It’s not just house-hunters. Co-living has enthused developers and brought some sunshine into a dreary real estate market because of demand for well-designed living spaces and the higher rental yield they bring compared with conventional renting. Unsurprisingly, the market is buzzing with several startups.12

Unlike in other metros, availability of living spaces is not a problem in Delhi-NCR because many builders have unsold inventory. The pickup in demand for co-living spaces is music to their ears. And at a rental yield that is 3-4% higher than rental housing, it is also making financial sense. 

The use of technology to provide an interface between tenants and managers is what the co-living business model hinges on. Housr, which was founded last year, says its vision is to “change the way millennials live”. Its app connects tenants with each other, tells them the breakfast menu and curates events for the day. Similarly, at Coho’s properties, furniture and appliances come with a bar code; in case of a problem, one has to just open the app, scan the barcode and raise a complaint. 

• 1. Coho and Nestaway (in Gurgaon) were among the early starters. The market now has players like OYO LIFE, Zolostays, Housr and Ziffy Homes. In Gurgaon, the smaller facilities with 3-4 rooms are based in areas such as DLF 1, 2, 3, Sushant Lok-1, and sectors 40, 43 and 56. The bigger facilities have rented out entire buildings. Housr, for instance, operates from Tulip Purple in Sector 69 and is planning another at Ambience Island. It is also starting a co-living space in Noida. Rents range between Rs 8,000 and Rs 40,000 a month depending on the location and sharing options, and cover essentials like laundry, housekeeping, WiFi, gym and repairs.
• 2. Anarock sees the rent yield being a big advantage for companies that are looking for prime spaces for their co-living establishments because the current average yield is only 1-3% in residential properties. Anarock research also shows co-living spaces could bring down average cost of living by as much as 10-15% with optimal real estate utilisation and economies of scale. Some frontline developers that are entering the space in Gurgaon, Delhi and Mumbai include Salarpuria, Mahindra Lifespaces, Puravankara and the Sattva Group. “We are in talks for build-to-suit inventory in the next 24-36 months for Housr with developers in Gurgaon. This will give them a higher yield and the ability to create a highly investor-friendly product,” says Housr’s Anand.