Coliving, coworking and student housing emerged as “sunshine” real estate asset classes in early 2020, delivering rental yields of about 7–11 percent versus the 3 percent national average from traditional residential formats. A CII–ANAROCK report titled Emerging Asset Classes: The Future Looks Promising highlighted how these models were reshaping India’s rental market and attracting both institutional and private investors.anarock​

Higher yields than traditional rentals

• Coliving, coworking and student housing were estimated to generate rental yields in the 7–11 percent range, compared to roughly 3 percent for conventional housing leases across India.​
• This yield premium stemmed from per‑bed or per‑seat pricing, higher occupancy levels and service-led models that allowed operators to charge more than bare-shell rentals while still keeping per-user costs attractive.​

Drivers of demand

• The report attributed growth to changing social dynamics, rising migration of students and young professionals, and the preference of millennials for flexible, plug‑and‑play housing and workspaces over long-term ownership commitments.​
• A highly enabled start‑up ecosystem, deeper internet penetration and app-based aggregation of beds and desks further fuelled demand for shared real estate, especially in major employment and education hubs.​

Scale and formats in early 2020

• Top coliving operators together controlled around 1.18 lakh beds nationally in early 2020, typically priced between about ₹6,000 and ₹30,000 per month depending on city, microlocation and amenity package.​
• Branded student housing players had roughly 1.5 lakh beds across India, often clustered around large university towns and educational corridors, positioning themselves as an upgrade over unorganised PGs and hostels.​

Business model evolution

• Coliving, student housing and senior living were identified as the next evolutionary step in the residential domain, while coworking was seen as an evolution from traditional office space, shifting from pure real estate to an experience and services business.​
• The model typically bundled furniture, Wi‑Fi, housekeeping, utilities, security and community events into a single monthly fee, reducing friction for tenants and creating annuity-style revenue streams for operators and asset owners.​

Investor and city trends

• The above-average yields and annuity income nature of these assets drew strong interest from private equity investors, developers and family offices looking to diversify beyond vanilla residential projects.​
• The report noted that data centres could deliver even higher yields of 10–14 percent, but within the living and working space, coliving, coworking and student housing were the most prominent new asset classes, with investors favouring metros like Mumbai, Pune and Bengaluru for early-scale plays.​

  Anarock, CII, CII-ANAROCK, Coliving, Coworking, Rental Yields, Student Housing