Real Estate

Organised co-living space sees 100% growth in one year

Garima Singh New Delhi | Updated on December 10, 2018 Published on December 10, 2018

As the organised sector offers various facilities such as laundry, cleaning and maintenance, the accommodation comes at a premium of up to 20 per cent   -  K Murali Kumar

The organised co-living space has seen a growth of around 100 per cent in the last one year, according to industry experts. However, the segment still has a large number of unorganised players.

Currently, the organised segment holds 40 per cent of the market. But the industry is of the view that going by the growing trends, unorganised players are likely to collaborate with their organised counterparts.

Co-living start-up

“Lately, we have received various queries from the real estate brokers that they want to collaborate with us. So, they are giving us buildings and sharing other related information,” said Uday Lakkar, founder of CoHo, a Delhi-based co-living start-up.

He added that from 500 beds in 2017, the company has expanded to 2,500 beds in 2018. “I am not creating a new demand or new base as it was already there. It is the usage pattern that has changed,” he said.

The co-working segment is basically divided into four categories including working professionals, student living, short-term corporate travellers, and medical tourism.

Anajli Sharma, a professional working with Kotak, said, “During my graduation I stayed in a paying guest accommodation but there was constant interference from the owners and it was difficult to handle them on a daily basis. So, when I moved to Delhi, I chose an organised player.”

Higher costs

The rent that the customer pays is generally on the higher side compared to unorganised housing accommodation.

“Since the organised sector offers various facilities such as laundry, cleaning and maintenance, the accommodation comes at a premium of up to 20 per cent,” said Mudassir Zaidi, Executive Director (North), Knight Frank.

He added that the concept, which is at a nascent stage, has presence only in metro cities right now.

Utkarsh Kumar, a real estate agent, said, “They (the organised players) create short-term disturbances in the market but their working model also gives us a opportunity to improve the way we function.”

 

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Published on December 10, 2018
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