Co-living as the New Hospitality: How Shared Living is Becoming a Service-Oriented Industry.
By : DC Correspondent
Update: 2024-12-01 08:40 GMT
As the notions of public and private spaces gradually erode, “space-as-a-service” business models, particularly co-living, have grown exponentially under the influence of technological advancements and the shared economy. This growth has also been marked by significant evolution of the concept itself. What was once considered an affordable alternative to traditional housing for students and young professionals has now shape-shifted into a service-oriented sector, giving contemporary hospitality giants a run for their money. Staying ahead of the curve with top-of-the-line service offerings, these co-living startups consciously redefine shared living.
From Shared Spaces to Shared Experiences
According to a joint study by Knight Frank India and CII, the coliving sector in India is expected to grow at a compound annual growth rate (CAGR) of more than 17% by 2025, driven by the desire for flexibility and community-driven living among millennials and Gen Z.
However, the contemporary co-living model competes on service rather than price and convenience. Less drawn to homeownership & more driven by experiences, millennials and Gen Z naturally gravitate to the hospitality-first strategy of these spaces. Coliving is becoming a hub of comfort, community, and convenience thanks to its services, such as professional housekeeping, in-house cafeterias, complimentary laundry, unique social experiences, and more.
Blurring Boundaries Between Housing & Hospitality
Flexibility, financial strategy, and holistic living are now prerequisites for renting rather than just preferences. This trend is more pronounced as per a survey by Housr, a leading luxury coliving player, which revealed that 50% of millennials are willing to spend more than 25% of their income on fully-furnished and professionally managed accommodations.
In response, co-living providers create environments that blend comfort, community, and luxury to provide an unmatched work-life balance. Unconventional collaborations with wellness and lifestyle companies and massive tech integration hint at a complete rethinking of the business value proposition of these co-living startups, rather than just an operational update.
Living as a Service vs Space as a Service
In an industry where demand often outpaces supply, service quality—rather than location or price—is the key to success. Responding to these market dynamics, tenant retention and customer satisfaction are achieved through tech-enabled comforts, on-demand maintenance, and concierge-style support. Additionally, digital innovation is crucial, as smart apps enable everything from raising maintenance tickets to paying rent seamlessly.
In a market that increasingly prioritises value-driven living, these hospitality-inspired elements are more than just niceties—they are necessities.
Conclusion: The Roadmap Ahead
Coliving has cemented its position at a strategic point between traditional housing and hospitality. Hyper-localised experiences, sustainability, and personalisation will shape the future of this hybrid paradigm. Operators who invest in leveraging their residents’ preferences and providing tailored solutions will emerge as market leaders.
Finally, co-living as an industry will continue to grow and evolve; a service-led approach is just the first step toward a complete reimagination of how people live, work, and interact in the contemporary world.
-- Deepak Anand, Co-founder & CEO, Housr