(The following content is written by Mayank Pokharna. You can reach out to him in case you want to chat more about all things coliving)
If you came to this article directly, consider going through the series of articles it is a part of. Please find the link to the other articles in the Coliving fundraising and investment series here:
- The Rise of Coliving Investments
- What Makes Coliving a Profitable Investment?
- Types of Coliving Business Models Investors Should Know
- Securing Capital: Fundraising Strategies for Coliving Businesses
- Key Factors to Consider Before Investing in Coliving Space
- How Legal and Regulatory Aspects Can Impact Coliving Investment
- Case Studies: Successful Coliving Ventures and What Investors Can Learn
- Opportunities and Risks: Is Coliving a Safe Investment?
- How to Get Started with Coliving Investment Today
- Why Coliving Investment is the Future of Real Estate
- Ready to Invest? Start Your Coliving Journey with Us
The real estate market is undergoing a transformation, and
coliving is emerging as a promising investment opportunity. This innovative concept blends private living spaces with shared areas and amenities, meeting the evolving needs of modern tenants such as digital nomads, young professionals, and students. Coliving addresses multiple challenges in today’s urban environments—housing affordability, loneliness, and flexibility—making it an attractive option for both tenants and investors.
“In an era where experiences matter more than ownership, coliving is not just housing—it’s a movement redefining the way we live, work, and connect.”
Coliving Course
If you are a coliving founder looking to start a coliving business, Everything Coliving has launched a Coliving Course . Its a milestone-based, community-driven, action-oriented program that helps you build your coliving business sustainably.
If you are just starting or operating a portfolio, this program can help you take your coliving business to the next level. Currently, 30+ coliving founders are going through the program. Some of them are just conceptualizing, and some of them are operating 300-400 unit portfolios.
A Solution to Key Market Challenges
Coliving responds to several issues facing cities around the world, including:
- Housing Affordability: In many urban centers, young professionals struggle with high rent. Coliving offers a cost-efficient alternative by distributing expenses across tenants.
- Community and Social Needs: With loneliness becoming a growing concern, coliving fosters community through communal spaces and organized events.
- Flexible Living Arrangements: Whether it’s a short-term stay for a digital nomad or a year-long lease for a professional, coliving provides tenants with adaptable housing solutions.
This combination of community and convenience explains why occupancy rates remain high in coliving spaces, even during times of economic uncertainty.
The Appeal for Investors
Investors are increasingly drawn to coliving because it offers:
- High Occupancy Rates: Shared spaces reduce vacancy, ensuring consistent rental income.
- Resilience in Economic Downturns: Coliving outperformed traditional rental markets during the COVID-19 pandemic, with demand remaining stable.
- Alignment with ESG Goals: Coliving aligns with Environmental, Social, and Governance (ESG) principles, appealing to socially conscious investors.
A report by Savills shows that 51% of European investors plan to invest in coliving over the next three years, with projected capital commitments of up to €2.6 billion. Furthermore, institutional investors and private equity firms are increasingly backing coliving operators, signaling growing confidence in the sector.
Coliving as a Profitable Real Estate Model
Coliving offers opportunities for higher rental yields compared to traditional real estate. Since tenants share rent, utilities, and maintenance costs, operators can reduce operational expenses while maintaining competitive pricing. This profitability, combined with the ability to scale operations efficiently, makes coliving attractive to investors looking for stable, long-term returns.
Success stories like Cohabs raising $450 million and The Social Hub securing €145 million in impact funding highlight the sector’s potential. With flowing capital from private equity firms and venture capitalists, coliving has established itself as a serious asset class in real estate portfolios.
An Evolving Sector with Global Appeal
The popularity of coliving isn’t limited to a single region—it’s a global trend. Cities with housing shortages and high living costs, such as London, New York, and Dubai, are embracing coliving as a viable solution. Simultaneously, lifestyle-focused coliving spaces have emerged in Costa Rica, Bali, and Lisbon, catering to digital nomads seeking remote work-friendly accommodations.
As the sector expands, new business models are emerging, from asset-light models where operators lease and manage properties to mixed-use hubs that blend coworking spaces with communal living. Investors have an opportunity to diversify their portfolios by tapping into these innovative living models.
Why Now is the Right Time to Invest
With rising urbanization, millennials and Gen Z are actively seeking community-oriented housing options. As the demand for flexible, shared living arrangements grows, coliving is positioned to thrive. Additionally, institutional investors like Ares Management and Ivanhoé Cambridge are showing confidence by injecting large sums into coliving developments, further validating the sector’s potential. Given the ongoing shifts in work, lifestyle, and housing preferences, investors who enter the coliving market now stand to benefit from:
- Strong rental yields are driven by high occupancy rates.
- Operational efficiency through shared amenities and flexible leases.
- Long-term growth as the demand for affordable, flexible living options continues to rise.In summary, coliving is not just a fleeting trend—it represents the future of urban, rural, and destination living. Investors who act now can align with the changing market landscape, capitalize on rising demand, and build portfolios that are profitable, resilient, and socially impactful.