Co-living units getting back on track in Hyderabad
Hyderabad: Gowlidoddi, located off the Financial District, was seen as a suburb until recently. The place is now a booming spot for hostels, paying guest accommodation and co-living. Hostels and PG units have been in vogue for some time now. Co-living units had seen a sharp rise till 2019, then a fall due to work-from-home […]
Hyderabad: Gowlidoddi, located off the Financial District, was seen as a suburb until recently. The place is now a booming spot for hostels, paying guest accommodation and co-living. Hostels and PG units have been in vogue for some time now. Co-living units had seen a sharp rise till 2019, then a fall due to work-from-home in 2020-21, and is now slowly getting back on track.
What is co-living?
Co-living is the same as renting out a furnished apartment. However, the rentals are based on the number of beds rented out. So in a dwelling unit, there could be one, two, or three bedrooms with an attached bathroom. Each member is given a bedroom. Expenses for kitchen, utility space, lounge area, work zone, wifi, common areas, facilities, and amenities are shared. The rents range from Rs 7,750 per person for triple occupancy, Rs 8,500 for double occupancy and Rs 16,000 for single occupancy. This is for working professionals who come from other cities. It also works better for students. In both cases, renting out a full apartment is a costly affair and they actually may not need or use the entire unit. Co-living focuses on providing a set of amenities relevant to a specific occupier set and also ensuring safety and privacy. One can just move into a furnished space without the hassle of getting the baggage.
Acceptance
Co-living in its modern configurations is seen as an appealing, acceptable and effective solution to the high prices of real estate and increasingly solitary lifestyle in India. The young population who migrates to urban centers form a great niche in the co-living market, said real estate advisory and investment management company Colliers India Chief Executive Officer Ramesh Nair in a recent report ‘The future of co-living in India’.
Covid effect
Between 2015 and 2019, student housing and co-living witnessed exponential growth resulting in a sharp increase in the number of operators and investments. The pandemic has marred the growth story of the co-living sector in 2020 but the sector has witnessed a recovery in 2021. The industry is going through a phase of re-consolidation, the result of which includes growth in not just the metro and tier-I cities, but the tier-II urban centres as well. While some players exited the business due to the financial stress of the previous year due to the Covid, others have strengthened their position by acquisitions and expansion, the report said.
Demand drivers
The growing millennial population with higher disposable incomes and the desire for upscale community living are the key demand drivers. While many organisations in Hyderabad planned to recall their employees back to the office in January, the new Covid variant, Omicron, played spoilsport. If everything falls in place again, and IT employees start working from office, it would aid in further rise in demand for co-living.
Flexibility
It is the flexibility of the co-living model that makes it appealing to the youth. Developers, who can own and manage the co-living units or lease them, are creating comfortable and secure options in Delhi, Noida, Hyderabad, Pune, Bengaluru, Chennai, Indore, Kota and Dehradun. These have fledgling IT, ITES or education segments. The easy rental and deposit terms, options to make online payments, amenities such as gym, lounge areas, internet access or others swing the decision in favour of co-living units.
More facilities
Co-living in India is nascent and operators are updating their offerings and price. The rental yield is higher compared to a traditionally rented house. From the property owners’ point of view, they have to deal with just one agency managing it for rents instead of following up with multiple tenants. Future housing projects are likely to have co-living components resulting in a wider range of amenities, community events and co-working for wider retention.
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