Mumbai: Big real estate developers like Pirojsha of Godrej Properties Ltd, Abhishek Lodha of Lodha Group, Salarpuria Sattva Group, and Brigade Enterprises Ltd are a bet on the new emerging co-living space market to capitalize on its growing call for and ability sales generation in key Indian cities.
Though a fragmented market ruled by personal home proprietors who run paying guest (PG) facilities, a few, like NestAway, OYO, and CoHo, are already working inside the rising space focused on younger running experts and college students.
Given its growing popularity, large traditional builders have also explored the concept. They are equipped to strive to use it as an extension in their current residential and commercial enterprise and earn apartment profits.
Bengaluru-based 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 next year. “We are honestly searching at this area as an offshoot of our residential business. We are identifying which of our projects can get into co-dwelling,” said Pavitra Shankar, government director of Brigade Enterprises Ltd.
She said the organization is asking about some of the big housing tasks on the drafting board and is probably to come next year as potential ones to start its co-living commercial enterprise.
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 market, in step with statistics by using actual estate advisory firm Antirock Property Consultant Ltd. As per the IMF estimate in 2016, India’s residential apartment marketplace was estimated to be over $20 billion, of which $thirteen.5 billion came from city areas.
According to Anuj Puri, chairman of Antirock Property Consultants, condo yields supplied through co-living spaces can go as much as eight-11% compared to the contemporary average work of one-3% in residential houses.
“This fact is sincerely paving the manner for a brand new asset magnificence in real property investing,” 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 Clive, 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 the director of Salarpuria Sattva Group, stated that they’d acquired a 50% stake in the co-living mission. “Co-living in cities is a wonderful idea that matches well in towns as a middleman association among student housing until 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 House, which is gearing as much as launch its first co-residing assets inside the next four weeks.
Kalpesh Mehta, the co-founder of House, said the enterprise could participate with the developers for their future co-living initiatives. However, they may be present just as their financial traders.
