One of the latest real estate asset classes, already growing in popularity in Hong Kong and across Asia too, is bucking the trend attracting investors back to London. Co-living is primed to take off in the capital city.
Such developments consisting of smaller private rooms and larger communal amenities are being viewed as the inevitable evolution of the booming “sharing economy”, which is projected to be worth US$335 billion by 2025.
Britain’s capital city is in a prime position for co-living to flourish as the shortage of affordable housing solutions against an ever-increasing demand for rental properties, has paved the way for this new asset class to take shape. The co-living sector is stepping in to satisfy the changing demands of millennials when it comes to renting and also respond to the increasing housing issues they face.
The new developments are focusing on four 4 C’s: convenience, community, connectivity and city living. Modern technology, communal stylish kitchens, dining rooms, living areas, coworking spaces and gyms are standard offerings in co-living developments, with some even offering games rooms, spas, restaurants and cinemas. Short-term rental contracts are available allowing the new generation of tenants, who are drawn to a more flexible and collaborative lifestyle, to move across the city, or indeed the world, with ease.
In addition to the modern facilities, these developments also aim to cater to the increasing number of young people who say they feel lonely in big cities, by providing opportunities to make friends and business connections, more than what a standard London rental could ever provide. Best of all, co-living accommodation provides a cheaper alternative for renters, with cost savings of roughly 25 per cent per month.
The co-living sector is following in the footsteps of coworking, where flexible offerings, tailored to an individuals’ specifications, reigns supreme.