Co-living can grow into a $93 bn market in India: report
The realty segment suffers from demand-supply mismatch
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.