Any explanation of the spatial distribution of economic activities and of enterprises’ choice of the site must include location factors. In some ways, location factors are a spatial precipitate of a company’s production variables. One location factor, notable lodging, has received little attention, despite its importance in location selection. The type and size of the premises will affect the company’s productivity. In this light, lodging should be viewed as a variable expense that varies by location. It is crucial in this decision-making process, particularly for businesses looking to rent office space. The businesses will construct their own facilities and companies looking to rent office space are limited by the availability in the real estate market. Location theory does not pay enough attention to the problem of supply and demand mismatch in the rental market or the search for office space via the rental market.
Co-living initiatives, as a sector that promotes itself as an economical alternative to sustainable community living, have yet to show their social and environmental benefits. If co-living projects prioritize global expansion and scalability over impact, there is a risk that they will contribute to societal issues like gentrification, segregation, displacement, and community/impact-washing, perpetuating the trend of loneliness, and increasing the percentage of unaffordable homes in our cities. The emphasis on fostering a feeling of community in Co-living generates an expansion of building operators’ usual obligations. Operators of co-living spaces should not only build infrastructures for a better living experience, but also physical and social frameworks in which relationships can thrive. Without this, there is a possibility that people may choose to spend their time in their own private rooms rather than using the communal spaces, which should be vast and well-equipped. Some operators have responded to the difficulty by employing tactics such as careful candidate screening, good community integration when onboarding new residents, a diverse events calendar, and effective feedback loops. Other operators have not followed these standards, and there is an increasing number that just does not.
The Thrive of co-living
The co-living sector, as an emerging market, has enormous potential to stimulate individual and collective actualization, transforming how we live and flourish in both urban and rural areas. Co-living providers can be at the vanguard of creating a sustainable mixed-use community that is both intergenerational and affordable. Co-living projects appear to be focusing more on obtaining 10,000+ units before 2025 than ensuring a high quality of life and welfare for their communities in a real estate business that concentrates on increasing shareholder profit and securing high occupancy rates. Co-living providers can redefine how our societies live in the twenty-first century with more accountability through impact indicators and human-centered design techniques. To quantify their impact and provide really creative shared living spaces for the prospering of their communities and neighbourhoods, co-living initiatives must continue to go above and beyond real estate industry requirements. Developers and operators of co-living spaces have the potential and obligation to do so, setting new industry standards that prioritize connection, community, welfare, and sustainability.
Co-living players develop in a way that benefits the communities that live in their spaces, not simply for their profit line, as invested observers and participants in the co-living sector. For co-living projects to succeed, we believe that comprehensive social value strategies are required. Customer satisfaction, occupancy levels, and retention rates are excellent indicators of demand for co-living products, brand loyalty, and business success. In their quarterly assessments and Key Performance Indicators, co-living programs might include wellbeing data and social return on investment. Co-living projects may be accountable to their most important stakeholders: the people who live in and around their spaces, by evaluating the human flourishing of their communities.
There are many issues that co-living tries to address, as well as reasons influencing the trend’s rise. The following are the primary and general reasons driving growth:
- High rents: Many city dwellers are rent-burdened, spending over 30% of their income on rent.
- Marriage and the establishment of a family have been postponed.
- Isolation from others.
- People have fewer savings and survive daily.
- Access to the things tenants can use that belong to the owner.
The following are some benefits of co-living:
- Living on a budget is possible.
- Payment for the use of the property.
- A community that has been carefully curated.
- The economic imprint is being reduced.
- Activation of the social life and community.
- The convenience of a private studio with shared amenities and common areas like a workspace, gym, concierge, laundry, lounge, and rooftop terrace.
- Experience increased productivity because of professional value addition.
People traveling to new locations are finding it challenging to find adequate housing within their budget because of soaring rental prices and limited monthly income. Co-living is a rental housing idea in which fully furnished residences are available to rent for people who want to live together without the conventional leasing limitations that apply to paying guest or hostel lodgings. A co-living space is like a serviced flat, except it allows for more customization. According to industry experts, it would play a critical role in fueling India’s real estate boom in the future.
The goal of co-living is to establish a community-centered setting that stimulates social interaction while simultaneously providing privacy in living arrangements. It nicely complements the millennials’ value-conscious temperament and plug-and-play mentality. While rental yields in India’s traditional housing market have been stagnant at 2-3 percent, co-living offers high returns of 6-8 percent while posing a low risk. With a focus on community, variable lease lengths, a lower security deposit, and no hassles with housekeeping, utility bill payment, maintenance, furniture, and fixtures, or lease contract renewal, co-living can be considered the best option.
Making use of unsold inventory
Although multiple properties are unoccupied across India’s major cities, there is a shortage of affordable flats in Tier 1 and Tier 2 cities. Unsold flats can readily be turned into shared or family rental facilities, which are typically set up by co-living businesses that lease the entire building.
Promoting developers’ active participation
The new wave of co-living allowed vast cities to tap into untapped real estate opportunities. Most players in the co-living space like to collaborate with developers who have inventory that can be used for rental accommodation in preferred locations. The co-living service providers manage developers’ property. The partnership is profitable since the rental money benefits both parties.
Technology to improve Quality of Life
From disorganized to well-organized, co-living addresses the rental industry’s most serious issues.
Co-living avoids the issues that plague the rental market, such as costly brokerage fees, low-quality housing, exorbitant rentals and deposits, and partial ownership. India’s widespread acceptance of co-living has given the rental housing market a considerable boost. Previously, with no government interference, this space was largely governed by local developers. Because of a lack of robust policies, unregulated Paying Guests (PGs) and student hostels arose, many of which lacked basic amenities and safety measures.
Also, co-living companies offer several advantages, besides contract completion and customer acquisition. In a normal co-living situation, a property manager is tasked with handling all the residents’ issues (ranging from cleanliness to faulty air conditioners). To date, the Indian rental housing business is still fragmented in most areas. However, the situation is always shifting. Because the section is disorganized, it is vulnerable to disturbances. The rental housing market offers limitless prospects, particularly for existing and emerging co-living organizations. While we are still in the early stages of expansion, the co-living industry is predicted to explode in the next few years. Because of this expansion, the tenant community’s requirements will be met, and India’s residential real estate will continue to be regulated.
Colive is one such space at prime locations in the major Indian cities, such as Bengaluru, Hyderabad, Pune & Chennai, to ensure the best co-living experience. If you’re looking for a place to call home, away from home, Colive is the best place to be at. Visit www.colive.com to see the wide range of Colive homes available in your preferred location in the city where you can live, laugh & grow.