Service providers must focus on quality and rationalise rates to gain traction, a survey by PropTiger found
The co-living segment in India has the potential to grow into a $93 billion market if operators focus on improving the quality of services and charge reasonable rates, a customer survey by property portal PropTiger showed.
Quality of service, poor maintenance and lack of trust are key issues that service providers must address to exploit the true potential of co-living as an investment option, it stated.
The survey also found several gaps between demand expectations and supply even though service providers adopted different strategies for products meant for specific consumer categories.
Demand for co-living spaces is also increasing because of brand trust and ease of search, something PGs are not able to provide, the report said.
There is a huge variance in the average budget people keep for co-living spaces. Respondents who took part in the consumer survey were willing to pay between Rs 4,500 to Rs 33,000 monthly, depending on the number of beds in a room, the service quality, brand, and amenities they wanted.
The survey indicated that while the price is a key consideration, consumers are willing to pay for better amenities in a co-living setup. Respondents said they would shell out additional money for facilities such as air conditioning, washing machines and dryers, daily cleaning services, and water purifiers among others.
While some respondents stayed for as long as five years in co-living spaces, others moved out within three months. Issues with roommates, unsatisfactory food offerings and unresponsive management were push factors that force people to move out. People also move because of pull factors such as the desire for independent living and safety of belongings.
Lack of transparency in the renting process and service providers’ unresponsive approach towards maintenance facilities are some of the factors that act against this concept, leading to consumers moving to traditional housing options, the survey said.PropTiger.com is part of Elara Technologies, which also owns Housing.com, Makaan.com and FastFox.com.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.