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Hans India
08-05-2025
- Business
- Hans India
Co-Living Demand Surges in Hyderabad; Rentals Cheaper Than 1BHKs
The co-living market in Hyderabad is witnessing a notable rise in demand, reflecting national trends where organized co-living supply is projected to reach around one million beds by 2030—up from the current 0.3 million. With Hyderabad offering a 25–35 per cent rental advantage over traditional 1 BHK housing, the city is emerging as a significant hub for co-living expansion, especially among students and professionals. In Hyderabad, single occupancy co-living rentals currently range from Rs 10,500 to Rs 17,300 per month, compared to Rs 14,000 to Rs 26,500 for standard 1 BHK units. The city joins Bengaluru, Mumbai, and Delhi NCR as a key market with strong rental arbitrage and increasing adoption of shared living formats. At the national level, the organized co-living sector, currently catering to just 5 per centof potential demand, is expected to triple its stock by 2030. By then, penetration is forecast to cross 10 per cent, as the total co-living bed requirement grows to 9.1 million from 6.6 million in 2025, driven by urban migration of youth aged 20–34 seeking rental convenience and affordability. According to Colliers India, the estimated market size of the co-living sector is set to grow fivefold, from Rs 40 billion in 2025 to nearly Rs 200 billion by 2030. Capital inflows into the sector already exceed USD 1 billion since 2015, with operators favoring asset-light lease models to scale operations quickly. 'India's co-living sector is entering a new phase of growth, underpinned by strong demographic fundamentals and a growing preference for flexible, community-centric living. With rapid urbanization and a high proportion of migrant population, including students & young working professionals, the demand for organized rental housing, especially co-living, is likely to witness strong growth. Significant upside potential is anticipated to provide thrust to investor participation and operator expansion in the co-living sector. Resultantly, we expect market penetration to double from ~5 per cent currently to over 10 per cent by 2030. In fact, the coming years will be crucial in shaping a more structured, scalable, and investment-ready co-living ecosystem in India.' said Badal Yagnik, Chief Executive Officer, Colliers India. Currently, most co-living models in India are based on leasing agreements with property owners lasting 3–9 years. In this setup, operators handle day-to-day operations and sublet units to tenants. Other models include management/revenue sharing and franchising, allowing flexible expansion strategies, especially into Tier-II cities. In cities like Mumbai, co-living beds are priced between Rs 15,200 and Rs 27,500 per month, while 1 BHK rentals range from Rs 19,000 to Rs 42,000. Similarly, Delhi NCR and Bengaluru show rental gaps of 25–35 per cent, making co-living a cost-effective alternative across metros. The segment's growth is also being fueled by Purpose-Built Student Accommodation (PBSA), a sub-category witnessing sharp demand due to a shortage of campus housing. While the student population continues to grow, available university hostel beds cater to only around 4 million of the estimated 12 million demand in 2025. This leaves a gap of approximately 8 million beds, presenting a lucrative opportunity for private PBSA operators. India's gross enrollment ratio in higher education stands at 28.4 per cent, with 43.3 million students currently enrolled. A large share of these are outstation students seeking quality housing near academic institutions, especially in urban centers such as Hyderabad, Chennai, Jaipur, and Dehradun. 'The co-living model offers efficient housing solutions at scale, with integrated services like utilities, housekeeping, and internet bundled into monthly rent. These features align with the expectations of mobile urban youth,' noted Vimal Nadar, National Director, Research at Colliers India. 'As institutional investors grow more familiar with the returns profile—typically around 10 per cent versus 2–5 per cent in traditional rentals—we expect continued capital deployment and deeper market penetration.' By 2030, analysts anticipate that organized co-living operators will not only grow in scale but also expand their geographical footprint. Emerging Tier-II cities like Indore, Visakhapatnam, and Coimbatore are already drawing investor attention.
