What Is Co-Living? Its Market Is Thriving in India's Major Cities as Demand Soars

After being hit badly by the pandemic in 2020 and 2021, the co-living segment has now started seeing significant demand growth with the opening of offices and educational institutions post-COVID-19. Apart from this, India’s metropolitan cities are witnessing a remarkable surge in population, which is further giving rise to the thriving trend of co-living. Co-living offers an innovative solution to the housing needs of the growing urban population.

The co-living industry provides managed rental accommodations for working professionals and students. Property consultants Housing.com and Colliers India expect a significant increase in demand-supply as well as investments in this segment in the coming years.

Co-Living Trend in Metropolitan Cities

In India’s major metropolitan cities like Delhi, Mumbai, Bengaluru, Chennai and Kolkata, co-living has gained significant popularity. These cities, attracting job seekers, students, and young professionals, are experiencing an increasing demand for affordable and convenient housing options. Co-living spaces provide fully furnished rooms or apartments with shared amenities and common areas.

Rise in Demand

The demand for co-living accommodations in India’s metropolitan cities has witnessed a substantial increase in recent years. Reports suggest a surge of over 40 per cent in the past three years alone. This growth can be attributed to various factors driving the co-living trend.

Factors Fueling Co-Living Demand

Affordability: Rising property prices and escalating rental rates have made traditional housing options less affordable. Co-living provides a cost-effective alternative by allowing individuals to share the cost of rent, utilities, and amenities.

Convenience and Flexibility: Co-living spaces offer hassle-free accommodations with fully furnished rooms and shared amenities such as kitchens, workspaces, and recreational areas. Additionally, flexible rental agreements make it easier for tenants to adjust their living arrangements.

Social Interaction and Community: Co-living fosters a sense of community and social interaction. It provides an opportunity for individuals to connect with like-minded people, network, and establish a support system in a new city.

Lifestyle Amenities: Many co-living spaces offer additional perks like housekeeping, maintenance services, high-speed internet, and organized events, enhancing the overall living experience.

Cities with Maximum Demand

Among India’s metropolitan cities, Bangalore, Delhi, and Mumbai are witnessing the highest demand for co-living spaces. Bangalore, known as the “Silicon Valley of India,” attracts a large number of young professionals working in the IT sector. Delhi, being the capital and an education hub, is in high demand among students and working professionals. Mumbai, the financial capital, appeals to individuals from diverse industries seeking employment opportunities.

Nikhil Sikri, co-founder and CEO of Zolostays, said, “As India’s population surges and urbanization accelerates, co-living has emerged as a thriving housing solution in our metropolitan cities. The demand for affordable, flexible, and community-driven living spaces is at an all-time high.”

He added that co-living not only addresses the housing needs of the urban population but also fosters social connections and a sense of belonging. “We believe that co-living is reshaping the way people live and creating vibrant communities where individuals can thrive professionally and personally.”