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Co-working, co-living are emerging asset classes in Indian real estate market
Jun 28, 2019
BENGALURU, 28 June 2019: Mr Sanjay Dutt, Chairman, FICCI Real Estate Committee and MD and CEO, Tata Realty and Infrastructure Ltd today said that we live in a globally connected world and this has disrupted the real estate sector led by nomadic millennials who are redefining the meaning of 'living' and 'working'.
Speaking at a conference on 'Co-working and Co-living spaces: The Future of Indian Real Estate' organised by FICCI at CoWrks, a co-working solution provider, Mr Dutt said that the co-working and co-living are the emerging asset classes in Indian real estate market.
"Corporate executives are following CapEx model in real estate which is important for companies to grow. Private equities are also very specific when looking to make business and they look for the return on investment. Therefore, this concept of co-working and co-living has brought relief in the overall sustainable working system with cost reduction and shared amenities," he said.
FICCI-JLL whitepaper on 'Co-working: Reshaping Indian Workplaces' and 'Co-living: Reshaping Rental Housing in India' were released at the event.
"In Asia-Pacific region, India has become the torchbearer in the co-living space with several players looking to grab a share of the burgeoning opportunity. The co-living market in the country is expected to grow at a CAGR of 17% in the next five years to touch nearly Rs 1 trillion," Mr Dutt said.
Dr Samantak Das, Chief Economist and Executive Director - Research & REIS, JLL India said that the migrant millennials have made sharing an integral part of consumer behavior and co-working and co-living are redefining the Indian real estate landscape.
"Sharing is well converging with the new generation and it is being reflected across the economy including the real estate. Uber and Airbnb have removed the need for ownership of a cab and a room. This ensures optimal usage of resources and it helps check the widening scarcity gap," Dr Das said.
Mr Sidharth Menda, Founder and Vice Chairman, CoWrks said that he expects the flexible workspace industry to account for at least 40% of all annual commercial real estate absorption by 2021.
FICCI-JLL whitepaper on 'Co-working: Reshaping Indian Workplaces' and 'Co-living: Reshaping Rental Housing in India'
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