Over 70% millennial willing to consider co-living spaces in top cities
About 72 per cent millennial (18 – 23 years) are willing to consider co-living spaces as an option for their accommodation, according to a recent survey conducted by Knight Frank India.
Co-living is a concept of housing where the living space is shared by residents.
The survey was undertaken across top cities of India, including Mumbai, Bengaluru, Pune, Hyderabad and NCR. It also observed that over 55 per cent respondents in 18-23 years age group are willing to spend Rs 10,000-15,000 per month on such accommodation.
“As an asset class, the biggest driving force behind the rising popularity of co-living spaces are young renters moving to new cities who are looking for easy access and reasonably priced rental accommodation,” said ShishirBaijal, Chairman and Managing Director, Knight Frank India.
Proximity to work and social infrastructure remained top priority for millennial while selecting a location while only 5% gave importance to rental costs.
The study further adds that a stable co-living facility generates net yield of approximately 12%, while rental yields from a traditional 1BHK remain at 1.5 – 3%.
“As more and more organised players enter co-living spaces, these are likely to attract institutional funding, assuring better yields to development and operating companies,” Shishir added.
Recently, StayAbode, a co-living operator partnered with CP Developers to set up a co-living space in Whitefield, Bengaluru. Apart from StayAbove, several startups such as CoHo, CoLive, Stanza Living, Zolostays, etc are operation in the segment.