Lifestyle

Co-living Results In Decent Cost Savings For Millennials

[ecis2016.org]

The co-living industry is expanding at a meteoric rate and expanding to new cities in India. The expansion is not limited to metros but to tier II and tier III cities also.

About 56 percent of the millennial population in the age group of 18-35 years preferred co-living spaces in a survey conducted by property consultant Knight Frank. These millennials are able to save quite a bit with co-living options as compared to other rental options like serviced apartment and fully-furnished residential units taken on rent.

Here is a look at the rental differences for a one-bedroom unit on a monthly basis in certain locations in Bengaluru:

Location Furnished Unit On Rent Paying Guest Accommodation Serviced Apartment Accommodation Co-Living Accommodation
Whitefield Rs 16,000 – 30,000 Rs 10,000 – 13,000 Rs 71,000 – 93,000 Rs 10,000 – 15,000
HSR Layout Rs 17,000 – 25,000 Rs 15,000 – 18,000 Rs 42,000 – 72,000 Rs 14,000 – 19,000
Marathahalli Rs 18,000 – 27,000 Rs 12,000 – 17,000 Rs 48,000 – 73,000 Rs 8,000 – 13,000
Koramangala Rs 27,000 – 35,000 Rs 13,500 – 16,000 Rs 75,000 – 1,05,000 Rs 12,000 – 17,000

Source: Knight Frank Report

The charges for paying guest accommodation and co-living accommodation options in the above table in on a per-person basis.

Other than plain staying costs, there are expenses incurred on everyday basis like internet connection, laundry, cleaning, repairs etc. IF these costs are added, then the overall costs are higher then what is shown in the table above.

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Here is a look at what the overall costs are:

Furnished Unit On Rent Paying Guest Accommodation Serviced Apartment Accommodation Co-Living Accommodation
Whitefield Rs 24,000 –  31,000 Rs 12,000 – 15,000 Rs 71,000 – 93,000 Rs 10,000 – 15,000
HSR Layout Rs 25,000 – 33,000 Rs 17,000 -20,000 Rs 42,000 – 72,000 Rs 14,000 -19,000
Marathahalli Rs 26,000 – 35,000 Rs 14,000 – 19,000 Rs 48,000 – 73,000 Rs 8,000 – 13,000
Koramangala Rs 35,000 –  43,000 Rs 15,500 – 18,000 Rs 75,000 – 1,05,000 Rs 12,000 – 17,000

Source: Knight Frank Report

Millennials not only find it cost effective to live in co-living set up but also get a whole host of advantages like numerous facilities and social environment in a co-living set up.

There are a number of co-ling space operators who charge for one entire session of a college or a university of about 10-11 months instead of quoting per month charges.  Such operators run this fee model in cities like Pune, Bangalore Noida, and Greater Noida that have large student population. While the rental for occupants come out to be lower in co-living options, the rental yields for owners or operators of co-living spaces is higher. The rental yield in a co-living space in Noida Sector 125 for students of a will be 8-9 percent while housing for professionals will be in the range of 5-7 percent, according to a report by Proptiger.com. There is a requirement of 8.9 million (89 lakh) beds for student housing in the country, according to the portal.

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Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Debora Berti

Università degli Studi di Firenze, IT

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