Co-living segment gains traction in India; inventory to reach ~1 million beds by 2030

• Co-living demand & stock estimated at 6.6 million & 0.3 million beds respectively in 2025
• Co-living stock to reach ~ 1 million beds by 2030, 3X times compared to current levels
• Penetration to improve significantly, from 5% in 2025 to over 10% by 2030
• Co-living market can grow multifold and potentially reach close to INR 200 billion by 2030
• High demand-supply gap presents multiple opportunities in Purpose Built Student Accommodation (PBSA) sub-segment

Gurgaon, 08 May 2025: India’s co-living market is on an upward growth trajectory, with demand rebounding strongly in recent years and operators gearing up for expansion across Tier I cities and select Tier II cities. Currently estimated at around 0.3 million beds in the organized market, the inventory is projected to grow more than threefold and reach close to a whopping 1 million beds by 2030. The resurgence of the sector is being fueled by rapid urbanization and migration to cities, especially amongst students and young professionals who continue to seek flexible, relatively affordable, community-driven, and hassle-free housing options.

Following a temporary lull during the pandemic, the demand for co-living is regaining momentum, driven by the inherent strengths of the sector. Evolving demographic patterns, education & employment-driven urban migration, rising disposable incomes, and a growing preference for fully managed rental accommodations are all contributing to a sustained rise in demand for organized co-living spaces. Of the estimated 50 million migrant population in urban India aged between 20 & 34 years in 2025, the demand base for organized co-living sector in terms of beds is currently estimated at 6.6 million.

Co-living inventory, meanwhile, stands at around 0.3 million beds only, translating into a penetration rate of about 5%. Given the intrinsic nature of demand, leading operators are in an expansionary mode. As the co-living inventory is set to reach close to 1 million beds by 2030, penetration rates can significantly improve from 5% to over 10% by the end of the decade.

“India’s co-living sector is entering a new phase of growth, underpinned by strong demographic fundamentals and a growing preference for flexible, community-centric living. With rapid urbanization and a high proportion of migrant population, including students & young working professionals, the demand for organized rental housing, especially co-living, is likely to witness strong growth. Significant upside potential is anticipated to provide thrust to investor participation and operator expansion in the co-living sector. Resultantly, we expect market penetration to double from ~5% currently to over 10% by 2030. In fact, the coming years will be crucial in shaping a more structured, scalable, and investment-ready co-living ecosystem in India.” said Badal Yagnik, Chief Executive Officer, Colliers India.

Trends in India’s co-living market