India’s residential real estate market is facing its most prolonged slump in recent memory, but one segment, co-living, is having a moment, drawing considerable attention from investors. “These spaces have smaller private areas and larger common spaces, which helps them socialise and works on the economy of scale. Nestaway, which entered the segment earlier this year and hopes to have 20,000 beds, counts Goldman Sachs among its major investors. If the property owner invests in redesigning and furnishing the co-living space, the revenue sharing arrangement is 50:50. Operators can increase the yields of properties to the level of commercial ones, higher than 2-3% that a residential property commands.”

Source: Economic Times December 08, 2019 05:03 UTC