Mumbai: Big actual estate developers like Pirojsha of Godrej Properties Ltd, Abhishek Lodha of Lodha Group, Salarpuria Sattva Group and Brigade Enterprises Ltd are having a bet on the new emerging co-living space market to capitalise on its growing call for and ability sales generation in key Indian cities.
Though nonetheless a fragmented market, ruled by way of personal home proprietors who run paying guest (PG) facilities, a few begin-usalike NestAway, OYO and CoHo are already working inside the rising space focused on younger running expert and college students.
Given the growing popularity, large traditional builders also are exploring the concept and equipped to strive as an extension in their current residential commercial enterprise and earn apartment profits.
Bengaluru-based totally actual property developer Brigade Group is looking to enter the co-residing area with plans to begin production of its first co-residing venture in Bengaluru via next year. “We are honestly searching at this area as an offshoot of our residential business as well. We are identifying which of our projects can get into co-dwelling,” said Pavitra Shankar, government director, Brigade Enterprises Ltd.
The organization is asking at some of the big housing tasks which might be on the drafting board and probably to come next yr as potential ones to start its co-living commercial enterprise, she said.
Even as the concept unearths recognition in big Indian towns like Bengaluru, Mumbai, Gurgaon and Pune, co-residing still stays a spot phase within the entire condominium housing marketplace. Rental housing occupies around 35-forty five% of the overall residential marketplace, in step with statistics by using actual estate advisory firm Antirock Property Consultant Ltd. As per IMF estimate in 2016, India’s residential apartment marketplace was estimated to be over $20 billion, of which $thirteen.5 billion come from city areas, it said.
According to Anuj Puri, chairman, Antirock Property Consultants, condo yields supplied by way of co-living spaces can go as plenty as eight-11% as compared to the contemporary average yield of one-3% in residential houses.
“This fact is sincerely paving the manner for a brand new asset magnificence in real property investing,” stated Puri stated, adding that such spaces can also lessen the purchaser’s average price of living with the aid of as a lot as “10-15% with most useful real property utilization and economies of scale,” he said.
Shared living company Colive, which lately raised ₹63 crore in Series A investment led with the aid of real estate Salarpuria Sattva Group, plans to make use of the money to scale up its operations from 12,000 beds to one lakh beds over the next two years. Bijay Agarwal, dealing with director, Salarpuria Sattva Group stated that they’ve acquired 50% stake in the co-living mission. “Co-living in cities is a wonderful idea which matches well in towns as a middleman association among student housing and till one buys a house. It’s a worthwhile, quantity-pushed business,” Agarwal said.
This week, main real property builders like Abhishek Lodha, Pirojsha Godrej and Harsh Patodia, chairman of Kolkata-based totally Unimark Group announced their funding in Gurugram-based begin-up Housr which is gearing as much as launch its first co-residing assets inside the next four weeks.
Kalpesh Mehta, co-founder of Housr, said the enterprise could look at taking part with the developers for their future co-living initiatives although they may be presently just their financial traders.