What is Co-Living and Why Should I Invest In It?

Co-living is a relatively new concept to residential living, in which people share resources, spaces, and experiences. Typically involving shared communal spaces and facilities, and having a keen focus on the community aspect of the development while still offering a private space for each resident to retreat to, co-living is becoming more and more popular in both the investor and the rental market.

For those unsure about what co-living means and why it could be the perfect choice for your next investment opportunity, we've explored 3 key benefits to share with you.

1) Bridging the Gap in Demand

Co-living spaces offer a unique option for many renters, as traditional housing models fail to meet the ever-growing demand. This option is beneficial in a few ways;

• Affordability

Communal amenities tend to make living costs more manageable, whilst improving operator profitability

• Community

Renters have the opportunity to create meaningful connections, helping to combat the loneliness epidemic and encouraging long-term, happy residents.

This means that co-living is more than just a typical rental model; it's a lifestyle that more and more renters are looking for.

2) Consistently-growing Demand

Rental demand has continued to grow much faster than the supply across the country, and co-living is now one of the most popular options in the market. Demand has massively changed in the past few years, due to a number of factors;

• Changing Demographics

Younger renters are flooding the market, and typically prioritise luxury and on-site amenities when renting

• Remote Working

With more and more professionals working under a hybrid model, the demand for co-working spaces is constant, with renters wanting a separate place from their home to work

• Instant Communities

Co-living comes with its own kind of community, ready to move into and become a part of, which a lot of renters are looking for - especially those in a new city, keen to find their feet and make roots for the long term.

3) Profitable & Resilient

Co-living has been outperforming other, more traditional rental sectors for some time now, boasting high occupancy rates even throughout COVID. Co-livings ability to adapt to market changes make it a much safer and more reliable investment option for any property portfolio, with long-term profitability offering a higher rental yield and demand showing no signs of slowing down.

If you've been exploring the co-living sector and want to find out more, reach out today to speak to our expert team.