Gen Z, millennials shift towards co-living spaces; players plan expansions
In the city, the trend has been further accelerated by closure of 200 to 300 PGs due to stricter Bruhat Bengaluru Mahanagara Palike (BBMP) regulations, coupled with layoffs in the IT sector, prompting entry-level professionals to opt for co-living.
'Co-living facilities offer a more structured, all-inclusive living experience with fully furnished ready-to-move-in spaces at affordable rentals. This offsets the relatively lower rentals offered by traditional PGs and has contributed to the growing preference for co-living facilities in Bengaluru,' Vimal Nadar, national director and head of research, Colliers India said.
'The closure of 200 to 300 PGs across Bengaluru due to legal and regulatory non-compliance has significantly boosted demand for our co-living offerings, and that momentum is only growing,' said Jitendra Jagadev, chief executive officer, Nestaway and HelloWorld, which offer co-living and student housing accommodations with value-added services, like housekeeping, maintenance, and fully furnished rooms.
Nestaway and HelloWorld together have 1,000 beds, which they plan to double over the next two years.
Co-living accommodations offer WiFi, housekeeping, dedicated coworking spaces, kitchen areas, laundry rooms, recreational areas, gaming zones, fitness areas, 24/7 security, and curated community events.
The rents typically include access to shared amenities, utilities, housekeeping, and basic furnishings. In contrast, apartment rentals usually exclude utility and maintenance charges. As a result, the overall cost of accommodation in a given locality is generally lower for co-living facilities compared to similar apartment rentals. Additionally, flexible stay durations and minimal upfront costs make co-living an attractive option for many tenants. Most co-living operators are maintaining an average rate of 85–90 per cent. Rental prices at Colive, Trulive, Nestaway, and HelloWorld range from ₹10,000 to ₹35,000 per month, depending on the type of accommodation—whether private or shared.
Rami Kaushal, managing director, Consulting & Valuation Services, India, Middle East & Africa, CBRE said, 'Co-living is also helping people avoid making a long-term financial commitment to a particular city, such as paying hefty security deposits for rent or EMIs for buying homes.'
CBRE noted that some of the micro-markets in Bengaluru, such as Thanisandra, RT Nagar, Mahadevapura, Hoodi, and Banaswadi, have witnessed growing traction for co-living spaces. The average monthly rent for a double-occupancy room in co-living setups ranges from ₹12,000 to ₹14,500, whereas traditional PG accommodations in these areas typically range between ₹8,000 and ₹10,000.
Bengaluru is home to several leading co-living operators in India, including Stanza Living, Zolo Stays, Colive, Hello World, Settl, Coho, Covie, Yello Living, and Olive Living. Markets like Mumbai, Pune and Hyderabad are also seeing a rise in co-living spaces, said experts.
Suresh Rangarajan, founder and CEO of Sattva-backed Colive, however, noted that availability of quality co-living spaces remains a challenge in many other cities. Colive operates around 15,000 beds in Bengaluru and plans to add another 7,000 by the end of 2025.
Rohit Reddy, co-founder and CEO of Chennai-based Truliv said that PG accommodation was not seeing enough traction, while co-living options were rising in numbers, more so in the post-pandemic period, giving customers the confidence to explore the organised and experience-driven stays. The company is looking to tap into Bengaluru's IT hub with 1,500 beds.
Commenting on the demographic mix in Bengaluru's co-living spaces, Jagadev said, 'Around 40 per cent of our residents are entry-level professionals, 35 per cent are students, and the remaining 25 per cent comprise mid-level executives and digital nomads. We're seeing a growing share of remote workers, reflecting Bengaluru's rise as a hub for flexible work culture.'
According to a May report by Colliers, the co-living segment is gaining strong traction across India, with inventory expected to reach one million beds by 2030. Market penetration is projected to rise from 5 per cent in 2025 to over 10 per cent by 2030. The sector could grow multifold, potentially reaching a market size of ₹20,000 crore by the end of the decade.
Commenting on the market beyond Bengaluru, Nestaways and Helloworld's Jagadev further noted that he sees a similar trend in other parts of the country, like Mumbai, Pune and Hyderabad.
However, Colive's Rangarajan said, 'We are observing a similar trend in Pune, but the availability of quality co-living spaces remains a challenge in many other cities.'
