How co-living and co-working are expected to reshape the Real Estate sector in India, amidst COVID-19!
The pandemic has had a global impact both on our lifestyle, as well as the economies of the world, which need to find its equilibrium, in order to survive. In the wake of COVID-19, most of the industries asked employees to work remotely, and the traditional working pattern has been affected tremendously. Yet, post the long-standing phase of lockdown, businesses will have to boost up their effort and come up with newer strategies, in sync with the new normal. The best possible way for this, is when two firms in the same niche congregate, to work in a shared economy.
Commercial and residential shared spaces have been a trend in the west for many years and have been a recently emerging trend in our country as well. Co-working has now become the norm for millennials and freelancers, people who have a choice to work remotely, or for those who have just entered the start-up space and are looking for modern cost-cutting possibilities.
Concurrently, they are not only redefining the working culture but also re-shaping cohabit opportunities in society. The contemporary concept of ‘co-living’ has garnered a lot of attention. It’s one of the easiest ways for young professionals to start living in reputable accommodations in high-rent lifestyle cities and aspire to live together, with culturally and professionally like-minded people, in a home away from home.
Co-working
The co-working segment has expanded rapidly in the past years and has developed itself as a fast-rising market. It has not only provided professionals with technology and expertise, but its scope has also expanded to mainstream corporates. Witnessing the arrival of major real estate companies in recent years in this space, there are currently more than 200 active players across the country and the trend is expected to grow.
In the coming years, smaller companies will see more mergers and acquisitions with the larger players. The large format co-working spaces, of 4000 to 5000 seat capacities may not necessarily be the need of the hour, as a lot of companies might permanently shift to remote working. However, people will still need to adhere to norms of social distancing and post the COVID era, the market will witness considerable growth.
Co-living
Co-living has changed the perception of ‘owning’ to ‘sharing’. This might seem beneficial for the ever-moving millennials. It gives you an affordable, convenient and safe choice in a new city. Furthermore, it eliminates the equation of owners vs agents, who hold ultimate power in renting a house. These could be some of the biggest pull factors for youngsters to opt for co-living instead of owning. However, in an unprecedented time like this, Co-living will be a challenge as people will prefer to go back to basics and focus on single occupancies instead of sharing. The industry has to bear with this for the next couple of months but once businesses start settling in, there will newer opportunities and co-living marked will surely bounce back.
Way Forward
Shared economies can definitely be a game-changer if the real estate sector can work in a more organized way. They must focus on creating bodies, and regulations that can define the terms more transparently, so that ease of business can take place smoothly. This will mutually benefit the industries and drive growth post COVID.
Though things will take some time to revive and revert back to the ‘new normal’ in both the cases post the COVID situation, the industry will bounce back. A major chunk of the shared economy has been affected by the ongoing pandemic and is posing as a hindrance in the market demand. Nevertheless, there are surely innumerable opportunities in the years to come, for both the co-living and co-working industries, where they will be expected to be in sync as partners. The industry is expected to revive post the phase of the ongoing crisis, and a few of the primary reasons that can be taken into consideration behind this revival, are:
• With the uncertainty of rentals amongst the unorganized sector, the industry can expect great demand for professional Co-living.
• Hygienic, cleanliness and safety will be the new mantras for house hunting and once the shared spaces provide these assurances, tenants will not think further.
• With uncertainty in the real estate sector, the demand curve for rental housing will go up in urban markets in the coming years.
To conclude, we can definitely foresee a positive outlook and expect a slow and steady growth for the real estate industry, post the phase of lockdown and COVID-19 crisis. However, while coping with the losses borne during the present situation, the industry will require some time to get back on track, and Co-living and Co-working needs to work in tandem to boost up one another.
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