This year has been really testing the globe, in all ways one could imagine. Major economies have come crashing down, giants suffering a major slump in their business. India has been hit by COVID-19 at a certain later stage compared to the more affected nations and is doing fairly better than the prior to containing this deadly pandemic, The COVID-19 pandemic is real and the entire world faces health & economic crisis.
Talking about the most important part of our nation & the future of India, the Millennials who are influencing the way Indians eat, shop, commute & live much like their global counterparts & how they are managing their stay in their work cities migrating from part of country. While in the current crisis, most PGs are asking their tenants to vacate their rooms, struggle for clean, hygienic, well maintained & safe stay continues. Co-living is the Best possible solution.
Suresh Rangarajan, the Founder and CEO of Colive, mentions despite the cities being under lockdown, co-living enquiries have gone up dramatically over the last month because the tenants today value clean, well-maintained, hygienic and safe residences more than ever. Many HR Managers from big IT companies have reached out seeking accommodation with Colive for their staffs to work from home effectively in our solid infrastructure of living spaces.
He believes that the Co-living industry will be a stronger wicket post the pandemic. Putting stress on his point, he recently revealed the 10 reasons why the industry will flourish. According to him, “Co-living industry will be the first to bounce back in the post-COVID days for the following reasons:
1. Rentals and residential rentals are always countercyclical and are more attractive to retail investors in tough times. With credit tightening, real estate purchases will get postponed and rental markets will flourish during such times.
2. Flexibility is key in such times of uncertainty. Purchase of illiquid assets will be the last on the retail customer’s mind. In fact, an 11-month lease contract will also look long, with people now opting for Co-living as a preferred option.
3. Tenants will move away from unorganized renting due to the uncertainty created by these players during the pandemic. Migrants will prefer branded and reliable operators for renting their apartments.
4. Focus, now, is on hygiene. Even millennials are now looking at clean and well-maintained places. “Clean homes” as a word is trending in Google searches compared to “Cheap homes” with tenants willing to pay a premium for hygiene.
5. Safety has become paramount in everyone’s mind in today’s world. Tenants want homes to have safety features that include the screening of guests, visitor management, emergency support in case of health issues and Co-living provides these to migrants, in fact, becoming their “ICE – In Case of Emergency” when they are staying away from home.
6. With an increased focus on WFH – Work From Home, tenants are looking for residences that have adequate infrastructure to support uninterrupted power & internet.
7. Residents are looking to stay closer to their workplaces more than ever now, as they begin to avoid office and public transportation due to the risks involved in opting for such facilities.
8. Social distancing has become a norm of our day-to-day life and customers are moving out of cramped facilities to avoid crowded rooms. Co-living facilities that have low density with at least 100+ sq ft of space per resident will gain popularity as tenants look to live in solo sharing or double occupancy rooms.
9. Corporates are now taking an active interest in where their employees are staying as it affects WFH productivity. They are evaluating Co-living as “Business Continuity Plan” as they provide a safe alternative to switch to seamless WFH during crisis times,
10. With developer’s unsold inventory piling up, and demand remaining stagnant, repurposing them into multi-family & Co-living homes are inevitable to ensure part of the interest and maintenance is covered.”