CBRE further highlighted that India is witnessing a shift from traditional PGs to professionally-managed co-living spaces across major cities, driven by the young population and digital workforce, who seek more than just basic accommodation. Moreover, these spaces build a sense of community and networking opportunities.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
5 hours ago
- Mint
Stop complaining about Gen Z workers—and start helping them
Because of the pandemic, some Gen Z workers missed out on formative experiences that help shape careers. Susan Lucia Annunzio is a leadership coach, author and president and CEO of the Center for High Performance. She also is an associate adjunct professor of management at the University of Chicago Booth School of Business. In many ways, Gen Z is unlike previous generations entering the workforce. The obvious reason is the pandemic, which isolated many in the Gen Z generation from both their peers and adults outside of their immediate families. Some of them missed out on formative experiences that can help shape careers, such as in-person classes and conversations, as well as internships, studying abroad and working in offices alongside seasoned veterans. At the same time, Gen Z has faced an unprecedented level of rejection, ironically as a result of technology intended to make processes easier. They can—and do—apply to dozens of colleges and hundreds of jobs with the click of a mouse. But faced with constant rejection, many young adults are more anxious, less motivated and more afraid to take chances than previous generations. It isn't unusual to hear some bosses stereotype Gen Z hires as being difficult to manage, complaining they lack initiative, communication skills and preparedness. In most cases, however, it would be a mistake to fire these young employees. A better response is to approach your Gen Z workers with empathy and provide opportunities for social interaction and development. The companies that do this will attract and retain the best young talent, while those that don't may continue to face turnover and disengagement. Here are five suggestions on how to motivate your Gen Z employees: Don't accept the negative stereotypes that are sometimes used to describe Gen Z employees. Instead, work to understand what might be prompting behaviors that look strange or different than what you might expect of a new hire. For example, rather than assuming young workers are antisocial or unfriendly, consider why they might find it difficult to interact with others and help them figure out what would make it easier. If they seem overly sensitive, explore why this might be, rather than judging them. During the pandemic, many young people used their alone time to enhance their technology skills. Some dabbled in coding or video production (think TikTok), while others experimented with AI, built apps or found new ways to create and connect in a digital-first world. These talents don't necessarily show up on résumés, so ask your young workers what technology skills they might have gained during lockdowns and how they applied them. Are those skills being used in their current role—or is there a better fit within the organization? Gen Z has been raised in a world of asynchronous communication—texts, DMs, emails, as well as Zoom meetings where they can turn off their video and audio, and participation is often optional. Forget about telling these employees you have an open-door policy; they won't walk through it. Instead, leaders may need to create intentional, low-pressure spaces for could mean taking young employees out for coffee, or setting up one-on-one video calls. This isn't a formal check-in or performance review—it's a conversation where your job is to listen. Ask your young workers about their ambitions, professional and personal frustrations and the influences shaping their worldview. When this generation feels heard, they will engage and grow. Think back to your first job. How did you make friends? Office banter, postwork drinks and team lunches were the foundation of your professional network. Now, imagine starting your career without them. That's the reality for many in Gen Z. Your role as a leader isn't just to manage their work—it's to introduce them to workplace culture. Do you provide opportunities for socialization? Maybe it's Cornhole Fridays, a bowling league or a team lunch. Better yet, ask them what they want. Identify your most outgoing employees and form a culture committee. Make socialization part of onboarding, not an afterthought. Formal development plans are more critical for Gen Z than they were for prior generations, when informal mentoring was more common. Such plans might include internal or external classes or workshops, a mentorship program, peer-support groups and opportunities to shadow employees or other role models. Efforts to improve Gen Z's verbal-communication skills, such as a public-speaking class or a workshop on difficult conversations, can be very helpful. Your job as a boss isn't to make these workers more like you—it's to make them the best version of themselves and maximize their value to your company. The choice is yours: Complain about Gen Z or coach them to become stars. Write to Susan Lucia Annunzio at reports@
Economic Times
9 hours ago
- Economic Times
How Bond duration impacts return in a falling rate regime, Gautam Kaul explains
