The Indian real estate market is on the brink of a revolution at the moment and Co-living 3.0 is on the way to the top —an innovative concept that has overturned attitudes of the young people who shape the modern days’ megacities. This evolving enrolment of shared living spaces is not just fulfilling the elementary housing needs of young Indians but also giving rise to communities, further growth in persons, and embracing sustainability.
Co-living Evolution in India
Co-living in India evolved from mere PG arrangements. The first wave of professionalism to co-living spaces happened in 2015, with the major focus being on basic amenities and shared common areas. Co-living 2.0 incorporates more polished designs and service intensification to meet the growing demands of young professionals.
Now, it is time for Co-living 3.0—barely explanatory of holistic living, much more beyond a place called home. The Indian co-living rental market will touch Rs 2 trillion by the year 2025, says a report by JLL India, at a compound annual growth rate of 17 per cent from 2021 to 2025.
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Unique Features of Co-living 3.0 in India
1. Community-Centric Design:
Co-living 3.0 spaces in India translate to a sense of belonging. Common areas, then, are deliberately curated spaces encouraging interaction and collaboration. A report by ANAROCK Property Consultants showed that properties with well-designed community space saw 25% higher occupancy compared with traditional rental accommodation.
2. Technology Integration:
From smart home technologies to custom apps, innovation is entering Indian co-living spaces. According to a survey by Housing.com, 82% of the residents in metro cities took into consideration the element of tech integration while choosing co-living spaces. Biometric entry, IoT-enabled devices, and community apps are some common features associated with it.
3. Wellness Focus:
Co-living 3.0 has an important component: mental and physical wellbeing. Yoga studios, meditation rooms, and gyms are fast becoming staples across a large number of properties. In this regard, a 2023 study by CBRE India suggested that co-living properties with dedicated wellness facilities demonstrate 20% growth in turnover compared to those without such facilities.
4. Sustainability Initiatives:
Environmental awareness has started gaining momentum across young Indians. Features related to sustainable design, solar panels, rainwater harvesting systems, waste management programs are part of the Co-living 3.0 spaces. According to a report by Knight Frank India, in the large Indian cities, 75% of those below 35 years choose co-living spaces where sustainability features have a good role for residents.
5. Skill Sharing and Networking:
Co-living 3.0 in India goes beyond expectations. It is not just a roof over one’s head, but every property is for personal and professional growth; a lot of properties come up with workshops, networking events, and skill-sharing sessions. In the Cushman & Wakefield India survey, 68% of occupants claimed to expand their professional network due to activities conducted by the co-living community.
6. Flexible Contracts:
Knowing that young professionals need mobility, Co-living 3.0 comes with much more flexible leases. Short-term stays and easy transfer between properties in different cities are common. PropTiger reports that properties with flexible contracts see occupancy rates 18% higher than those with traditional leasing models.
Market Growth and Demographics in India
Co-living industry in India has emerged rapidly in the last couple of years. Arguably, the co-living market of India, said a report by RedSeer Consulting, amounts to USD 6. 67 billion in 2022 and will further increase to USD 13.92 billion by 2025 at a Compound Annual Growth Rate of 14.5% towards the year 2025 from the current year 2022. While the millennials, especially those born between 1981 and 1996, are the pioneers of co-living in India, Gen Z, that came into the world between 1997 to 2012, has quickly emerged as the other key demographic for this segment. According to a study, the share of Gen Z in co-living populations was found to be 45% higher in 2024 in India than the previous score of 30% in 2020.
Challenges and Future Perspective in the Indian Context
Despite the growth, there are many issues haunting the sector of co-living in India:
1. Regulatory Hurdles: Absence of a uniform regulatory framework for these spaces is an area of pain for operators and investors, as is the case in most Indian cities.
2. Cultural Adaptation: It is yet to be seen how the concept of shared living will be balanced with traditional Indian family values and privacy concerns in some regions.
3. Infrastructure constraints: Some cities have much more inadequate infrastructure and power-supply issues, which refrain from incorporating advanced technologies in co-living spaces.
4. The COVID-19 pandemic instigated the feeling of adaptability to designs to accommodate social distancing when necessary.
Co-living 3.0 is tectonic in shifting how millennials and Gen Z Indians live urban lifestyles. Focusing on community, personal growth, and sustainability, the new model promises to tackle almost every challenge inhibiting young urban dwellers within the country. As the sector further evolves, it holds out the promise of changing not just housing markets across India but the very granularity of its urban communities. Challenges notwithstanding, the growing popularity and broadened demographic appeal of Co-living 3.0 make the case that this new breed of housing model is going to assume visibly enhanced importance in the future of urban living for India.
(By Siddharth Maurya, Founder and MD of Vibhavangal Anukulakara)
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