Co-liv­ing can grow into a $93 bn mar­ket in In­dia: re­port

The realty seg­ment suf­fers from de­mand-sup­ply mis­match

The Hindu - - BUSINESS -

Or­gan­ised play­ers in the seg­ment are now gen­er­at­ing a com­bined rev­enue of ₹1,440 crore

The co-liv­ing seg­ment, an emerg­ing sec­tor in real es­tate, has the po­ten­tial to grow into a $93-bil­lion mar­ket in In­dia, a re­port by PropTiger said.

“The sup­ply by or­gan­ised play­ers in co-liv­ing is cur­rently lim­ited to over one lakh beds. As­sum­ing they earn ₹1.44 lakh per an­num per bed, or­gan­ised play­ers in this seg­ment are cur­rently gen­er­at­ing a com­bined ₹1,440 crore ($206 mil­lion),” the re­port said.

“If the ex­ist­ing de­mand­sup­ply mis­match is fixed, this seg­ment has the po­ten­tially to grow into a $93-bil­lion mar­ket,” it added.

Most of the pro­jected de­mand comes from stu­dents study­ing in dif­fer­ent col­leges and sin­gle work­ing pro­fes­sion­als across the county.

In In­dia, there are about 50,000 col­leges where over 31 mil­lion stu­dents study. Out of this, over 12.3 mil­lion stu­dents are mi­grants.

As per a sur­vey by PropTiger.com, to­tal oc­cu­pancy recorded in hos­tels within col­lege cam­puses across In­dia was only 3.4 mil­lion stu­dents, lead­ing to a de­mand­sup­ply mis­match of 8.9 mil­lion stu­dents. “This deficit for co-liv­ing spa­ces is cur­rently be­ing met by the un­or­gan­ised sec­tor, which in­cludes PG ac­com­mo­da­tion and rental houses,” the re­port said.

“In to­tal, In­dia had 37.4 mil­lion mi­grant pro­fes­sion­als earn­ing up to ₹10 lakh in 2018 who have com­pleted their higher ed­u­ca­tion be­tween FY12 and FY16.

“A ma­jor part of this pop­u­la­tion is still served by un­or­gan­ised rental op­tions,” the re­port said.

“The co-liv­ing sec­tor has to­tal un­tapped de­mand of ap­prox­i­mately 46.3 mil­lion beds, out of which 8.9 mil­lion is from stu­dent hous­ing,” it added.

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