Co-Living: A Smart and Profitable Move for Property Owners

As India's housing market evolves with new generations seeking flexibility and community living, co-living has emerged as one of the most lucrative and future-ready opportunities for property owners. With the rise in demand from students and young professionals, co-living is no longer a niche concept—it’s becoming a mainstream real estate strategy.

Siddharth Anand

5/23/20251 min read

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Why Should Property Owners Consider Co-Living?

According to a report published on Zee Business, co-living offers rental yields of 8–11%, far surpassing the 1–3% average yield from traditional residential properties. This makes co-living not only a high demand option for tenants but also a high return investment for landlords and developers alike.

Lower Costs for Tenants, Higher Returns for Owners

Anuj Puri, Chairman of ANAROCK Property Consultants, highlights that co-living spaces lower the average cost of living by 10–15% for tenants due to shared resources and economies of scale. Yet, they offer property owners a steady, higher than average income, as satisfied tenants often refer others, keeping occupancy rates high.

Built for the Needs of Modern Renters

As noted by Pratul Gupta, Co-Founder of Grexter, traditional PGs often fall short on essentials like ventilation and internet. Co-living steps in with fully furnished rooms, high speed internet, and communal spaces, giving tenants comfort and a sense of belonging. This translates into longer stays and lower tenant churn which is a big plus for owners.

Untapped Demand: A Golden Opportunity

Suresh Rangarajan, Founder & CEO of Colive, estimates there is a demand for 46 million beds in the co-living sector. Modern co-living properties offer not just shelter but a lifestyle, with gyms, game rooms, libraries, and high security features, all included. This growing demand makes co-living a compelling venture for anyone holding rental property.

Final Thoughts

For property owners looking to boost their rental income and stay ahead in a changing market, co-living is no longer optional, it’s essential. With a scalable business model, strong market demand, and tenant-friendly offerings, it represents a sustainable and future-proof real estate investment.

Source:
Manohar, Asit. Is Co-Living the Next Big Thing in Real Estate Sector? Zee Business, 2024. Link to article