In recent years due to increasing student and young working professional population in India, the need and demand for rental housing has gone up at a fast pace. However, these days a new concept in rental housing, popularly known as Co-living spaces has emerged as a boon for those who want to enjoy all the benefits of well-developed rental home by paying much less amount.
A co-living rental space is that residential unit which is furnished with all the basic amenities and where a group of 2-3 young professionals or students can live together sharing the cost of rent as well as food and maintenance.
According to a real estate expert, “Co-living rental unit not only help different individuals to interact together and make new friends in a new city but also save them from various restrictions of a regular rental home or Paying Guest accommodation (PG).”
Co-living Rental Housing: Demand in Indian Realty Market
Because of ample facilities and shared expenses, the demand of Co-living rental housing has increased in the Indian realty market. There are many property buyers who are just buying a home to convert it in a co-living space to earn better rental income. On the other hand, looking at the tenant point of view, a Co-living space provides all the facilities to the inhabitants without paying much on maintenance and rental amount. This is one of the major reasons behind the increasing popularity of this new rental housing concept.
Co-living rental housing units first became popular in tier-1 cities like Pune, Bengaluru, Gurugram and Mumbai, but now the focus has also shifted towards Tier-II cities like Jaipur, Lucknow, etc. as these cities are seeing a surge in student and employee population.
Co-living Rental Housing: Benefits for Property Owner
Real estate experts suggest that if a property owner wants to convert their home into co-living housing, then they can garner many benefits from it. Keeping in mind the need and demand of such homes in the current scenario, a property owner can not only earn good rentals but can also pay the EMIs of the loan taken by the bank to purchases that unit. Other benefits include:
- Unusual Demands of the tenants.
- Hectic schedules of tenants.
- You can provide additional facilities to tenants such as entertainment, safety, and security, laundry and repairs and maintenance, without spending much.
- You can get tenants easily.
- A Property owner can easily look after the property.
- With changing trends in the real estate market, a co-living rental income is least affected.
Co-living Rental Housing: Low Maintenance Cost than Regular Rental Homes
A Co-living Rental Housing is par better than regular rental homes of PG when it comes to maintenance cost. A property buyer doesn’t have to invest much in while setting up such units. But then, a careful approach is necessary if you want to utilize your property as a co-living space. For instance, in order, to set up a co-living space, you need to have proper permission from the RWA of the housing society. Moreover, experts suggest that in the future, the demand for such co-living space will also increase amongst single senior citizens too.