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Business Standard
08-05-2025
- Business
- Business Standard
India's co-living sector to see 1 mn beds by 2030, says Colliers India
The co-living segment inventory is set to reach one million beds by 2030 in India, up from around 300,000 beds, on rising demand and rapid migration to cities, according to a report by Colliers India. This comes after the segment faced a temporary lull in demand during the Covid pandemic. 'The resurgence of the sector is being fuelled by rapid urbanisation and migration to cities, especially amongst students and young professionals who continue to seek flexible, relatively affordable, and hassle-free housing options,' the report added. According to the report, the current demand for co-living beds is estimated to be 6.6 million and is forecast to reach 9.1 million by 2030. It adds that the Rs 40 billion Indian co-living market can grow over five times and reach close to Rs 200 billion by 2030. Commenting on the same, Badal Yagnik, chief executive officer at Colliers India, said that with rapid urbanisation and a high proportion of migrant population such as students and young working professionals, the demand for organised rental housing, especially co-living, is likely to witness strong growth. Also Read 'Significant upside potential is anticipated to provide thrust to investor participation and operator expansion in the co-living sector,' he added. With the inventory set to reach close to one million beds by 2030, co-living penetration rates are expected to improve from 5 per cent to over 10 per cent by the end of the decade. While leading operators continue to consolidate their presence in the tier-1 cities, the report suggests that the segment is also witnessing a steady expansion into select tier-2 markets such as Indore, Coimbatore, Chandigarh, Jaipur, Visakhapatnam, and Dehradun. A significant opportunity for the segment remains tapping the demand–supply gap in student housing. 'While co-living facilities are targeted at both students and migrant working professionals alike, student housing is more nuanced and is an important sub-segment within the sector,' the report stated. A significant proportion of higher education students enrolled in India are outstation students who require accommodation facilities near their institutions, presenting opportunities for student housing-focused operators to foray into the market with housing solutions that can alleviate supply-side constraints and support the evolving needs of India's student population. According to the All-India Survey on Higher Education (AISHE), during FY22, accommodation facilities provided by colleges and universities could cater to approximately four million students—around 33 per cent of the current estimated student living accommodation demand at 12 million. 'The acute demand–supply gap necessitates the need for quality, affordable accommodation, especially as more students migrate to cities for higher education,' the report added.
Hans India
08-05-2025
- Business
- Hans India
Co-living inventory in India to reach 1 million beds by 2030: Report
New Delhi: India's co-living market is on an upward growth trajectory, projected to reach close to 1 million beds by 2030, a report showed on Thursday. Currently estimated at around 0.3 million beds in the organised market, the demand has rebounded strongly in recent years and operators gearing up for expansion across tier 1 and select 2 cities, said the report by Colliers India. The report stated that the resurgence of the sector is being fuelled by rapid urbanisation and migration to cities, especially amongst students and young professionals who continue to seek flexible, relatively affordable, community-driven, and hassle-free housing options. Following a temporary lull during the pandemic, the demand for co-living is regaining momentum, driven by the inherent strengths of the sector. Evolving demographic patterns, education and employment-driven urban migration, rising disposable incomes, and a growing preference for fully managed rental accommodations are all contributing to a sustained rise in demand for organised co-living spaces. Of the estimated 50 million migrant population in urban India aged between 20 and 34 years in 2025, the demand base for organised co-living sector in terms of beds is currently estimated at 6.6 million. Given the intrinsic nature of demand, leading operators are in an expansionary mode. As the co-living inventory is set to reach close to 1 million beds by 2030, penetration rates can significantly improve from 5 per cent to over 10 per cent by the end of the decade, the report mentioned. 'India's co-living sector is entering a new phase of growth, underpinned by strong demographic fundamentals and a growing preference for flexible, community-centric living. With rapid urbanisation and a high proportion of migrant population, including students and young working professionals, the demand for organised rental housing, especially co-living, is likely to witness strong growth,' said Badal Yagnik, Chief Executive Officer, Colliers India. Significant upside potential is anticipated to provide thrust to investor participation and operator expansion in the co-living sector. Overall, co-living spaces offer a more affordable alternative across major Indian cities. As of April 2025, a comparison of rents between single-occupancy co-living facilities and traditional 1 BHK units indicates a rental arbitrage of up to 35 per cent, said the report.
