Co-living Market in India is Expected to Cross USD 1.0 Billion Mark by 2025 Strongly Driven by Student Population Preferring Affordable Housing with Amenities

The theory of co-living is not new, and it has been practised in India for several decades. It was traditionally found in an unorganized/informal setting, such as paying guest (PG) lodging and private/academic institution-run hostels. In India, the demand for the Co-living market in India has been majorly driven by the Migrant working population, and students have been in great demand for these.

Before the virus outbreak, the organized market witnessed immense growth, as India is the world's third-largest start-up hub, with a high number of young people eager to work for new businesses. They are also willing to move for employment assignments to other cities. Digital nomads, often known as Generation Y or millennials, are people who aren't ready to settle down but are happy to travel and work remotely from different locations.

In 2020, India co-living market size witnessed a manyfold decline but the gradual reopening of offices and institutions showed signs of development from mid of 2021. The youth population has started exploring nature while working from home, which was one of the main reasons that helped the co-living spaces having their setup close to the nature/tourist places to survive even during the inverse conditions. In coming years, the Co-living segment in India is predicted to have a recovery in occupancy due to the expected growth in the workforce, migration to urban centres for jobs, the unstructured shared living sector, and the growing student population increasingly yearning for the organized modern co-dwelling model.

COVID-19 Disrupted Operations and Resulted In Huge Losses

India Co-living sector witnessed a negative growth rate in 2020 due to the virus outbreak. Uncertainty in the economy resulted in job loss and forced the migrant population to return to their home countries and hometowns; therefore, the evolving Co-Living sector came to a halt due to this scenario. The biggest contributor to the demand for Co-Living spaces is the migration of students and young millennials to urban cities. Until 2019, India saw an annual absorption of approximately 35-40 million sft of Grade-A office space. Due to the pandemic, this fell by approximately 10-15% in 2020 and has remained low for the majority of 2021.

Full Report:
https://www.makreo.com/report/india-co-living-space-market-performance-and-future-outlook-to-2025

Further Key Findings:

1. Economic Boost: Co-living communities have gained immense popularity in recent years, mainly owing to the convenience it provides to the users in the form of shared spaces with integrated public services, transportation services, etc.
Co-living spaces largely reduce expenses such as rentals and commuting costs for the residents, enabling them to save money which can be used to support businesses. Service providers in the market, too, flourish with more vital foot traffic. Moreover, real estate values rise, which is directly beneficial to investors in the industry.

2. Increasing Millennial Population in India: With a total population of around 440 million people, India is home to the largest millennial population globally. Nearly 35% of the country’s population is in the age group of 18-37 years, out of which about 36 million are students.
Demand for co-living spaces in India has largely been driven by the millennials or the Gen Y population (age group born 1981 and 1994) in over the past few years. The large segment of the millennials population is boosting the country’s overall economic growth in recent years and also accounting for a major contributing factor in India’s Co-living market.

3. Converting unsold Inventories into Ready-to-move-in Homes: The share of the young population (under 25 years) in India is nearly half (approximately 600 million people) of the country’s total population. A considerable percentage of this population is migrating to tier-I and tier-II cities in quest of jobs and other economic opportunities. This has led to a surge in demand and consequent shortages of quality affordable housing in urban centres.
However, simultaneously, millions of housing units and residential properties are found to be vacant across the country. By transforming these vacant properties into fully-managed shared accommodations offering a variety of amenities, the country’s co-living startups are playing a key role in addressing this unique problem.

The report titled “India Co-living Space Market Performance and Future Outlook to 2025-An Impact Assessment of COVID-19” published by Makreo Research and Consulting gives a detailed analysis of India’s Co-living market trends which has been endorsed by young people across the nation, is an innovative way to continue professional and personal growth beyond the office. The report is a complete guide to understanding the blooming industry’s present situation and expected future performance. The report study India co-living market size and assesses future growth considering the micro and macro-economic factors.

Key Questions Answered:
• How is the Co-living market in India shaping up after the virus outbreak?
• How India co-living market size is expanding?
• What is the gap between the demand and supply of rental housing in India?
• What all factors are driving India’s Co-living market, and what challenges the industry is witnessing?
• What was the impact of COVID-19 on the India Co-living market?
• How is the Indian economy performing after the virus outburst?
• What are all challenges present in the market?
• What is the expected future of co-living in India?
• What is the investment scenario in India’s Co-living market?
• Who are the major players in the Co-living segment in India and their key performance areas?