The Future of Co-living Spaces: Rising Trend and Future Expectations
From the traditionally restrictive bachelor pad hostels and PG accommodations where the purpose of boarding and lodging were taken care of, the real estate market has come a long way: the rising trend of co-living spaces is both sophisticated and luxurious when compared to millennial living spaces. They are not only fully furnished but also well-maintained and have no ownership hassles. With the rising trend of co-living spaces, it is high time to analyze what to expect in the future from this newest venture in the real estate market.
What is a Co-living Space?
To begin with, a co-living space is a residential setup that is shared by individuals who live in a communal environment together. Residents in co-living spaces usually have private bedrooms but all other areas like kitchens, living rooms, and in certain cases, bathrooms, are all shared by one and all. This helps to create a sense of community, with plenty of opportunities for social interaction and collaboration among residents.
What Caused the Rise of the Co-Living Industry?
#1 Slowing Down the Pandemic
“The organized segment experienced a decrease in occupancy until Q3 2020, but rebounded as demand surged, with corporations seeking to place their employees closer to offices to reduce travel time,” notes Ajay Sharma, Managing Director of Valuation Services (India) at Colliers International. However, most of the facilities that catered to the student population remained nearly stagnant. There were lower occupancy rates than before owing to the online learning models and classes that the educational sector adapted to.
#2 Shift in the Business Model
The co-living sector has witnessed a significant transformation in demand due to the pandemic. Operators are increasingly tailoring their spaces to cater to the specific needs of their clientele. Furthermore, there has been an uptick in demand for single and twin-sharing rooms as opposed to accommodations for three or more individuals.
#3 Rising Focus on Efficiency
Ensuring that everyone has access to capital at low-interest rates is crucial for the growth of the co-living sector in the post-pandemic era. The affordability of co-living spaces operated by organized entities is of paramount importance, particularly in attracting students and single employees.
Co-living Spaces in India
According to Colliers’ latest report, titled “Future of Co-living in India,” the co-living market in India is projected to double by 2024, reaching 450,000 beds by the end of that year. In the year 2019, over 70,000 beds were added across the country. However, due to the pandemic, occupancy levels plummeted to 30 percent in 2020 from a robust 90 percent in 2019. Moreover, a reversal in the trend of rental rates for co-living spaces is evident, having experienced a 15–30 percent reduction.
What Does the Future of Co-Living Spaces Look Like: Top 5 Things to Expect
The co-living model has seen significant growth in recent years, evolving from a niche housing option to a mainstream lifestyle choice. But what does the future hold for this trend? Here, we’ll examine key factors that could shape co-living in the next decade.
#1 Integration of Technology
As smart home technologies continue their rapid evolution, co-living spaces are poised to undergo a profound transformation towards automation and intelligence. Expect advanced security systems and Internet of Things (IoT) integration to become commonplace, heightening comfort, security, and overall efficiency.
#2 Models that are Environmentally Sustainable
Sustainability isn’t merely a passing trend, but a steadfast commitment to a greener future. Tomorrow’s co-living spaces will undoubtedly embrace more eco-friendly solutions, incorporating elements like solar energy and cutting-edge waste management practices, aligning seamlessly with global sustainability objectives.
#3 Hybrid Work-Life Spaces
The surge in remote work during the pandemic has created a surge in demand for adaptable living arrangements that cater to professional needs. Anticipate future co-living spaces to feature even more comprehensive co-working amenities, possibly enticing businesses to invest in these models for the benefit of their employees.
#4 Regulatory Frameworks
With the burgeoning popularity of co-living, it is inevitable that regulatory attention will follow suit. While this may entail more stringent compliance requirements, it could also usher in advantageous frameworks that safeguard the interests of both investors and residents alike. Beyond the physical space itself, upcoming co-living models are likely to prioritize community-centric amenities.
#5 Community-Centric Amenities
Future co-living models may go beyond physical space to offer more community-centric amenities, such as shared transportation, community gardens, or even educational programs, making co-living not just a place to stay but a holistic lifestyle choice.
Conclusion
The next decade holds promising opportunities for the evolution of co-living spaces. As society progresses and changes, so will the ways in which we choose to live and interact. The real estate market undergoes changes every day. Nevertheless, this new rising trend in the market looks promising and the prospect of its rising popularity in the future seems inevitable.
