India's co-living sector is poised for significant expansion, with organised inventory projected to triple from approximately 300,000 beds in 2025 to nearly 1 million by 2030. This growth is driven by urban migration, particularly among students and young professionals seeking flexible, affordable, and community-oriented housing solutions. 

Key Highlights

1. Market Size Projection: The co-living market, valued at around ₹40 billion (approximately USD 480 million) in 2025, is expected to exceed ₹200 billion (approximately USD 2.4 billion) by 2030. 

2. Demand-Supply Gap: With an estimated demand of 6.6 million beds in 2025, the current supply of 0.3 million beds indicates a significant shortfall, presenting opportunities for expansion. 

3. Rental Advantage: Co-living spaces offer a rental cost advantage of 20–35% compared to traditional 1 BHK units, making them an attractive option for the target demographic. 

4. Investment Appeal: Since 2015, leading co-living operators have collectively raised approximately USD 1 billion, reflecting strong investor confidence in the sector's growth potential. 

5. Business Models: Operators are employing various models, including lease, management/revenue-sharing, and franchise, to scale operations efficiently across Tier I and select Tier II cities. 

6. Student Housing Segment: The demand for student accommodation is estimated at 12 million beds, while current supply caters to only about 4 million, highlighting a substantial opportunity for purpose-built student housing solutions. 

The co-living sector in India is entering a transformative phase, characterized by rapid growth, evolving consumer preferences, and increasing institutional investment. As operators expand their footprint and diversify offerings, co-living is set to become a mainstream component of the urban housing landscape by the end of the decade.

Image source: cofynd