National, June 13, 2019: The co-living segment in India has the potential to grow into a $93-billion market however, changes must be made in the existing modus operandi to make this housing segment a success, reveals a consumer survey conducted by PropTiger.com, part of Elara Technologies Pte Ltd which also owns Housing.com, Makaan.com, and FastFox.com.
As per the survey, the quality of services, poor maintenance and lack of trust are the key issues that service providers in this segment must address before they are able to exploit the true potential of co-living as an investment option. The survey also highlighted that there are several gaps between demand expectations and supply even though service providers are currently adopting different strategies to offer various products meant for specific consumer categories.
What inspires them to adopt co-living?
Moved by financial prudence, people also pick co-living over other traditional mediums because of their desire to meet new people and to address security-related concerns, shows the consumer survey. Demand for co-living spaces is also increasing because of brand trust and ease of search, something PGs are not able to provide to the consumers.
How do they search?
The consumer survey conducted in May 2019, also reveals that those looking for co-living spaces start their search online, including Facebook groups. They are also influenced by various offline mediums to get to their final destinations. These include word-of-mouth recommendations and out-of-home signage.
What is the budget range?
There is a huge variance in the average budget people keep for co-living spaces. Respondent who took part in the consumer survey were willing to pay between Rs 4,500 to Rs 33,000 monthly, depending on number of beds in a room, the service quality, brand, and amenities they wanted.
The survey indicated that while price is a key consideration, consumers are willing to pay for better amenities in a co-living setup. The respondent said they were willing to shell out additional money for facilities such as air conditioning, washing machine & dryer, daily cleaning services and water purifier among others.
What is the tenure like and why do they leave?
Here, too, there is huge variance. While some of the respondents stayed for as long as five years in co-living spaces, others moved out within three months. Issues with roommates, unsatisfactory food offerings and unresponsive management are the push factors that force people to move out. People also move out because of pull factors such as the desire for independent living and safety of belongings. Consumers also switch to rental accommodations with friends since they are more comfortable living with people they know. They also move out when they start earning better and are thus able to shift to an independent and private place.
What needs to improve?
Lack of transparency in the renting process and service providers’ unresponsive approach towards maintenance facilities are some of the factors that act against this concept, leading to consumers moving to traditional housing options. The co-living segment would also perform better, shows the survey, if consumers were not obliged to pay security deposits, etc., that ultimately jack up the overall cost. Respondents who took part in the survey were of the view that opting for co-living spaces makes sense only if it amounts to lower monthly outgo as compared to independent rental options. Surprisingly, the benefits of community living are not an important factor yet in the decision making criteria although people are intrigued by the prospect. Additionally, consumers are very concerned about the person they room with and hence effective roommate matching tools become important.
About Elara Technologies Pte. Ltd.
Singapore-based technology services company Elara Technologies Pte. Ltd is the owner of Housing.com, PropTiger.com, Makaan.com. and FastFox.com. The company provides digital real estate marketing and transactions services.
Founded in 2012, Housing.com is India’s most innovative real estate advertising platform for developers, real estate brokers, home owners and tenants. The company offers the largest selection of verified listings in India through a trained team of data collectors, analysts and auditors. The one-of-a-kind Data Sciences Lab at Housing.com analyses a significant body of data to allow buyers and sellers to make intelligent decisions.
PropTiger.com is India’s leading digital real estate advisory firm offering a one-stop platform for buying residential real estate. Founded in 2011 with the goal to help people buy their dream homes, PropTiger.com leverages the power of information and the organisation’s deep-rooted understanding of the real estate sector to bring simplicity, transparency and trust in the home buying process.
PropTiger.com helps home-buyers through the entire home-buying process through a mix of technology-enabled tools as well as on-ground support. The company offers researched information about various localities and properties and provides guidance on matters pertaining to legal paperwork and loan assistance to successfully fulfil a transaction. Since inception, the PropTiger.com team has facilitated the sales of close to 25,000 homes worth nearly US$2.2 billion.
Makaan.com was acquired by Elara in May 2015, with a vision to establish a true “marketplace” in real estate. With consumer ratings on more than 30,000 sellers, credible listings data and real-time intelligence on property search, makaan.com has quickly emerged as the preferred partner for consumers looking to rent, buy or sell a home. With its unique post-paid advertising fees model and value proposition of no upfront fees for sellers, makaan.com has grown to have more than 45,000 active sellers with over 15000 active brokers in a short span of time. makaan.com offers its online consumers the maximum property options and has become one of the largest advertising platforms in online real estate in India with 1 million residential properties listed across the country.
Makaan.com was recently selected as a runner up in the Most Innovative Platform category at a global event in the ICMA event held at Vienna, Austria.
– As per the last study conducted by PropTiger.com, co-living has the potential to be a $93 billion market in India.
– The sector has total untapped demand of approximately 46.3 million beds, out of which 8.9 million is from student housing.
– For instance, in Noida the rental yield of housing meant for professionals is expected to generate between 5-7% while co-living spaces garner anywhere between 8-9% annually.
FastFox.com is an online-to-offline (O2O) brokerage firm that works in partnership with other brokers and landlords to list residential properties online for rental purposes.
FastFox.com has pioneered the revolutionary ‘Open House’ model for rentals in India, in which a house is open for viewing by home seekers for a scheduled period of time.
Corporate Comm India(CCI Newswire)