Kshitij Anand: For investors, especially retail ones, could you give them a small masterclass on how rate cuts affect investor demand for different tenures of corporate bonds? I'm sure a lot of new investors—or the Gen Z ones, you could say—might not relate much to how bonds work. There's often more fear than accurate knowledge. So, if you could simplify this equation for them, that would be really great. Gautam Kaul: Live Events Kshitij Anand: Apart from that, looking at the industry more broadly—do you see the Indian bond market emerging as a relatively safe haven amid the global debt uncertainty? Gautam Kaul: Kshitij Anand: Also, let me get your perspective on ESG — one of the key themes that has emerged in both equity and bond markets. Are investors assigning a valuation premium to companies issuing ESG-compliant bonds, and what is driving the growing popularity of these instruments? Gautam Kaul: (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel As interest rates begin to soften, fixed income investors are increasingly revisiting the role of bond duration in shaping portfolio an insightful conversation, Gautam Kaul, Senior Fund Manager – Fixed Income at Bandhan AMC , breaks down how duration plays a critical role in enhancing returns during a falling rate the mechanics of price sensitivity to strategy shifts for various investor profiles, Kaul offers a clear roadmap for navigating bond markets in a changing rate cycle. Edited Excerpts –When you're investing in any fixed income instrument, there are two broad risks that you are exposed to—duration and rating. Rating refers to the credit risk associated with the bond. Duration refers to the weighted average maturity of all the bond's cash simplify, the sensitivity of a bond's price to interest rate movement is measured by its duration. For example, if a bond has a duration of one, then for a 1% change in yields, the price of the bond will rise or fall by 1%.Similarly, if the bond has a duration of 10, a 1% change in interest rates would cause a 10% change in the bond price—plus or minus. There's a bit of nuance to this, but that's the basic is this important? Because when interest rates rise or fall, the mark-to-market (MTM) impact on your portfolio is governed by the bond's duration. Bond returns come from two components: the coupon (or carry) and the MTM impact. Unless you are holding a bond till maturity, your holding period return consists of the coupon you earn—typically the bulk of the return and accrued daily—and any MTM gain or taking our earlier example: if your bond has a duration of one and interest rates drop by 1%, you will gain 1% from the MTM, in addition to your regular coupon. If you sell at that point, that MTM gain is we talk to investors about fixed income, we encourage them to look at two risks: duration risk, which drives the volatility of a bond fund, and credit risk. These are the key parameters you should evaluate before choosing which funds to invest has helped here through its categorization framework. For example, liquid funds cannot invest in instruments with maturities beyond 90 days; low-duration funds are capped at one year; short-term funds have defined duration bands. So, investors get a clear idea of the maximum and minimum duration risk a fund may example, short-term funds must maintain a Macaulay duration between one and three. So, in that case, for a 1% change in interest rates, your MTM impact could range from 1% to 3%.Earlier, it was relatively easy to assess the duration risk of a portfolio but much harder to assess credit risk. You had to dig into fact sheets and manually check the ratings of every holding. But a few years ago, SEBI introduced the Potential Risk Class (PRC) matrix—a simple yet powerful requires every fixed income fund to define the maximum level of duration risk and credit risk it can example, if a fund declares itself as PRC "A" on credit risk, that means the fund's average portfolio rating will be at least AAA at all times. If it's PRC "B," then the average rating must be at least gives the investor a clear sense of the maximum credit and duration risks associated with the fund—two of the most critical parameters when investing in fixed if you do nothing else, just look at the PRC classification. It gives you a reliable, forward-looking measure of the fund's risk yes, absolutely. In fact, I'd say India is, if not unique, certainly one of the few economies that offers both macroeconomic stability and high give some context—long-term fixed income investors are primarily trying to preserve the purchasing power of their money. That means earning returns that beat inflation, which is the holy grail. Achieving that consistently requires macro stability: low fiscal deficit, low and stable inflation, and ideally a manageable current account ticks all those boxes. Our current account deficit is low and stable. We're less exposed to tariffs compared to economies like Southeast Asia or China, which rely heavily on manufacturing exports. Our exports are predominantly services-based, which are more insulated from global tariff is also well under control—lower than the RBI's forecast and well below its upper tolerance level. The government has been fiscally responsible, reducing the fiscal deficit year after year (except during the COVID period, where even then, spending was targeted and controlled). They've also committed to bringing down the debt-to-GDP ratio over are exactly the metrics that any global fixed income allocator looks at. As a result, global investors have already started viewing India as a fixed income haven, even before our inclusion in the JP Morgan bond consider this example: If you compare two countries—one where the fiscal deficit is rising from 5.5% to 6.5-7%, and another where it's falling