Co-living, student housing and co-working have rental yields between 7% & 10%, higher than the 3% average yield from traditional rental models, a Confederation of Indian Industry (CII)-ANAROCK report said
The new real estate rental asset classes have attracted funding from private equity players, developers and individuals investors. Start-ups have particularly benefitted from the funds and have been enabled to scale up operations in multiple cities.
Top 6 co-living players have 118,000 beds in India, priced Rs 6,000-30,000 per month, while 13 prominent student-housing brands now have 150,000 lakh beds across the country.
These players are drawing investments from both domestic and global companies.Major investors prefer cities such as Mumbai, Pune and Bengaluru.
Where, Senior housing growth comes from outskirts of top cities and tier-2 and tie-3 cities such as Bhiwadi (National Capital Region), Neral (Mumbai), Telagaon (Pune), Devanahalli (Bengaluru), Mysuru and Coimbatore, according to the report.