The pandemic-induced economic pitfall bore a silver lining ushering in terms of the growth of real estate classes, which obviously have been quite popular in the West for some time but are still relatively new concepts in India. For example, co-living spaces have emerged as a residential housing format in many parts of NCR, most favoured by millennials and Gen-Z populations, alluding to co-living spaces as an economical, reliable and new-age home investment.

The National Capital Region (NCR) is an employment hub with desirable career growth opportunities and diverse job markets. It is a natural attraction for thousands of youngsters who come with dreams of settlement longevity. However, the enormous upsurge in home prices, especially in NCR, is also a post-Covid reality, which is unlikely to plummet soon, especially in the face of steep inflation and skyrocketing home loan mortgage rates.

This has drastically increased the demand for co-living spaces in housing locations, especially near employment centres and corporate districts. Co-living spaces are economical, which allows the cohabitation of like-minded individuals. It assures them of certain privileges like lower maintenance fees and shared rental values. Subsistence becomes more manageable in an otherwise costly big-city lifestyle. Usually, they are top preferences of college-going students, job neophytes, and seekers who do not have the income bandwidth to invest in full-fledged or high-end homes but can expend their monthly earnings as rental remittances. They are often referred to as ‘budget-friendly rental accommodations’.

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Millennials and the Gen Z populace have shown a proclivity towards investment in co-living spaces than studio apartments. Co-living spaces are roomy and spacious with a proper kitchen, living room, balcony, and other amenities, which can be availed at a lower price value than studio apartments, which are compact and only fit for single-person usage.

Co-living spaces are of different types as per the end-users’ convenience- for example, Single Occupancy, Double Occupancy, and Triple Occupancy.  Most co-living spaces are premium furnished, which cuts back the additional monetary expenses. The high-end co-living spaces also offer multifarious amenities such as Gym, Lounge, Restaurant, Movie Theatre, Concierge and Housekeeping Facilities, and a Co-working space for Work-From-Home enthusiasts.

The young demography, aged between 21-32, is showing great enthusiasm for Co-living spaces. The contemporary sociocultural milieu is also favouring the growth of co-living spaces. Socialisation and Networking have become essential prerequisites for job landing in modern times. The co-living space equilibrium allows productive interactions and discussions, which helps in holistic vocational and personality development.

As the pandemic aftereffects waned out, there was a gradual reinstation of Work-From-Office models, with remote working laid in abeyance. The absorption of co-living spaces grew at a faster rate, with service classes returning to their office locations and workstations.

However, with growing prominence, Co-living spaces have emerged as a bankable real estate format, especially in Gurugram. Moving upwards in the sales figures, it has become one of the hottest trends, giving a significant boost to rental housing in NCR.

(By Khushboo Ahuja, COO, Flock Coliving)