The nomadic millennial is giving a major face-lift to India’s real estate sector. Thanks to the emerging concept of co-living, where a living space is shared among a group of people, the very idea of “home” is undergoing a transformation. These are initial days but shared living has a huge latent market. It has found favour among students and migrant working professionals. The term co-living may sound new but, as a concept, it has been around for ages. From the days of dharmashalas (monastical refuges) to Mumbai’s chawls (slums) in the 1960s and 1970s to the concept of paying guests and student housing/hostels, co-living has existed in India in myriad forms. But recently it has emerged as a new business model, trying to give a new dimension to India’s residential real estate market. Traditionally, India’s rental market has been extremely unorganised and fragmented. It is only in the last two years that tech-driven platforms have started to organise it. Consequently, venture capital funds and investors are eyeing this space with anticipation. Given the fact that millennials comprise 30% of India’s current population, the idea of co-living spaces are potentially staring at a huge business opportunity. India’s rental market has been extremely unorganised and fragmented.MagicBricks data suggests that in 2017, the rental real estate market was pegged at 10 million units and valued at $22 billion (Rs1.5 lakh crore). By 2023, this volume is expected to almost double to 18 million to reach a valuation of $41 billion. So, as a business proposition, co-living could prove to be lucrative in terms of scale and profit margins. However, there are few challenges along the way that need to be solved for the potential to be realised. Three primary hurdles on this front are:
Over the last 12 months, there has been a considerable increase in both the supply and demand for co-living on the MagicBricks platform. Co-living supply grew by almost 75% year-on-year in tier-1 cities in 2017 and, in 2018 the supply growth rate jumped to 110%. Cities like Chennai, Hyderabad, Kolkata, Pune, and Mumbai have witnessed a doubling of supply. In fact, in Chennai, Hyderabad, and Kolkata the supply has grown 200% last year. In cities like Noida, MMR, and Gurugram, both the supply and demand numbers are much higher than the national average share of co-living segment in overall rental property market. While these are positive signs for the co-living industry, it remains to be seen whether the model would prove its feasibility. Can the co-living platforms deliver a product and experience that would prompt users to move out from where they are living today and shift to these new spaces and in the process make a significant economic value? This sure will be interesting to watch out for. We welcome your comments at [email protected]. via Quartz https://qz.com/india/1536224/indias-co-living-sector-gets-a-tech-makeover-for-millennials/ TV Aerial Installations Wetherby
0 Comments
Leave a Reply. |
TV AERIALS LEEDSLeeds Aerials is a family run business, owned and operated by Gary Pearce. We pride ourselves in a fast, professional and affordable service with experienced engineers and fitters. ArchivesCategories |