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CASE STUDIES
all amenities included. This price
includes the electricity bill for
the common area and breakfast.
The current volume of Coho is
990 beds in Gurugram, 10 beds
of 9-10 years. They do all the feet (sq. ft.). Property rate, of in Noida, 500 beds in Delhi.
interior and the furnishing which around 11-13% goes to
suitable to their brand design the landlord which is 5% higher In Gurugram according to
and the property is rented out than the rental yield of that area Census data, 83,781 rental
while providing all the services (8% at INR 33/sq. ft rental value). dwelling units are present in
including food. The rental yield of the Greater Municipal Corporation plus
Your Space properties are Kailash property is 13%. This Outgrowth area. As per the
brokers
during
interacted
located in two areas in the Delhi format is profitable for both the primary survey, in Gurugram
NCR region i.e. Greater Kailash property owner and the rental around 55% of the properties
and Noida with a total of three agency where tenants get safety, are rented to bachelors i.e.
buildings. They have 300 beds security, and services along approximately 46,079 properties
across these three buildings with space. It is the student are rented to bachelors. Further,
wherein the Noida property population, provision of all as per Census data, most
comprises of 50 beds. About services, and security which dwelling units in Gurugram are
80% of their tenants are students is making this business model in the 1 RK (one Room Kitchen)
and they have student-oriented successful in low land price category. Considering two
restriction policies like curfew markets like knowledge park 3, people living in a 1 RK (46,079*2)
timing (which is relaxed for Greater Noida. But as its success 92,158 is the maximum capacity
working professional) and strict is not well tested in various of tenants staying in the region.
guest policy. Rent agreement is locations and among different In the past one-year, CoHo has
done at the first instance while occupant categories, much successfully captured 1.07%
at the time of renewal, rent cannot be inferred. of the market. However, this
increases on a fixed percentage Service Provider Model: CoHo share is as large as 5-6% in select
stated in the earlier agreement. CoHo promotes co-living and commercial districts. But it can
Approximately 40% of the rent operates on an asset-light be safely said that almost the
of each bed is shared with the business model with a strong whole market is unexplored at
owner, 10% is spent on the capital focus on the social experience of this moment.
purchase done for furnishing its residents. Typically, buildings
the building, 15% is allotted for are taken on lease from the asset CoHo invests in large properties,
services including food, and owners on the revenue sharing that are generally 7-10 years
5-8% is used for miscellaneous model. It is ensured that all day- old, are in good condition, and
purposes; which accounts for to-day necessary services like can make room for 30-50 beds.
around 30% profit from each Housekeeping, Wi-Fi, Cable, These are properties that are
bed. Rent for the Noida property Repairs, etc. are taken care of difficult to lease out and manage
is INR18000 for one bed per for the residents via its mobile by the property owners as it is
month for twin sharing room. concierge application. The challenging to rent out large
It results in an approximately monthly fee for a CoHo space properties. It is easier for the
24% yield from that property on a sharing basis is typically owner to tie up with a rental
(at average INR 5000/square between INR 9,000-13,000 with agency and bypass the hassle of
82 HUDCO-HSMI Publication
