Co-Living Surge: India’s Growing Rental Revolution

India's co-living market has attracted USD 980 million over the past decade, as demand for managed rental accommodations surges. Investors are increasingly confident in the sector's growth potential, driven by demographic shifts, urban migration, and evolving lifestyle preferences, with significant investments in Tier I and II cities.

In a trend that reflects shifting living preferences, India's co-living sector has amassed USD 980 million in investments over the past decade, according to a report by Colliers India. This surge is largely driven by rising demand for managed rental accommodations among students and young professionals in Tier I and select Tier II cities.

As the co-living market enters a burgeoning phase, it is buoyed by key demographic factors such as urban migration and increasing disposable incomes, said Badal Yagnik, CEO of Colliers India. The report suggests that organized co-living spaces, currently at approximately 300,000 beds, are set for expansion.

With the pandemic-induced lull now dissipating, institutional investors see co-living as a lucrative asset class, offering returns of about 10%, significantly outpacing traditional residential yields. Funding across various stages and instruments underscores sustained investor confidence, with the market poised for further growth.

(With inputs from agencies.)