Emerging Trends in Co-Living

Explore the growth and investment potential of the co-living sector in urban areas, read the Emerging Trends in Co-Living 2024.

Sectors Co Living shutterstock 1719368431
600,000
POTENTIAL CO-LIVING DEMAND POOL IN LONDON
5,000
CURRENT SUPPLY OF LONDON CO-LIVING BEDS
4.75%
YIELDS FOR UP AND BUILT EXISTING LONDON STOCK, DEPENDING ON LOCATION, SCALE AND SPECIFICATION

Key Insights

Strong rental performance

Co-living schemes have surpassed expectations in lease-up speeds, proving both rents and demand.

Co-living is growing outside of London

Co-living is not just a London-centric phenomenon; its strong uptake is gaining traction in regional cities, expanding the potential investment landscape.

Broad tenant appeal

The co-living sector attracts a diverse range of tenants, both in terms of age and income levels. This highlights its widespread appeal across various demographics and economic backgrounds.

Planning policy developments

A growing number of London boroughs now have a co-living policy, and the GLA have proposed space standards.

Successful investment

Look for high PTAL rating, obvious demand drivers, operational backing, and clear approach to affordable housing contributions.

Co-living operators

The availability of specialist co-living operators is facilitating investment.

Repurposing of existing buildings

Trends show an increasing interest in converting office buildings and hotels into co-living spaces, providing new investment avenues.

Design focus and community ethos

A high-quality living environment, larger rooms and social ethos are features of 2nd generation co-living.