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Realty firm Puravankara Ltd is entering into co-living segment and will develop its first project, comprising over 1,000 beds, in Mumbai, a top company official said.
The Bengaluru-based company has identified a project in Goregaon, Mumbai to enter into this growing segment, its MD Ashish R Puravankara said.
However, the company is yet to decide whether it would foray in this business under a separate brand or would partner with some existing co-living operators, he said.
"Over the past few years, there has been a significant change in the buying behaviours of our customers, especially the millennials. They are more inclined towards co-living spaces that is more dynamic as compared to the usual rented space," the MD told PTI.
The market has evolved to suit the needs of this demand, he added.
"However, existing buildings are fitted out for co-living space and most of the times, it may not meet the requirements. There is a lacuna in terms of designs specific to co-living space," said Ashish.
To address this lacuna, he said, the company would build projects that suit the co-living requirements.
"As of now, we have identified Goregaon in Mumbai as our foray into the co-living space which would be about 3,50,000 sf ft. At this juncture we are in the process of deciding if this is something we should start a new brand for or if a tie up with an established co-living operator would work better," he said.
In this project, the company would develop 1,000 plus beds in 1 and 2 BHK configuration.
"We see this business as definitely being viable. Also the location in Goregaon is very strategically located. Also it's a part of our strategy to have a diverse portfolio and not just pure play residential," said Ashish.
The company is in talks with few co-living operators and it is in the process of analysis between an operator based model or having its own separate brand for the same.
On investment, he said it would depend on the model that the company finally adopt.
In its latest report, News Corp-backed PropTiger has said that co-living has potential to become USD 93 billion market annually and termed this segment as "real estate goldmine" that remains largely untapped.
OxfordCaps, Stanza Living, Zolo, Yourspace, Coho, Stayabode, Colive, Hamstead, Placio, NestAway, RentMyStay, Rentroomi, SimplyGuest and Flathood are major players in the co-living segments providing rented space for students and working professionals.
OYO and Housr have recently entered into this space. PropTiger has recently acquired Fastfox.com that helps people in getting rental accommodation.
Puravankara reported a 63 per cent rise in consolidated net profit at Rs 43.24 crore for the June quarter as compared to Rs 26.46 crore in the year-ago period.
Total income during the June quarter rose 64 per cent to Rs 645.55 crore from Rs 394.70 crore in the corresponding period of the previous year.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)