Time of India
08-05-2025
- Business
- Time of India
India's co-living sector poised for massive growth; inventory set to triple by 2030
Live Events India's co-living sector is witnessing a remarkable resurgence, fuelled by urban migration, shifting lifestyle preferences, and increasing demand for flexible, community-driven housing. According to industry estimates, the organized co-living inventory is projected to surge from approximately 0.3 million beds in 2025 to nearly 1 million beds by 2030 — a threefold increase over five boom is driven by a growing young urban population, predominantly students and working professionals aged between 20 and 34, who are migrating to cities in pursuit of education and employment opportunities. The total demand for co-living beds is estimated at 6.6 million in 2025 and is expected to rise to over 9 million by market penetration of co-living — currently at about 5% — is forecasted to double and exceed 10% by 2030. 'India's co-living sector is entering a new phase of growth, underpinned by strong demographic fundamentals and a growing preference for flexible, community-centric living,' said Badal Yagnik, CEO, Colliers India. 'The coming years will be crucial in shaping a structured, scalable, and investment-ready co-living ecosystem.'The co-living market, pegged at INR 40 billion in 2025, is expected to grow fivefold to INR 206 billion by 2030. Rising demand along with supply shortfall in student housing, are creating lucrative opportunities for developers, investors, and co-living India's urban rental market is seeing a shift, as co-living offers better value, flexibility, and convenience compared to traditional rentals. Co-living rents, typically inclusive of utilities, maintenance, and amenities like Wi-Fi and housekeeping, present a rental arbitrage of 20–35% across major cities such as Bengaluru, Mumbai, Delhi NCR, and Hyderabad . For instance, in Bengaluru, average co-living single-occupancy rentals range from INR 11,700 to 23,700 per month, compared to INR 15,500 to 36,500 for traditional 1BHK sector's evolution has also sparked strong investor interest. Co-living operators have raised over USD 1 billion since 2015, with institutional investors viewing the sector as a high-return asset class, offering yields of up to 10% — significantly higher than the 2-5% typical returns of conventional residential real estate. This capital influx is enabling operators to scale rapidly and improve service offerings.'Robust growth coupled with significant untapped potential presents the co-living sector as an increasingly attractive asset class within real estate contours in India,' said Vimal Nadar, National Director & Head of Research at Colliers India. 'The sector is now expanding beyond Tier I cities to Tier II markets like Indore, Jaipur, Coimbatore, Chandigarh, Visakhapatnam and Dehradun.'To meet growing demand, co-living operators are leveraging three key business models: the lease model (favored for its asset-light scalability), the management/revenue-sharing model (where operators share income with property owners), and the franchise model (enabling expansion via local partnerships). Most operators offer tech-enabled platforms bundling services like housekeeping, maintenance, and laundry, with food often billed emerging sub-segment within co-living is Purpose-Built Student Accommodation (PBSA), which addresses the unique needs of India's vast student population. Along with a Gross Enrollment Ratio (GER) of 28.4%, India had over 43 million students in higher education as of FY 2021-22, many of whom are outstation students requiring quality the demand for student beds stands at around 12 million. However, colleges and universities can only cater to approximately 4 million students — around 35-40% of the demand. The remaining 60-65% face a lack of suitable living options in 2025. This stark mismatch highlights the pressing need for well-managed, affordable student-centric are now partnering with educational institutions to set up PBSA facilities, which, although capital-intensive, offer greater operational control and long-term revenue streams. This shift is expected to play a pivotal role in bridging the student housing gap while enhancing the maturity of the co-living strong fundamentals, rising investor confidence, and evolving consumer expectations, India's co-living sector is poised for a transformation. By 2030, the sector will not only triple its stock but also cement its position as a key component of the country's rental housing ecosystem.
