New Delhi: Mumbai ranks 5th among 20 cities in Asia Pacific that can emerge as co-living destination, property consultant Knight Frank said on Monday.
New Delhi at 11th rank and Bengaluru at 19th are the two other Indian cities in the list, according to Knight Frank's report 'Insights on Co-living – An Asia-Pacific Perspective'. Beijing, Tokyo, Shanghai and Hong Kong are the top four cities in the list.
The report covers 20 major Asia-Pacific cities classified into six key attributes that are likely to contribute in fostering the growth of co-living.
The six attributes are tech & financial hub, venture capital deals & growth, housing affordability, university population, general population & human development index, and quality of life.
"With a weighted average score of 65.94 across six basic parameters, Mumbai (5th) has emerged as the top potential market for co-living in India due to higher prices, rapid and continuous gentrification as well as its unchallenged position as India's top economic centre, offering vast opportunities for growth of the co-living sector," the consultant said.
Job opportunities in the financial sector and low housing affordability are major driving factors for the growth opportunity in the co-living sector in Mumbai with 55% weightage as per the co-living Index, the statement said.
Mumbai's large population is another major factor that offers scope for market penetration by domestic co-living operators.
"288% spike in the venture capital deals in Mumbai is a significant factor accounting for quality of job creation resulting in growth opportunities for co-living sector." Bengaluru (ranked 19th) is third Indian city after Mumbai and New Delhi.
Co-living innovates by providing a curated social environment that builds upon the community via three distinguishing characteristics; shared spaces, events and community.
The rise in deal flow is a key indicator of the quality of job opportunities which are being created in the financial hub and a ready demographic pool which the co-living operators can cater to, given the omnipresent shortage of quality rental housing dwellings near employment hubs.
New Delhi features on the co-living index at 11th position. Despite a relatively higher housing affordability than Mumbai, the general population and human development index in New Delhi is much higher than that of Mumbai, making it an apt choice for co-living operators to expand in as this is a key demand driver.