New Delhi [India], January 13 (ANI/SRV): TheHouseMonk, a Bangalore-based SaaS company building technology platforms for property managers of residential and commercial real estate, unveiled its 3rd edition of the Global Coliving Report. A change in business models and shift to a community-centred approach will be among the major themes of Coliving in 2023, according to the Global Coliving Report.
The report was published by TheHouseMonk, a SaaS company that helps Coliving and rental housing companies manage and grow their portfolio. The data was compiled through conversations the company had with its customers in the industry, its proprietary data platform and third-party sources.
Coliving is a growing sector within real estate across most parts of the world. It is fast emerging as an alternative to traditional residential leasing, PGs, and other forms of accommodation.
Speaking at the launch of the third edition of the report, Ajay Kumar, Co-Founder & CEO of TheHouseMonk, said, "Many predicted the demise of Coliving but rental yields of over 10 per cent and average tenancy period of 9 months show that it is alive and kicking."
Balaji Varadharajan, Co-Founder & MD of TheHouseMonk, said, "Occupancy rates above 95 per cent show that Coliving has bounced back. The industry is also experimenting with different models, be it franchises, build-to-rent, or leisure stays."
Some other highlights and excerpts from the same are listed below:
Coliving after Covid
While the pandemic threatened the entire shared economy, its impact on Coliving was much more as many companies shut down or merged with bigger firms. Some operators made the most of the crisis as they acquired premium properties at discounted prices.
As a result, Coliving has taken a new direction. Operators are focusing on resilience through reduced capital expenditure and lower break-even. Equally importantly, tenants --most of whom are millennials--are focusing on privacy and hygiene in the post-Covid world.
Be it Jakarta, Netherlands, or Los Angeles, the key factor driving Coliving continues to be affordability. With high inflation rates across the world, operators find themselves in the tough spot of cutting costs and meeting tenant expectations. Some Coliving operators in Europe are already passing on higher energy costs to tenants.
Hybrid business models
It may not be apparent to those outside the industry, but a tenant staying a weekend is different from one staying for a few months. Or as one operator said, "they are different businesses." Many operators are diversifying by catering to tenants for different periods, from as short as a weekend to over six months.
The definition of the Coliving business has also changed over the last couple of years. For one, many real estate developers are entering the space and building Coliving units. By constructing buildings designed for Coliving, they are able to provide a better experience to tenants.
But since Coliving is also a localised business, companies are expanding by acquiring others or by allowing franchisees to run Coliving units under their brands.
A recurring theme of the report is how a community is not just a feature, but a reason to choose Coliving. As the COO of a Hyderabad-based Coliving company said, "residents are also looking for a social circle as they are new to the city."
The current edition and earlier editions of Global Coliving Report can be accessed on the company's website.
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