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CASE STUDIES

OUTREACH AND PERFORMANCE OF CO-LIVING AS

A NEW RENTAL HOUSING FORMAT

-A Case of Noida & Gurugram

Rental Housing, typically characterized INTRODUCTION
MR. TITAS BHOWMICK by high risk and low yield, has largely
DR. SEJAL PATEL remained on the periphery of Housing Increasing population growth
policy and market in India and many and migration to cities coupled
other developing countries. The policy with limited serviced land
focus is on homeownership, irrespective availability are key challenges
of constraints in terms of small land to the realization of ‘Housing
area and a huge population to cater to. for all’ policy rhetoric. As per
While social rental housing attracts the United Nations Department
Co-living has entered some attention in Housing policy as of Economics and Social Affairs
the market as a new it caters to the lower-income segment, (2018), 34% of the Indian
concept to address the new formats of rental housing catering population lives in urban
issue of rental housing to middle and higher-income segments agglomeration due to diverse
among the millennials are emerging in the market and should economic opportunities offered
mainly constituting be bolstered by strategic policy support. by the city. The economic
students and working Youth who are migrating to metro opportunities trigger migration
professionals. This cities while seeking better economic which is one of the three reasons
paper explores the and living opportunities, frequently (Natural Growth, Migration,
unexplored theme face rental housing shortage. To an Administrative Boundary
extent, this shortage is addressed
of the viability of co- by new formats of rental housing Expansion) of population
living spaces from such as co-living rental spaces. This growth.
the perspective of the paper attempts to understand the Further, migration data show
supply mechanisms and characteristics, business model, and that as per the United Nations
consumers. effectiveness of the supply mechanisms definition of Youth i.e. 15-34
in this segment in two select cities i.e. years age group constitutes 37%
Noida and Gurugram which attract of the total urban migration in
a significant youth population with India (Census of India, 2011).
the highest concentration of white- ‘Job opportunity/employment’
collar jobs in Northern India. This accounts for 17% and ‘moving
Study demonstrates that despite small with the household’ which is
Key Words: Rental Housing, Co-living, market presence these formats are quite
Bachelor’s housing crisis, Rental yield, effective in outreach, risk management, mostly due to employment has
Gurugram, Noida the highest share of 25% among
and yield, especially in the context of the the reasons for urban migration.
Mr. Titas Bhowmick (titasbhowmick@ cities under study. The working model The large-scale migration to
gmail.com) is Post Graduate, CEPT of these formats can also be studied in
University. Dr. Sejal Patel (sejal. patel@ the context of several other metro cities cities further exacerbates the
cept.ac.in) is Professor, CEPT University, witnessing high rental demand. housing crisis. Currently in
Ahmedabad. 77 77

October 2020 Volume 21 No. 2-SHELTER 77