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Handbook for Co-Living Developments in India

A guide & application manual for design, development, investment, and operation

17,500

Co-Living sector has evolved at brisk rate during last one decade, reason for its rise is attributable to many aspects: demography, customer needs, technology and rise of middle class across different parts of the world. It is one of the prominent disruptions witnessed by the residential real estate.

Co-Living industry has a huge potential in a country like India which is home to the largest population of Generation Y cohort (25-34 years old). With more and more millennials migrating to urban cities of India for work, availability of quality housing at affordable prices continues to be a challenge.

The “3Cs” of Co-Living industry are Community driven, Convenience and Cost savings. During the pandemic, people have realized the need of a deeper community connect, higher convenience (in the form of flexibility, ease of use), and heightened affordability of living solutions in this phase of crisis. Therefore, the “3Cs” of Co-Living development are not just relevant anymore; they seem to be even more relevant during and post the COVID-19 period.

Co-Living industry is in evolving phase from all perspectives: market, product, and operations. We are all learning about its different aspects everyday with your experience and research. Therefore, we have put together this handbook to help different stakeholders: developers, property owners, investors, operators, architects, and technical consultants to provide insights and 360-degree guide during development planning, investment decision, setting up and improving operations of Co-Living development projects in India.

This book is a must read to understand Co-Living Developments in India. It covers:

Industry analysis: Current global, national trends and prevailing market practices
Demand Analysis: Market size, target segment, latent demand, and annual growth
Competition analysis
Spatial design, utility requirements & property specifications
Building approvals required across 6 cities (Bangalore, Chennai, Delhi NCR, Hyderabad, Mumbai, and Pune) of India; and associated costs & timelines.
Best practices and application guidelines for applied PropTech and ESG.
Guidelines/ Framework for Operations Manual
Community building guidelines
Business & Operating Models
Development costs, Operation costs and Operating profits
Financial analysis and Return computation for PropCo and OpCo.
Financing Routes
Opportunities for Property Owners, Investors and Operators

This handbook has been thoroughly researched and referenced, with relevant information been collected through interviews with architects, operators, developers, investors, owners, and statutory authorities, along with our own proprietary research.

150 Pages; June 2021

SEE: INSIDE THE REPORT

1 Executive Summary
2 Introduction
2.1 Introduction
2.2 Why Develop/Invest in Co-Living Development
3 Co-Living Industry Trends
3.1 Global Market
3.1.1 Geographic Footprint
3.1.2 Global Operators
3.1.3 Fund raised by Global Operators
3.1.4 Outlook
3.2 Rental Housing in India
3.3 SWOT Analysis of prevalent Business Models for Rental Housing
3.4 Indian Market: Competition Analysis
3.4.1 Co-Living Operators in India
3.4.2 Inventory
3.4.3 Classification
3.4.4 Amenities
3.4.5 Key Commercial Terms
3.5 Investments in the Co-Living Sector
4 Co-Living Developments
4.1 Co-Living Developments
4.1.1 Concept
4.1.2 Salient Features
4.1.3 Classification of Co-Living Communities
4.2 Location, Development Type and Size
4.2.1 Preferred Cities and micro-markets in India
4.2.2 Retrofitted Co-Living and Purpose-Built Co-Living
4.2.3 Development Size
4.3 Rental Values for Commercial, Residential & Co-Living in 6 cities of India
5 Market Size and Opportunity
5.1 Methodology
5.2 Target Audience
5.3 Addressable Market Size
5.3.1 Latent Demand
5.3.2 Additional Annual Demand
5.4 Type of Supply: Existing and Future
5.5 Opportunities for Stakeholders
6 Design and Specifications
6.1 Design Guidelines
6.1.1 Retrofitted Development
6.1.2 Purpose-built Development
6.2 Specifications
7 Regulatory Requisites and Building Approval for 6 cities in India
7.1 Statutory Approvals
7.1.1 Summary
7.1.2 Pre-Construction Approvals
7.1.3 Approvals during construction and upon on Completion
7.2 Timelines
7.3 Cost
7.4 Others
7.4.1 Basis of Property Tax Calculation
7.4.2 Indicative Property Tax
7.4.3 Building-use considered for Electrical Connection
8 Operations
8.1 Operating Companies: Key Functions and Costs
8.1.1 Management Structure
8.1.2 Department and Respective Functions
8.1.3 Direct Operating Costs
8.1.4 Indirect Operating Costs
8.2 Applied PropTech
8.2.1 Overview
8.2.2 Con Tech
8.2.3 Smart Tech
8.3 Applied ESG
8.3.1 Background
8.3.2 Need to adopt ESG Goals
8.3.3 How is ESG being applied?
8.3.4 ESG measures and benchmarks
8.3.5 Applying ESG principles, protocols and practices to a Co-Living investment:
8.4 Community
8.4.1 Overview
8.4.2 The role of the Community Facilitator
8.4.3 Tools to enhance Community building and facilitation
9 Impact of COVID-19 on Co-Living Developments
9.1 'New Normal' Period: Short Term Impact
9.2 Long Term Impact
10 Business Models
10.1 Development Models
10.1.1 Built-Operate-Own Model
10.1.2 Lease Models
10.1.3 Management Contract
10.2 Scope of Work for Owner and Operator for different development models
11 Financial Analysis
11.1 Development Cost & Timelines
11.1.1 Finance Cost
11.1.2 Project Timelines: Purpose-built Co-Living Developments
11.2 Project Estimated Return Computation (PropCo)
11.2.1 Estimated Returns for Lease Model (Fixed Rental)
11.2.2 Estimated Returns for Revenue Sharing
11.2.3 Estimated Returns for Profit Sharing
11.2.4 Estimated Returns for Management Contract Model
11.2.5 Estimated Returns for Built-Operate-Own
11.2.6 Summary: Return on Investment
11.3 Financial Analysis of a Co-Living Operating Company (OpCo)
11.4 Financing Options
11.5 Exit Options
12 Conclusion and Way Forward
Annexure
Annexure 1: Specifications for a Purpose-built Co-Living Development
Annexure 2:Statutory Authority issuing Development Approvals in 6 cities across India