Co-living is already the next big thing in Indian real estate along with co-working, student housing and senior living. Out of these market drivers (which have already drawn several domestic and foreign biggies to our shores), Kolkata’s real estate market is being propped up by the co-living segment along with the demand for good PG accommodation which is an extension of the same. The city’s real estate sector, as per its industry players and market experts, has a major role in catering to the continually increasing demand for PG (paying guest) accommodation and also co-living spaces from IT and ITeS professionals and those working in linked industries, particularly in belts like New Town and Salt Lake.
Both of these are highly developed housing markets already. Salt Lake is a slightly more premium residential township which is well-planned and has wide roads, top notch social and civic infrastructure and Sector V which is the showpiece IT and ITeS cluster of the city in tandem with several commercial zones. New Town, on the other hand, is widely regarded as the gateway to the new Kolkata. It is already home to several MNCs, IT behemoths, start-ups, educational institutions and technology companies.
As a result, New Town already scores high in terms of residential real estate with sizable demand spurring leading developers to come up with premium projects such as Mani Artista and Tata Avenida among many others. However, co-living and PG sectors are now spurring more growth in realty markets across these areas.
How co-living/PG segments are doing the trick for Kolkata real estate
The otherwise unorganized PG/co-living sector will soon witness the development of a highly positive ecosystem as per administrative leaders such as HIDCO Chairman & Managing Director, Debashis Sen. Here are a few market trends to watch out for in this regard:
- Millennials employed in the major IT and ITeS zones in Kolkata prioritize overall proximity to their workplaces along with social amenities nearby.
- Demand is the highest for PG/co-living accommodation in New Town and Salt Lake.
- Brokers in these sectors have reportedly been receiving higher enquiries on a daily basis.
- The average rentals for PG/co-living accommodation usually stand at anywhere between Rs. 5-10,000 on a monthly basis as per reports.
- People who are employed in junior positions in IT and ITeS organizations and ancillary entities are the biggest customer base in these categories as per studies.
What else is being observed by the experts?
HIDCO Chairman and Managing Director Debashis Sen has already stated that with India being home to a predominantly younger population (close to 50%), they are continually migrating from one place to another for professional and educational opportunities.
Here are some other interesting observations:
- This is a segment that requires good co-living/PG spaces as per experts in order to offer better experiences to customers.
- However, the sector is still not organized suitably as per industry experts and the real estate sector in the city can play a vital role in bringing it under its wings as opined by Sen.
- CREDAI, the apex body for real estate developers, has reportedly stated that these sectors may have helped the Kolkata real estate sector overcome obstacles in the past like lower realty demand and growing unsold inventory.
- As per previous reports, 72% of millennials preferred co-living while more than 55% preferred renting co-living spaces between the ages of 18 and 35.
- These reports covered the major Indian cities including Kolkata.
- Social amenities and other basic infrastructure remain top priorities for millennial renters along with easier commutes to their offices.
- There are many people who do not wish to purchase a home since they continually shift between cities for professional purposes.
- In case a co-living/PG space is located near their office and other basic facilities are provided, these people do not have a problem in forking anything between Rs. 5-10,000 as mentioned earlier.
- CREDAI officials have reportedly opined that GST and RERA are disruptors only for the shorter term and not in the long haul.
- These measures will aid the realty sector in the long term and make it more transparent.
- CREDAI senior officials also feel that the Government may consider benefiting both the end buyer and developers by deciding to charge only a single tax in place of separate stamp duty and GST.
As can be seen, Kolkata’s residential real estate sector is being given a helping hand by the co-living/PG categories. This trend should only grow in the near future as per several industry experts.
Several other areas could witness growing demand, depending on their connectivity to major commercial/business hubs. Some of the prospective PG/co-living hubs of the future include Kasba, EM Bypass (southern Bypass connector from Garia), Lake Town, Baguihati and Beliaghata.