Realty gearing up for co-living sector boom

When Oxfordcaps, a Singapore-based realty startup introduced the concept of student living space, nobody thought the concept would work in India. Now, Roshnara Gardens is an exclusive 55-bed property in the suave North Campus of Delhi University which offers interactive courtyards, open terraces, jam rooms and, above all, a secure place for hordes of young students who cannot get rooms in the limited hostel facility.

Within a year of its launch, the trend has begun picking up traction as many more firms come up with their own projects. “The student housing sector in India is currently a $15 billion industry. The sector sees robust demand from nearly 11 million migrating students. However, the space is largely unorganised, with lack of quality infrastructure and personalised services being significant gap areas,” Anindya Dutta, co-founder, Stanza Living, said.

Stanza Living, started with a capacity of 100 beds in 2017, has grown to over 2,000 beds and 16 residences across Delhi, Noida and Greater Noida. Realizing the potential, marquee global investors like Sequoia Capital, Matrix and Accel Partners have invested $12 million in the firm. The company seeks to grow ten-fold by next year.

“We have set ourselves an aggressive target to grow to over 10,000 beds within the next one year. In 2019, Stanza Living will be expanding to educational hubs like Bengaluru, Pune, Hyderabad, Chennai, Dehradun, among others,” Dutta said. The company is also exploring opportunities at lower price brackets, which will cater to affordable segments.

Companies are also looking at other opportunities like rental homes for single professionals. In October this year, hospitality firm OYO launched ‘OYO Living’ — long-term, fully managed housing rentals — starting at `7,999 per bed, per month. It offers fully managed independent residential units, inclusive of contracting, furnishing, cleaning, maintenance, and in-stay services, targeting students and single working professionals. With 35 properties with 2,000 beds in Noida, Gurugram, Bengaluru and Pune, Oyo now aims to expand to the top 10 metros by the end of 2019, with a target of over 50,000 beds.