To encash on the increasing demand for co-living spaces among millennials and students, Housr will offer large format co-living spaces with over 700 beds per property and plans to invest over Rs 346 crore in the market in the next 12 to 18 months.
Lodha Group MD and CEO Abhishek Lodha and Godrej Properties Executive Chairman Pirojsha Godrej have made an investment in co-living firm Housr, which has been co-founded by Tribeca Developers MD Kalpesh Mehta and Deepak Anand.
The company did not disclose the amount infused by the two promoters and three investors — Abhishek Lodha, Pirojsha Godrej and Unimark group Chairman Harsh Patodia.
“At this stage, we are not disclosing investment numbers since the round involved founders as well as private investors. However, we plan to invest upwards of $50 million in the market in the next 12 -18 months as we are extremely bullish about the growth of super aggregated co-living segment both on demand as well as supply side,” Deepak Anand told Moneycontrol.
The co-living segment has one of the largest demand potentials in the country, with market size of over 50 million plus millennials in the top ten cities in India.
“Over the next 12-18 months, we plan to expand our India footprint to over 50,000 beds and 20 properties by entering markets such as Chandigarh, Pune, Bengaluru, Chennai, and Hyderabad, in addition to Noida, Mumbai and Kota,” he said.
The first property in Gurugram is expected to go live in the next three to four weeks and will have nearly 900-plus beds, the company said.
Housr has taken on long-term lease two residential towers from realty firm Tulip Infratech to launch its first co-living project in Gurugram. This property would be operational in 4-6 weeks in a price range of Rs 10,000-25,000 per month per bed including breakfast.
Asked if any corporate house in Gurugram has evinced interest for pre-leases, he says that although there is an interest, “we will start with pre booking in a few weeks from now.”
The company is planning to launch five properties in the next four months making around 3500 beds operational.
“We plan to open two properties in Gurugram and one each in Noida, Mumbai and Kota and eventually we will expand to Chandigarh, Pune, Bengaluru, Chennai, and Hyderabad,” said Tribeca Developers MD Kalpesh Mehta.
Co-living space has a potential to become a $93 billion market annually as demand from students and professionals are on the rise, as per a report by PropTiger that also terms the co-living space as “real estate goldmine” that remains largely untapped.
Knight Frank India in its report Co-Living – rent a lifestyle said that 72 percent of millennials (18 – 23 years) have given co-living spaces a thumbs-up and over 55 percent respondents in the age group of 18 – 35 years are willing to rent co-living spaces. The survey was undertaken across top cities of India, including Mumbai, Bengaluru, Pune, Hyderabad and NCR and received responses from a cross section of people between the ages of 18 – 40 years of age.
The survey also observed that close to 40 percent of all respondents are most comfortable in paying between Rs 1.2 lakh to Rs 1.8 lakh per annum towards rental housing in key cities of India. The sweet spot for rentals thus remains at a monthly outflow of Rs 10,000 to Rs 15,000, it said.
The study says that a stable co-living facility generates net yield of approximately 12 percent, while rental yields from a traditional 1BHK remain at 1.5 percent to 3 percent.