Is India's Co-living Inventory Set to Reach 1 Million Beds by 2030?

New Delhi, May 8 (NationPress) The co-living sector in India is poised for remarkable growth, with projections indicating it could approach 1 million beds by the year 2030, according to a recent report released on Thursday.

Currently, the organised market comprises approximately 0.3 million beds, and there has been a significant rebound in demand in recent years. Operators are preparing to expand their presence in tier 1 and selected tier 2 cities, as highlighted in the report by Colliers India.

The resurgence of this sector is primarily driven by rapid urbanisation and the migration of individuals to urban areas, particularly among students and young professionals who are in search of flexible, affordable, community-oriented, and hassle-free housing solutions.

Despite a temporary slowdown during the pandemic, the demand for co-living arrangements is gaining traction, bolstered by the sector’s inherent advantages.

Shifts in demographic trends, urban migration motivated by education and employment, increasing disposable incomes, and a rising preference for fully managed rental accommodations all support a sustained increase in the demand for organised co-living spaces.

By 2025, it is estimated that 6.6 million beds will be needed for the approximately 50 million migrants aged between 20 and 34 in urban India.

Given the persistent demand, leading operators are actively pursuing expansion. As the co-living inventory approaches 1 million beds by 2030, penetration rates are expected to rise significantly from 5 percent to over 10 percent by the end of the decade, as per the report.

“The co-living sector in India is entering a new growth phase, supported by robust demographic fundamentals and an increasing preference for flexible, community-focused living arrangements. With rapid urbanisation and a substantial migrant population, including students and young professionals, the demand for organised rental housing, particularly co-living, is anticipated to experience strong growth,” remarked Badal Yagnik, Chief Executive Officer of Colliers India.

There is significant potential for further growth, which is expected to attract more investor interest and operator expansion within the co-living space.

Overall, co-living facilities present a more cost-effective option across major Indian cities. A comparison of rental prices between single-occupancy co-living units and traditional 1 BHK apartments indicates a potential rental savings of up to 35 percent by April 2025, as noted in the report.