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CASE STUDIES
private equity investors such as • How does the operating RESULTS &
Tiger Global, Google Capital, model in terms of financial DISCUSSION
SoftBank, NewsCorp as well as feasibility for co-living Potential Demand Side
domestic investors such as Ratan rental housing compare with Analysis
Tata’s RNT Associates and SAIF conventional rental housing
Partners, who have invested from the perspective of Among the 103 respondents,
several million dollars (Mishra supply mechanism? 55% are male and 45% are
& Mishra, 2018). female; 39% belong to the 22-24
RESEARCH METHODS age category and 42% belong
From the websites of these to the 25-27 age group. Income
companies i.e Nestaway, The research draws upon composition is quite varied
Coho, Grabhouse, Homigo, mixed methods i.e. qualitative across the respondents. The
SquarePlums, etc, it can be and quantitative methods. lowest monthly income is INR
understood that in this new Structured questionnaire 25,000 while the highest is INR
format of rental housing, surveys (sample size: 120) 150,000. While the lowest and
apartments or bungalows are were conducted to gauge the the highest income groups have
taken on rent and are serviced perception and aspirations of the lowest share, the monthly
either by the rental agency or tenants currently residing in the income range of INR 51,000 to
by the tenant. While room as conventional rental format in 60,000 (19%) and INR 61,000 to
an accommodation type has Noida, Gurugram, South Delhi, 70,000 (22%) have the highest
become almost obsolete with and Dwarka and working in share amongst respondents.
the growing culture of a formal Noida and Gurugram. Strategic
relation between owner and snowball sampling method was In terms of occupancy format,
tenant, single-unit apartments used for the survey. The selection both single (41%) and double
and buildings are the most criteria of the respondents were (57%) occupancy are equally
favored scale of operation in unmarried tenants in the age preferred among the respondents
these new formats while floors bracket of 19-35 years. Due to a as per their affordability,
are targeted as future expansion 14% sampling error, responses whereas triple sharing is not
format. Another very important from 103 people (86%) were considered as a very good option
feature of this new age rental considered for further analysis. because of the lack of privacy;
format is that these players are To understand the supply-side it is only considered when the
all operating in virtual space and perspective and business model, rent is high or paying capacity
connected to their users via the key informant interviews of is low. People prefer to stay in
internet, technology is playing a senior management personnel of a group (93%) rather than in
major role in these start-ups and three co-living companies were individual accommodation (7%)
their success. undertaken. Additionally, rental owing to various reasons such as
housing data were mined from affordability, sense of security,
With this context and articulation property consultant websites community living, etc.
of the concept of co-living spaces, such as Magic Bricks, 99 Acres,
we pose the following questions: Prop tiger, etc. After data In response to rating the
• What are the characteristics collection, descriptive statistical current stay on a scale of 1
(low satisfaction) to 5 (high
and merits & demerits of and critical analysis along with satisfaction), most respondents
co-living spaces from both financial feasibility were done (31%) rated 3 i.e. moderate while
supply and demand point of from both supply and demand 25% of respondents expressed
view? point of view.
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