from 5.5% to 4.5%—you'd assume the latter is a developed market and the former an emerging one. But in India's case, it's the opposite. That speaks volumes about our policy all of this hasn't happened by accident—it's the result of deliberate, disciplined policy decisions. For a global fixed income allocator, this signals a stable environment with attractive key point: foreign ownership of Indian government bonds is still quite low—even post JP Morgan inclusion, it's under 3%. For comparison, many other emerging markets have foreign ownership ranging between 5-15%.So yes, India offers an attractive macro landscape, a deep and growing market, and plenty of headroom for increased foreign participation. I believe we're well-positioned to become a preferred destination for global fixed income as a movement — and the market attached to it — has gained significant traction and momentum in the West. In India, we are still at a very early stage of the entire ESG investing platform. Even within our landscape, equity is where we are seeing more traction compared to fixed said, we have seen some private corporates issuing ESG bonds. In fact, the Government of India also issues green bonds. So, there is a concerted effort, and of course, some demand for these instruments from specific a fixed income perspective, the market is still nascent and developing. Most of the demand for ESG bonds currently comes from foreign investors rather than domestic ones.I believe that as awareness grows, we could see ESG-dedicated funds in India as well — either from Indian or foreign investors — which could further drive investment in ESG bonds. There is great potential here, but we're still in the early the market paying a significant premium for ESG bonds? Selectively, yes. But it still needs to evolve into a more widespread and common instance, the government's borrowing cost for green bonds versus regular bonds isn't very different — perhaps just a 5-basis point green bonds were first introduced, our sense was that this premium — or "greenium," as it's called — could be much higher. That might still be the case in the future, given the early stage of the INR bond market.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
9 hours ago
- Time of India
How Bond duration impacts return in a falling rate regime, Gautam Kaul explains
As interest rates begin to soften, fixed income investors are increasingly revisiting the role of bond duration in shaping portfolio returns. In an insightful conversation, Gautam Kaul, Senior Fund Manager – Fixed Income at Bandhan AMC , breaks down how duration plays a critical role in enhancing returns during a falling rate environment. Explore courses from Top Institutes in Please select course: Select a Course Category Degree Data Science Artificial Intelligence MBA MCA Healthcare PGDM Technology Management Data Analytics Leadership Digital Marketing Operations Management Project Management Public Policy CXO Design Thinking Cybersecurity Finance Others Data Science Product Management healthcare others Skills you'll gain: Data-Driven Decision-Making Strategic Leadership and Transformation Global Business Acumen Comprehensive Business Expertise Duration: 2 Years University of Western Australia UWA Global MBA Starts on Jun 28, 2024 Get Details From the mechanics of price sensitivity to strategy shifts for various investor profiles, Kaul offers a clear roadmap for navigating bond markets in a changing rate cycle. Edited Excerpts – Kshitij Anand: For investors, especially retail ones, could you give them a small masterclass on how rate cuts affect investor demand for different tenures of corporate bonds? I'm sure a lot of new investors—or the Gen Z ones, you could say—might not relate much to how bonds work. There's often more fear than accurate knowledge. So, if you could simplify this equation for them, that would be really great. Gautam Kaul: When you're investing in any fixed income instrument, there are two broad risks that you are exposed to—duration and rating. Rating refers to the credit risk associated with the bond. Duration refers to the weighted average maturity of all the bond's cash flows. To simplify, the sensitivity of a bond's price to interest rate movement is measured by its duration. For example, if a bond has a duration of one, then for a 1% change in yields, the price of the bond will rise or fall by 1%. Similarly, if the bond has a duration of 10, a 1% change in interest rates would cause a 10% change in the bond price—plus or minus. There's a bit of nuance to this, but that's the basic principle. Why is this important? Because when interest rates rise or fall, the mark-to-market (MTM) impact on your portfolio is governed by the bond's duration. Bond returns come from two components: the coupon (or carry) and the MTM impact. Unless you are holding a bond till maturity, your holding period return consists of the coupon you earn—typically the bulk of the return and accrued daily—and any MTM gain or loss. So, taking our earlier example: if your bond has a duration of one and interest rates drop by 1%, you will gain 1% from the MTM, in addition to your regular coupon. If you sell at that point, that MTM gain is realized. When we talk to investors about fixed income, we encourage them to look at two risks: duration risk, which drives the volatility of a bond fund, and credit risk. These are the key parameters you should evaluate before choosing which funds to invest in. SEBI has helped here through its categorization framework. For example, liquid funds cannot invest in instruments with maturities