Hindustan Times
08-05-2025
- Business
- Hindustan Times
Coliving segment to add 1 million beds by 2030: Colliers report
The coliving segment is set to add one million beds by 2030 in India, up from around 0.3 million beds currently, according to a report by Colliers India. The coliving segment is set to add one million beds by 2030 in India, up from around 0.3 million beds currently, according to a report by Colliers India. (Representational Image)(AI-generated image made with Gemini) The sector's resurgence is being fueled by urbanization and migration to cities, especially amongst students and young professionals who continue to seek flexible, relatively affordable, community-driven, and hassle-free housing options. Currently, the coliving sector has an inventory of around 3 lakh beds, making up only about 5% of the total penetration. As the inventory is set to reach close to 1 million beds by 2030, penetration rates can significantly improve from 5% to over 10% by the end of the decade, the report said. Coliving penetration represents the ratio of organized inventory (in terms of beds) and the demand for coliving accommodation within the target population, primarily urban migrants, including students and young working professionals, the Colliers report said. As of 2025, the demand for coliving beds is estimated to be 6.6 million and is forecasted to reach 9.1 million by 2030, it said. The demand is estimated by projecting the urban migrant population aged 20–34, primarily relocating to urban areas for employment and studies. 'Significant upside potential is anticipated to provide thrust to investor participation and operator expansion in the co-living sector. Resultantly, we expect market penetration to double from 5% currently to over 10% by 2030. In fact, the coming years will be crucial in shaping a more structured, scalable, and investment-ready co-living ecosystem in India," said Badal Yagnik, Chief Executive Officer, Colliers India. Also Read: 53rd GST Council meeting: Co-living firms welcome proposal to exempt GST on accommodation services Coliving provides a rental cost advantage of 20–35% compared to traditional rental options Colliers said that as of April 2025, a comparison of rents between single-occupancy coliving facilities and traditional 1 BHK units indicates a rental cost advantage of up to 35%. In Bengaluru, monthly rents for coliving spaces range from ₹ 11,700 to ₹ 23,700 for single occupancy, while 1BHK units cost between ₹ 15,500 and ₹ 36,500, it noted In Mumbai, coliving rents are around ₹ 15,200 to ₹ 27,500 per month, compared to ₹ 19,000 to ₹ 42,000 for a 1BHK. In Delhi-NCR, coliving rents range from ₹ 11,300 to ₹ 24,000, whereas 1BHK rentals are between ₹ 15,000 and ₹ 37,000 per month, the report said. "Leading operators have collectively raised capital to the tune of $1 billion since inception (2015 onwards), underscoring investor confidence and long-term growth potential. Institutional investors, too, are increasingly viewing coliving as an attractive asset class, with returns closer to 10%, significantly higher than the 2-5% yield of traditional residential assets," the report said. Also Read: Embassy Group's hospitality arm Olive planning to raise $20 million, onboard strategic investor Demand-supply gap in student housing pose opportunities within the coliving sector While coliving facilities are targeted at both students and migrant working professionals alike, student housing is an important sub-segment within the coliving sector. A significant proportion of higher education students enrolled in India are out-of-station students who require accommodation facilities near their institutions, Colliers said. As per the All India Survey on Higher Education (AISHE), during FY2021-22, accommodation facilities provided by colleges and universities could cater to approximately 4 million students, merely 35-40% of the demand and resulting in a significant demand-supply mismatch. As of 2025, the demand for student-living accommodation is estimated to be around 12 million. "The acute demand and supply gap necessitates the need for quality, affordable accommodation, especially as more students migrate to cities for higher education. It also presents immense opportunities for student housing-focused operators to foray into the market with professionally managed, student-centric housing solutions that can alleviate supply-side constraints and support the evolving needs of India's student population," the report added.
