What is Behind the Rise of Co-Living?
Posted by Colliers on 1st December 2022 -
Co-living has been a space to watch for investors over recent years, but it is now finally proving to onlookers that it is a successful market sector on the rise, but what is happening on the ground?
The experience in our team means we have been involved in over half of market funding transactions for co-living to date. In this blog I’ll look at the current landscape and the fundamentals behind it.
What is co-living?
A co-living scheme is a style of purpose-built residential property, mostly comprising smaller self-contained studio apartments, similar to those found within the Purpose Built Student Accommodation (PBSA) market. They are usually located within prime locations with London, Manchester and Sheffield all seeing schemes come to fruition or under development. Co-living blocks are professionally managed and offer a high level of amenity space (including co-working, gyms, living and dining areas and outside spaces).
The concept is that residents spend less time within their smaller personal space and more time within the central communal areas, creating a community feel and enabling renters to benefit from the convenience of living in prime locations, whilst paying more affordable rents. Co-living schemes appeal to different age demographics with many schemes focusing on young professionals/graduates and mature students; but others are targeting nomadic business professionals, temporary international residents, or active retirees.
Ten reasons why co-living is on the rise within the residential sector
There are many factors which have played a part in the rise of co-living. The sector is underpinned by the fundamental shifts in living and working habits of the consumers:
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