Co-living upsurge among millennials and GenZ is renaissance of luxury living
A recent survey by Housr revealed that over 60% of respondents prioritise a fully-managed space that includes all necessary amenities as their top luxury.
Thursday March 30, 2023,
5 min Read
As demand for co-living spaces grows with time, there is a perceptible shift in millennial expectations of what these spaces entail.
From being traditionally restrictive bachelor pad hostels or even PG accommodations that served the purpose of board and lodging, the new co-living spaces provide an unprecedented level of sophistication and luxury to millennial living. They are fully-furnished, well-maintained spaces that can be called their own without ownership hassles. With serviced rooms and all thinkable amenities, the new-age co-living spaces offer the combined experience of high-end boutique hotels juxtaposed with a warm and homely setting.
Many view this concept as an upscaled version of student living for people who have recently stepped into their professional lives. The mindset shift is what makes this a disruptive level change in real estate, as new-gen millennials seek a more refined way of living with opportunities to interact without overbearing scrutiny and nosy neighbours.
A recent survey by Housr reveals that over 60% of respondents prioritise a fully-managed space that includes all necessary amenities as their top luxury. This suggests that for millennials, the experience and convenience of a well-managed space are more important than the cost, and accessibility is a key factor in their housing preferences.
Also, according to a report by FICCI in collaboration with JLL, the luxury co-living market in India is expected to grow at a compound annual growth rate (CAGR) of 17.2% from 2019 to 2024, driven by the growing demand for affordable and hassle-free accommodation options.
The report also says that the supply of beds by organised co-living players is expected to increase by more than 5X to about 541,000 beds by 2023. Delhi-NCR and Bengaluru will account for more than 50% of this cumulative capacity. In response to this strong expansion in supply, demand will grow in tandem to about 470,000 beds. Also, 90% of millennials staying in co-living accommodation said that they were satisfied and would continue to stay in organised co-living spaces according to the JLL survey.
Bridging the gap
A factor that may have pushed the demand and expectations for these co-living spaces is the yearning for travel and mobility among GenZ before they consider settling down. Hence, these franchise-modelled, co-living and rental spaces often provide the most convenient way to lead a nomadic lifestyle for people starting their careers in a different city, planning to live independently, or working remotely while experiencing living in different cities.
With growing disposable incomes, consumers don’t want to compromise on comfort or luxuries, and modern co-living spaces can meet this demand. Sensing and perhaps, fueling the yearning for this new luxurious lifestyle, a few new-age co-living startups aim to offer their residents a premium lifestyle experience in serviced and furnished spaces.
Facilities in many of these new co-living condos include:
● Premium Interiors
● Three-tier security solutions
● App-enabled servicing and house-keeping
● Entertainment and social zones for community interactions
Perhaps, the key differentiating factors in these new-age homes lie in uninterrupted hi-speed Wi-fi connectivity, laundry services and professional housekeeping services, gaming zones, vending machines and cafeterias—all of which offer the combined experience of shared living while ensuring privacy, comfort and convenience as opposed to hostels of yore.
In the premiere of these companies, the services are mobile-operated via apps offering one-click resolutions to any day-to-day problems. In addition to the above, these properties are often located in prime locations and well-connected neighbourhoods, implying that travelling to work or getting access to hangout spots is effortless.
Another enticing factor that gives a peak into ease of living is that one can book site tours online before making a final decision of moving in. Not only is the entire booking process online, but related paperwork and lease agreements are also seamlessly managed virtually removing the hassles of back and forth with brokers!
Given the comforts and sleekness of the apartments and the entire moving-in process, the properties are not just attracting millennials but also smaller family units. Recent records show that many nuclear families and young couples find living in such spaces quite fulfilling. With state-of-the-art amenities and physically and virtually well-connected networks, couples working remotely want to balance work with travel without the hassle of worrying about housekeeping or arranging amenities for themselves.
Where is this headed?
The disruption caused by changes in the shared living market is most definitely here to stay as traditional substandard accommodation is no longer acceptable to individual professionals or nuclear families setting up houses.
Co-living spaces are reimagining the way people live together and pioneering a revolution in urban living. Their design-led approach provides unique and bespoke spaces for people to live, work and relax in. As the co-living spaces combine community-inspired social spaces, smart technology, enhanced services and comfortable private housing.
As millennials are pro-mobility, the demand for such spaces is only likely to grow with time. The digital nomads of the world have had a taste of next-generation shared living and are unlikely to give it up. Such spaces will be the future of living as they allow for an exciting and hassle-free way of being grounded and yet agile, enabling privacy and yet creating communities.
(Deepak Anand is the Co-founder and CEO, Housr—an aggregator of properties which offers premium co-living spaces enabled by tech.)
Disclaimer: This story has been updated to reflect a correction in the author's designation.
Edited by Kanishk Singh
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)