Writer: Nuttawut Kulkaew

Editor: Wittaya Wonglor

Recessions force both landlords and tenants in big cities to adapt.

Young people from Gen Y are looking in the post-COVID world for a comfortable lifestyle and convenient location within their incomes. Singles and young families are looking again at housing with common areas to save costs. Co-living in mixed-use or standalone projects is often in downtown areas, with 2 main types:

1. Long term

 Long-term leases appeal in the Asia-Pacific, where co-living can meet a variety of needs. Friends might want to stay together until old age. A family might want to save money and is happy sharing areas with other families. Real estate projects might want to change the perception of nursing homes. Shared areas can include kitchens, living rooms, dining rooms, working areas, and gyms.

Site managers or project owners can offer services ranging from recreational activities to health services and relationship building. Responsibility for personal and public spaces should be clear, including the scope of use of common areas. Residents could sign an agreement. But project developers can manage this issue through design of usable areas, services, and usage rules based on the behavior of real residents. A survey found that 79% of residents want common exercise spaces. Workspaces like co-working area should be open 24 hours a day and most residents want to have well-decorated common areas.

2. Temporary with a purpose

 The use of common areas depends on the purpose and length of stay. Tourists might stay for a short period. Contractors or students might stay longer. Travelers in hotels, hostels, villas, motels often stay a short while with a definite timeline. But rooms might sometimes all be full or empty. Owners need strategies to promote their space on different platforms and should have effective guest relationship management strategies.

Students and contractors might use dormitories or co-working spaces with beds. These properties are common in university towns and in cities with economic opportunities or many foreign residents. Spaces may be serviced under contractual obligations or leases with educational institutions or companies. The service provider can offer services through the “subscription economy” such as cleaning, deliveries, internet connection.

Implications for the future:

- Developers can reach new customers and gain long-term income through opportunities for people with low purchasing power.

- Furniture and storage can be integrated into real estate management to appeal to consumers.

- Tokenization that lets investors own portions of high-value real estate through “fractional ownership” can help drive the economy.

References:

- https://www.makreo.com/report/india-co-living-space-market-performance-and-future-outlook-to-2025

- https://www.futuresplatform.com/blog/3-trends-driving-future-cities-and-urban-living

- https://www.mdpi.com/2071-1050/13/22/12607/htm

- https://www.globenewswire.com/news-release/2022/04/07/2418862/0/en/Co-living-Market-in-India-is-Expected-to-Cross-USD-1-0-billion-Mark-by-2025-Strongly-Driven-by-Student-Population-Preferring-Affordable-Housing-with-Amenities.html

- https://oecd-opsi.org/toolkits/living-futures-scenario-kit/

- https://www.peterfabor.com/posts/8-types-of-coliving-properties-and-concepts

- https://contextbd.com/how-can-the-co-living-housing-model-be-sustainable-in-the-future/

- https://www.fastcompany.com/90733353/the-takeaways-from-35-co-living-projects-were-distilled-into-these-experimental-designs

- https://www.dwell.com/article/future-of-coliving-covid-19-pandemic-1937333b

- https://kintell.com/articles/the-future-of-coliving

- https://designwithma.com/insights/co-living-planning-for-organic-growth-and-evolving-expectations-part-1-generations-on-the-move-and-their-evolving-vision-of-future-living/

- https://medium.com/coliv/co-living-3-0-what-does-the-future-of-coliving-look-like-381d39edffa6

- https://medium.com/builders-studio/the-future-of-shared-living-5-bold-scenarios-straight-from-the-collective-mind-of-the-field-53fc8661bbdd

- https://www.psychologytoday.com/au/blog/living-single/202207/who-lives-alone-in-midlife

- https://www.highincomeproperty.com.au/co-living-property/

- https://bungalow.com/articles/what-is-coliving-everything-you-need-to-know-about-this-popular-housing-type

- https://www.cbre.us/-/media/cbre/countryunitedstates/media/images/multifamily/innovation-watch/co-living/021420_innovationwatch_january-2020-fw.pdf

- https://www.jll.co.th/en/newsroom/co-living-next-big-thing-in-thailands-real-estate#:~:text=Co%2Dliving%20space%2C%20a%20term,TV%20room%20or%20a%20gym.

- https://jacobjay.medium.com/a-classification-of-coliving-models-5cd3ff3a7883

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