Co-living has become a new big trend in Asia and it’s predicted to transform the real estate markets in many countries.
Everything from established developers to individual investors tries to find ways to profit from this growing industry.
Yet, before you decide to invest in co-living spaces, you must understand how the business model works practically and which countries should be of interest in Asia.
In this article, I explain what co-living spaces are, how it works when investing in co-living spaces, about the markets in the most interesting countries, and more.
What is a co-living space?
Co-living spaces are often started by companies who partner with local property owners to reduce leasing costs, to share the profits and financial burden.
Not rarely, these companies receive funding from investors to start or expand operations.
When a company has bought or leased parts of- or a whole building, they refurbish the units and install the modern amenities and utilities needed.
The units are small and with sizes of around 9 to 25 square meters with simple, but modern furniture like a bed, a desk, and a private bathroom.
Here, the idea is to spend time in the common areas, to socialize, and to engage in activities within the community. Many choose to live in co-living spaces to grow their network and to develop as persons.
Typical tenants are young persons who just arrived or that plan to stay short-term and cannot sign rental contracts stretching over 12 months.
That said, you also find locals who opt-in for co-living as it’s convenient and comparably cheap.