Why young Indian professionals are making the shift to co-living

With steep rents cutting deep into their pay packets, younger professionals are left with no choice but to hunt for cheaper accommodation and co-living is emerging as a favourite.

Co-living platforms allow tenants to book rooms instantly and without any hassles. There is no brokerage fee and the deposit is usually just one month worth of rent. Rents are in the range of ₹15,000-20,000 per person (see graphic).

Start-ups like Zolo, Stanza, HelloWorld, Nestaway, etc., offer shared accommodation across multiple properties— 2BHK, 3BHK and even 1BHK studio apartments.

“Millennials and younger professionals require well-managed facilities. They don’t want cheap hostels or the costliest 1BHKs in metro cities. So, they prefer co-living," says Swapnil Anil, executive director and head-advisory services, Colliers India.

The co-living facilities have several advantages. For instance, they let tenants download rent receipts from their apps that helps them claim house rent allowance easily.

Mint spoke with some young professionals on what pushed them to opt for co-living spaces.

Proximity to office

Rohan Takalkar, 30, from Pune, started looking for rental accommodation in Bengaluru after joining a fintech start-up there. Takalkar says he was shocked when the landlords demanded deposits in the range of ₹1.5-2 lakh.

He didn’t mind sharing a 2BHK apartment but was averse to the idea of bearing the full rent in case his roommate was to shift elsewhere. He would have to pay the full rent till a new tenant was found. There were other costs as well: brokerage, new furniture, wifi connection, etc.

That’s when Takalkar came across co-living facilities. He was able to find a 2BHK in a co-living property near his office. Apart from it being at a walkable distance from his workplace, what he liked about the facility was the low deposit requirement and quick booking.