“It’s a fixed rental model arrangement with NDR, Gesture will build and operate the facility for them,” said Sriram Chitturi, Founder, Gesture.
Gesture is also ramping up presence in the segment and plans to roll out 20,000 beds over the next decade in rented living space. The firm that currently has 3150 beds operational and is in talks with investors and landlords to build more such properties. “”The pandemic has impacted the demand for coliving space but it is expected to pick up in future as people look for working closer to the office,” said Chitturi.
The emergence of co-living and rental accommodation start-up has redefined the concept of urbanization in India. As Work From Home(WFH) culture takes precedence, co-living start-ups are also gearing up with designs that cater to the new normal. This ensures business continuity for companies while employees are encouraged to work from the comforts of their living instead of having to move to their hometown.
Many organizations are collaborating with startup co-living companies to provide fine rental accommodation for their employees so that they don’t have to worry about going back to their hometowns. “We expect demand to pick up post June as companies ramp up presence in the offices,” he said.
Co-living is a modern concept popular in metropolitan cities where like-minded people live in the same house with common kitchen, lounge, work area, etc. with shared and private rooms.
The Indian co-living market is at a nascent stage and has only a few organised players like Zolo, Nestaway, and Olive.
However, the trend is catching up in the major cities as the housing market begins to lean away from the proprietorship and towards a service model. Rents for a shared living accommodation range from Rs 6,000 to Rs 20,000 a month, while for individual living it can range between Rs 18,000 to Rs 25,000.
As per the reports by Federation of Indian Chambers of Commerce & Industry ( FICCI ) co-living and rental space in India is set to grow into a1 trillion market opportunity by 2023.The expected Compound Annual Growth Rate of co-living market in the country is 17% in the next five years.
The report indicates that the supply of beds by organised co-living players is expected to increase to about 541,000 across the top seven cities by 2023, with Delhi and Bengaluru accounting for more than 50% of this cumulative capacity.