Mumbai ranks 5th among 20 cities in the Asia Pacific that can emerge as a co-living destination, property consultant Knight Frank said on Monday.
New Delhi at 11th rank and Bengaluru at 19th are the two other Indian cities in the list, according to Knight Frank's report 'Insights on Co-living – An Asia-Pacific Perspective'.
"Mumbai is ranked 5th in its co-living index that tracks markets' possibility of success as a co-living destination," the consultant said in a statement.
Beijing, Tokyo, Shanghai and Hong Kong are the top four cities in the list.
The report covers 20 major Asia-Pacific cities classified into six key attributes that are likely to contribute to fostering the growth of co-living. The six attributes are tech & financial hub, venture capital deals & growth, housing affordability, university population, general population & human development index, and quality of life.
"With a weighted average score of 65.94 across six basic parameters, Mumbai (5th) has emerged as the top potential market for co-living in India due to higher prices, rapid and continuous gentrification as well as its unchallenged position as India’s top economic centre, offering vast opportunities for growth of the co-living sector," the consultant said.
Job opportunities in the financial sector and low housing affordability are major driving factors for the growth opportunity in the co-living sector in Mumbai with 55 per cent weightage as per the co-living Index, the statement said.
Mumbai’s large population is another major factor that offers scope for market penetration by domestic co-living operators.
"288 per cent spike in the venture capital deals in Mumbai is a significant factor accounting for quality of job creation resulting in growth opportunities for the co-living sector."
New Delhi ranked 11th with a total score of 53 in the co-living index. Bengaluru (ranked 19th) is third Indian city after Mumbai and New Delhi which are placed among other major Asia-Pacific cities in the co-living index.
"Co-living is experiencing rapid traction across the markets and has been a disrupter in many ways in markets across the world. Amid changing lifestyles and stratospheric housing prices across major economic centres, co-living provides an alternate flexible accommodation option for the temporary and transient workforce," the consultant said.
This modern form of urban housing is not a new concept, with other forms of shared spaces already in existence such as hotels, serviced apartments, hostels, etc.
Building upon a similar model, co-living innovates by providing a curated social environment that builds upon the community via three distinguishing characteristics; shared spaces, events, and community.
As compared to 2010-2012, the venture capital deal flow in Mumbai spiked by 288 per cent in the period between 2015-17.
The rise in deal flow is a key indicator of the quality of job opportunities which are being created in the financial hub and a ready demographic pool which the co-living operators can cater to, given the omnipresent shortage of quality rental housing dwellings near employment hubs.
New Delhi features on the co-living index at 11th position. Despite relatively higher housing affordability than Mumbai, the general population and human development index in New Delhi is much higher than that of Mumbai, making it an apt choice for co-living operators to expand in as this is a key demand driver.
