Gurgaon has become one of the most attractive cities in India to live in and work from. Thanks to a huge influx of multinational companies, technology start-ups and housing options - especially flexible and affordable rental housing.

 

As with co-living spaces in India, what once seemed to be just a trend has turned into yet another housing opportunity for living and working in Gurgaon. For the investors and developers, co-living emerges as a profitable option. Let’s take a look at why co-living spaces in Gurgaon are appealing, how they work, and the value of investment in co-living spaces. 

What are Co-living Spaces?

Co-living can be defined as an advanced approach to housing in which an individual rents a private bedroom in a community living arrangement with shared spaces. While similar to traditional paying guest (PG) arrangements or hostels, co-living spaces are fully furnished and offer a variety of other included amenities. 

 

Features of co-living spaces include:

  • Fully furnished private rooms or studio-style accommodations
  • Shared kitchens, lounge areas, and recreational areas 
  • Cleaning, laundry, and maintenance services 
  • Community activities
  • Flexible housing terms, including short-term housing

Why Gurgaon Is the Hotspot for Co-Living?

1.Financial and Career Development

The real estate in Gurgaon grew fast as job companies and better infrastructure came in. It contains the offices of Fortune 500 companies, large IT parks, and a large number of start-ups. This creates a strong need for affordable, new housing close to workspaces. Co-living spaces offer comfortable and walkable housing from employment hubs like Cyber City and Udyog Vihar.

2.Rental Demand

Renting in Gurgaon is difficult regardless of economic conditions. Most leases in Gurgaon involve a year in duration, high rents, and most importantly, furnishing an apartment. Investment in co-living spaces solves all of those problems - already furnished, affordable monthly basis, with almost no committed annual float.

3. Lifestyle Preferences of Millennials and Gen Z

The experiences offered by co-living spaces are exactly what the new workforce desires - a community to belong to, with no maintenance issues, plenty of community activities, and well-designed environments, with amenities like high-speed Wi-Fi, gyms, gaming zones, and cafes. 

Investment Potential of Co-Living Spaces in Gurgaon

High Returns on Investment

Investment in co-living homes provides a greater return than a traditional rental home. If the three-bedroom apartment were to be rented to a single family, it may earn ₹40,000 a month. However, if it were to be utilized as a co-living apartment and 2-3 rooms were rented out separately, it would gross ₹60,000-₹70,000 a month. 

Low Vacancy Rates

Vacancy is a significant issue for landlords; however, co-living venture owners have minimized occupancy risk. The key areas of Cyber City, Golf Course Road, Sohna Road and Udyog Vihar are busy all the time, meaning that a unit is likely to be empty. The affordability and flexible housing option of co-living will help the time frame for finding a new tenant. 

Growing Institutional Interest

All major players in the market for co-living, including Stanza Living, CoHo, Zolo, and OYO Life, are investing heavily in Gurgaon and scaling their operations very quickly in the co-living space. The team of leadership that these companies employ clearly believes that co-living will grow and scale, as demonstrated by their growth strategy.

Long-term Scalability

The co-living sector is still in the growth stages in a market like Gurgaon, and that has only continued to increase year-over-year. As more and more professionals flock to a growing city, and with the added factor of lifestyle choices, the housing choice of today and tomorrow will tilt towards co-living, and make it an even larger investment opportunity.

Popular Locations for Investment in Co-Living Spaces in Gurgaon

Gurgaon is a city of opportunities, and housing trends demonstrate how fast-paced living becomes airborne. With professionals and expats moving in and out at very high frequencies, several places in Gurgaon have become sought after for co-living. 

Sector 29 & HUDA City Centre

These are regions of social entertainment, dining, culture, nightlife and more. Students and young professionals prefer to live here because most things are within walking distance, from restaurants to the metro station, and co-living operators are surrounded by exciting social venues, which gives them consistent demand.

Sohna Road & Golf Course Extension

These areas are characterized by new residential buildings with premium lifestyle amenities and new surroundings. They attract students and professionals looking for budget vs quality between apartments or homes, and nearby cafes, gyms, and coworking areas add additional appeal to co-living operators. 

Udyog Vihar

Udyog Vihar has a significant concentration of start-ups and other corporate companies. This is an area of great interest for recent graduates and those entering the workforce. Co-living accommodations in Udyog Vihar are best for those who are looking for affordable housing and proximity to work. 

Challenges with Investment in Co-Living

High Initial Setup Cost

There is a sizable upfront cost of reconfiguring a property for co-living as investors have to purchase furniture, interiors, security systems, and amenities to meet market expectations. However, this is usually recouped over time with increased monthly yields in rent.

Management & Operations

Investors and operators are more active in managing their co-living business. Unlike traditional rentals, there is more than collecting the rent. Those in the business of co-living deal with maintenance, cleaning, tenant relations, community activities, etc. 

Competition 

As co-living becomes trendy, more co-living operators will enter the existing larger pool of operators in Gurgaon. It will be challenging to keep tenants in a competitive housing market if they cannot find uniqueness in the homes. So, real estate consultants can help investors identify unique, high-quality properties at fair prices. 

The Future of Co-Living Spaces in Gurgaon 

Technology Integration 

Technology is fundamentally changing co-living in Gurgaon. With the use of apps for rent payment and AI management systems, co-living operations are becoming more seamless. The benefits of this new technology will attract tenants and underscore the notion of co-living as a more advanced housing option for the future. 

Hybrid Models 

Flexible hybrid models that combine co-working and co-living are attracting more individuals. In Gurgaon, freelancers and remote workers want to live in a hybrid lifestyle. Now, productivity and lifestyle are combined to create a highly sought-after housing opportunity for professionals. 

Institutional Funding 

Institutional funding to co-living operators in Gurgaon seems to be more prevalent. With funding available for expansions, renovations, and upgrades, it seemed that institutional investors demonstrated their conviction in the co-living sector with patience to create sustainable growth, making co-living a safe and secure investment opportunity. 

Conclusion

Co-living will continue to expand in Gurgaon, as it is not just a housing trend- it's a lifestyle for young professionals and students alike. For tenants, there is affordable, convenient, and community-based living. For investors, you are receiving high rental returns, occupancy is made easy, and provided with future growth potential.

 

However, success in this sector requires careful property planning in Gurgaon and good locations. With Gurgaon continuing to grow its workforce, and with lifestyle preferences changing, investment in co-living is set to evolve into a smart decision.

FAQS

 

Q.1 How are co-living accommodations different than normal rentals in Gurugram?

Co-living accommodations differ from other normal rentals in Gurugram in that co-living spaces are 100% furnished and professionally managed properties that include regular amenities in a single monthly rent. Co-living accommodations center around community and flexibility, which is contrary to a normal lease that usually binds tenants for 12 months at a time. 

 

Q.2 How do investors increase yields and returns from co-living spaces in Gurugram?

Investors increase yields and returns to invest in prime locations, such as Cyber City and Golf Course Extension, and hire an experienced operator of co-living spaces to manage the accommodations. Flexible lease terms also help obtain higher yields from properties. 

 

Q.3 What does the future of co-living accommodations in Gurgaon look like?

 

The future of co-living in Gurgaon is bright, as many factors are leading the point of co-living from niche to mainstream. Emerging technologies are integrating into the betterment of co-living, and institutional investors are increasing their investment in co-living spaces.