beyond 90 days; low-duration funds are capped at one year; short-term funds have defined duration bands. So, investors get a clear idea of the maximum and minimum duration risk a fund may carry. For example, short-term funds must maintain a Macaulay duration between one and three. So, in that case, for a 1% change in interest rates, your MTM impact could range from 1% to 3%. Earlier, it was relatively easy to assess the duration risk of a portfolio but much harder to assess credit risk. You had to dig into fact sheets and manually check the ratings of every holding. But a few years ago, SEBI introduced the Potential Risk Class (PRC) matrix—a simple yet powerful tool. It requires every fixed income fund to define the maximum level of duration risk and credit risk it can take. For example, if a fund declares itself as PRC "A" on credit risk, that means the fund's average portfolio rating will be at least AAA at all times. If it's PRC "B," then the average rating must be at least AA. This gives the investor a clear sense of the maximum credit and duration risks associated with the fund—two of the most critical parameters when investing in fixed income. So, if you do nothing else, just look at the PRC classification. It gives you a reliable, forward-looking measure of the fund's risk profile. Kshitij Anand: Apart from that, looking at the industry more broadly—do you see the Indian bond market emerging as a relatively safe haven amid the global debt uncertainty? Gautam Kaul: Oh yes, absolutely. In fact, I'd say India is, if not unique, certainly one of the few economies that offers both macroeconomic stability and high yields. To give some context—long-term fixed income investors are primarily trying to preserve the purchasing power of their money. That means earning returns that beat inflation, which is the holy grail. Achieving that consistently requires macro stability: low fiscal deficit, low and stable inflation, and ideally a manageable current account deficit. India ticks all those boxes. Our current account deficit is low and stable. We're less exposed to tariffs compared to economies like Southeast Asia or China, which rely heavily on manufacturing exports. Our exports are predominantly services-based, which are more insulated from global tariff issues. Inflation is also well under control—lower than the RBI's forecast and well below its upper tolerance level. The government has been fiscally responsible, reducing the fiscal deficit year after year (except during the COVID period, where even then, spending was targeted and controlled). They've also committed to bringing down the debt-to-GDP ratio over time. These are exactly the metrics that any global fixed income allocator looks at. As a result, global investors have already started viewing India as a fixed income haven, even before our inclusion in the JP Morgan bond index. Just consider this example: If you compare two countries—one where the fiscal deficit is rising from 5.5% to 6.5-7%, and another where it's falling from 5.5% to 4.5%—you'd assume the latter is a developed market and the former an emerging one. But in India's case, it's the opposite. That speaks volumes about our policy strength. And all of this hasn't happened by accident—it's the result of deliberate, disciplined policy decisions. For a global fixed income allocator, this signals a stable environment with attractive returns. Another key point: foreign ownership of Indian government bonds is still quite low—even post JP Morgan inclusion, it's under 3%. For comparison, many other emerging markets have foreign ownership ranging between 5-15%. So yes, India offers an attractive macro landscape, a deep and growing market, and plenty of headroom for increased foreign participation. I believe we're well-positioned to become a preferred destination for global fixed income allocations. Kshitij Anand: Also, let me get your perspective on ESG — one of the key themes that has emerged in both equity and bond markets. Are investors assigning a valuation premium to companies issuing ESG-compliant bonds, and what is driving the growing popularity of these instruments? Gautam Kaul: ESG as a movement — and the market attached to it — has gained significant traction and momentum in the West. In India, we are still at a very early stage of the entire ESG investing platform. Even within our landscape, equity is where we are seeing more traction compared to fixed income. That said, we have seen some private corporates issuing ESG bonds. In fact, the Government of India also issues green bonds. So, there is a concerted effort, and of course, some demand for these instruments from specific segments. From a fixed income perspective, the market is still nascent and developing. Most of the demand for ESG bonds currently comes from foreign investors rather than domestic ones. I believe that as awareness grows, we could see ESG-dedicated funds in India as well — either from Indian or foreign investors — which could further drive investment in ESG bonds. There is great potential here, but we're still in the early days. Is the market paying a significant premium for ESG bonds? Selectively, yes. But it still needs to evolve into a more widespread and common practice. For instance, the government's borrowing cost for green bonds versus regular bonds isn't very different — perhaps just a 5-basis point premium. When green bonds were first introduced, our sense was that this premium — or "greenium," as it's called — could be much higher. That might still be the case in the future, given the early stage of the INR bond market.
