India’s co-living market to double by 2024: Colliers
Hyderabad: The co-living segment in the country is expected to see a recovery driven by reopening of offices, record vaccination and reopening of colleges in a phased manner. The segment is expected to have 4,50,000 beds mainly driven by organised players by 2024 as opposed to 2,10,000 beds by the end of 2021, according to […]
Hyderabad: The co-living segment in the country is expected to see a recovery driven by reopening of offices, record vaccination and reopening of colleges in a phased manner. The segment is expected to have 4,50,000 beds mainly driven by organised players by 2024 as opposed to 2,10,000 beds by the end of 2021, according to Colliers.
“The unemployment rate is down to seven per cent in November 2021, a gradual dip from 11.84 per cent in May 2021. Also, amidst the pandemic, hiring by IT companies has gathered pace followed by robust performance of the sector which will only add on to the demand for the co-living in coming quarters,” said Ramesh Nair, CEO, India and MD, Market Development, Asia, Colliers.
Between December 2020 and March 2021, the occupancy in most co-living facilities crossed the 45 –50 per cent mark as the market improved and 60-70 per cent in Q4 of 2021. However, the second wave proved to be a dampener from Q2 onwards as occupancy dipped sharply.
The co-living segment is further expected to witness recovery in occupancy in 2022 with factors such as increasing workforce, migration to urban centres for jobs, the unorganised shared living sector and the growing student population increasingly looking for the organised modern co-living model.
“While many players have exited the business as they could not sustain the financial stress of the previous year, others have capitalised on the opportunity to strengthen their position by strategic acquisitions and expansion in prime locations in metro cities,” said Subhankar Mitra, MD, Advisory Services, Colliers India.
Many investors already actively pursue options in the market to create flexible co-living facilities. The lucrativeness of a higher yield compared to a traditionally rented house has resulted in an influx of new players every year where this trend is expected to continue for the next few years.
Co-living offers attractive returns; 2-4 times higher than the traditional residential yield of 2-3 per cent. However, co-living in India is still in its nascent stage and the operators are constantly updating their metrics.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.
Click to follow Telangana Today Facebook page and Twitter .
