India, April 07, 2022 (GLOBE NEWSWIRE) -- India Co-living Market Performance
In 2020, India co-living market size has witnessed manyfold decline but with the gradual reopening of offices and institution showed signs of developments from mid of 2021. 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, Co-living segment in India is predicted to have a recovery in occupancy due to the expected growth in 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.
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 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 outbreak of the virus 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.
COVID-19 Disrupted Operations and Resulted Huge Losses
India Co-living sector has witnessed the negative growth rate in 2020 due to the virus outbreak. Uncertainty in economy, which resulted in job loss, and forced migrant population to return back to their home countries and hometowns therefore due to this scenario the evolving Co-Living sector came to a halt. 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.
Further Key Findings
Economic Boost: Co-living communities have gained immense popularity in recent years, mostly 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.
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 millennials or the Gen Y population (age group born 1981 and 1994) in over the past few years. The large segment of millennials population are boosting the country’s overall economic growth in recent years and also accounting for a major contributing factor in India’s Co-living market.
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 centers. 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.
Key Questions Answered
How Co-living market in India is shaping up after the virus outbreak?
How India co-living market size is expanding?
What is the gap between demand and supply of rental housing in India
What all factors are diving India’s Co-living market and what challenges industry is witnessing?
What was the impact of COVID-19 over the India Co-living market?
How Indian economy is performing after the virus outburst?
What 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 ar the major players in the Co-living segment in India and their key performance areas?
