Tata Housing Development Company Ltd.

Co-living /working fast gaining acceptance: Reports

Saturday 29th June, 2019

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Co-living /working fast gaining acceptance: Reports OUR BUREAU Bengaluru, June 28 Coliving and co-working segments are set to increase their footprint as market acceptance improves. The rising demand for shared renting will propel the market and offer a business opportunity of 1 trillion by 2023 with the capacity of 5.7 million beds, from the previous levels of %458 billion and 3.6 million beds in 2018, said a JLL-FICCI study Co-Living Reshaping Rental Housing in India. The demand from corporates, start-ups and entrepreneurs has resulted in a huge jump in the co-working space with regardto total office leasing. The share has risen to 12 per cent in the first quarter (January-March) of 2019 from 8 per centin 2018, said Co-Working Reshaping Indian Workplaces, the second report by JLL-FICCI It added that 6.9 million sq ft of cumulative space has been absorbed by coworking segment since 2017. Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Ltd, said, Today, millennials constitute a majority of India's work Millennials constitute a majority of workforce, and vibrant workplaces help them deliver better force. They are adaptive, but expecta drastic change to occur in the way people work. Agile workplaces and a vibrant ambience help the new workforce deliver better. Dutt, who is also the Chairman of FICC! Real Estate Committee, added that the concept has readily been accepted in the metros, and now tierII cities are also opening up to this new concept, including Indore, Ahmedabad, Bhubaneswar, Kochi and Jaipur. Juggy Marwaha, Executive Managing Director, JLL India, said, The co-working segment has come a long way in the country and is now riding a maturity curve and getting more established. Operators within this mature market now offer multiple formats to occupiers. These range from entire buildings dedicated to co-working spaces to built-to-suit co-working offices within the conventional workplaces. With the benefits of cost reduction and shared amenities, the segment provides a tremendous business potential to all de velopers and occupiers. Samantak Das, Chief Economistand Head of Research & REIS, JLL India, said, The shift in perception among millennials to sharing instead of owning has made the co-living concept popular. For all groups - corporate occupiers, start-ups, entrepreneurs and millennials renting offers flexibility and savings. Coworking offers cost savings of 20-25 per cent compared to traditional office space leasing. Coliving offers attractive returns; 2-4 times higher than traditional residential yield of 2-3 per cent. With these two innovative segments, Indian office and residential real estate is sure to grow bigger and better. However, stakeholders need to address existing challenges such as issues related to data privacy, the conservative approach of property owners and relevant supply observed across co-working and co-living, respectively, added Das. Vijay Rajagopalan, Head ALternatives Business, JLL India, said, Factors such as affordability convenience and community-led living will drive the segment's growth. While supply is still a challenge, the demand has made the market fascinating for organised operators, ownersflandlords and private equity investors.