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When marketing executive, Anum Ajani moved from Mumbai to Bengaluru last year to take up a new job, she opted for a co-living space in the heart of the city instead of the usual 1BHK semi-furnished/fully furnished accommodation in premier residential localities.
Proximity to work, safety, minimal rent deposit, and community life were her top reasons for choosing The Hub Bengaluru.
Convenience
As per data from NoBroker.com, which has a user base of 4.5 million in the top five cities, 52 per cent of home seekers check home to workplace distance as the first parameter for a home, followed by safety of the neighbourhood and water supply, both equally important factors for them.
“Due to rapid urbanisation and job opportunities, there is a lot of movement from small towns and cities to metros. This population is young and has more disposable income due to which, demand for rental accommodation is slated to increase further, despite rent inflation of over 10 per cent in metros” said Saurabh Garg, co-founder and Chief Business Officer, NoBroker.com.
Shared accomodation
QuikrHomes and Commonfloor see demand not only for rented properties, but also for shared accommodation.
“Today’s millennials have given co-living spaces a big thumbs up and as a result, QuikrHomes PG, the Co-Living segment via the acquisition of Grabhouse, has scaled the platform from 800 to 80,000 plus tenants in the span of two years. Apart from individuals, we also see an increasing demand from educational institutions and corporates to accommodate their people across Delhi NCR, Bengaluru, Pune and Hyderabad,” said Atul Tewari, COO, Quikr.
The overall demand for rentals across India is high versus availability of supply, said Nimesh Bhandari, VP- Commonfloor.
“Among metros, Chennai saw the highest demand at 67 per cent for rental homes; non-metros followed with 66 per cent demand. Chennai, Hyderabad and Bengaluru were more inclined to rent 1BHK and 2BHK homes as compared to other metros/non-metros” he said.
Co-living start-up, ZoloStays has grown 800 per cent from 2,000 live beds to 16,000 live beds with 157 properties currently under the Zolo management in the last two years and is targeting 50,000 beds by the end of this year.
“Buying homes is no longer the core agenda of millennials today” said Nikhil Sikri, co-founder and CEO, ZoloStays, who estimates the Indian residential rental market at $40 billion - $50 billion.
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