India's co-living sector to see one million beds by 2030, says Colliers India

India's co-living sector is poised to experience significant growth, with the inventory set to reach one million beds by 2030, up from around 3,00,000 beds currently, according to a report by Colliers India. This surge in demand is driven by rapid urbanisation and migration to cities, particularly among students and young professionals who seek flexible, affordable, and hassle-free housing options. The market size is expected to grow from Rs. 4,000 crore (US$ 465 million) to nearly Rs. 20,000 crore (US$ 2.33 billion) in 2030. The report highlights that the current demand for co-living beds is estimated at 6.6 million, projected to rise to 9.1 million by 2030. Chief Executive Officer at Colliers India, Mr. Badal Yagnik, noted that the significant upside potential is expected to attract more investors and operators, with co-living penetration rates improving from 5% to over 10% by the decade's end. The sector also expands into tier-II cities such as Indore, Coimbatore, Chandigarh, Jaipur, Visakhapatnam, and Dehradun.
A key opportunity for the co-living sector lies in addressing the demand-supply gap in student housing. The report indicates that a sizeable proportion of higher education students in India are outstation students requiring accommodation near their institutions. During FY22, colleges and universities could cater to approximately four million students, only about 33% of the current estimated student living accommodation demand 12 million. This gap presents a substantial opportunity for student housing-focused operators to provide quality, affordable accommodation, especially as more students migrate to cities for higher education. The report underscores the need for innovative housing solutions to support the evolving needs of India's student population.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.