Chennai: The co-living sector in the country will be 20 times bigger by 2022 than it is today, with values reaching up to $2.2 billion, a study has said.
Today, the shared-living market, that offers private bedrooms with common shared areas like recreational rooms, stands at $120 million (Rs 845 crore), research and advisory firm RedSeer Consulting has said.
The organised co-living sector in India grew over 100% over the last year, industry experts told Business Line. And 60% of the market still operates informally, suggesting that a major chunk of the pie is there for the taking by tech startups foraying into the space.
“The last couple of years have seen the co-living market grow rapidly to reach a significant scale, driven by players like NestAway and others who doubled supply to almost 50,000 beds in 2018,” RedSeer’s report has said.
According to Redseer, two specific demographics who are away from home and face sky-high rents are subscribing to the upcoming trend – a white collar professional who comes to another city for a job and students who come to pursue degrees at a different place.
Reports suggest that co-living system is easy on the wallet, costing Rs 10,000 less than what it is needed for solo rooms.
Real estate consultancy Knight Frank India in its report in December last year also stated that seven out of 10 Indians aged between 18 and 23 welcomed co-living spaces.
It must be noted that last year Softbank-backed hospitality startup OYO announced the launch of its co-living vertical OYO Living. Bengaluru-based Zolo raised $30 million and is targeting to setup 50,000 beds by year-end. Not to be left behind, StayAbode Ventures is developing one of the biggest co-living projects in India, as well.