Hyderabad is seeing a sharp rise in demand for co-living spaces, making it one of the top cities in India for this trend. These shared living setups are gaining popularity among students and young professionals, who are looking for affordable, convenient, and community-driven housing options.
Renting a co-living space in Hyderabad is significantly cheaper than renting a 1BHK apartment. A single occupancy co-living room costs between ₹10,500 and ₹17,300 per month, while a 1BHK flat typically ranges from ₹14,000 to ₹26,500. That’s a 25% to 35% cost advantage, helping drive the shift toward co-living.
Alongside Hyderabad, cities like Bengaluru, Mumbai, and Delhi NCR are also seeing strong growth in the co-living segment. These urban centers offer similar rental benefits, making co-living an attractive choice across India.
Nationwide, the organized co-living sector currently meets just 5% of the total demand. But that’s expected to change quickly. By 2030, the number of co-living beds is set to grow from 0.3 million to 1 million, and market penetration could reach over 10%. This demand is mainly driven by young migrants, aged 20 to 34, moving to cities for work or education.
According to Colliers India, the co-living market is poised to grow from ₹40 billion in 2025 to nearly ₹200 billion by 2030. Since 2015, the sector has already attracted over $1 billion in investments, with many operators choosing asset-light models like leasing to expand quickly.
Badal Yagnik, CEO of Colliers India, said the co-living industry is entering a new growth phase. With more urban migration and a growing migrant workforce, especially among students and young professionals, co-living offers an ideal housing solution. He expects more investors and operators to enter the market as the ecosystem becomes more structured and scalable by the end of the decade.
Most co-living providers in India follow long-term lease agreements, typically lasting 3 to 9 years, with property owners. Operators manage the spaces and sublet them to tenants. Other business models like revenue sharing and franchising are also gaining traction, especially in Tier-II cities.
In Mumbai, co-living beds cost between ₹15,200 and ₹27,500, compared to ₹19,000 to ₹42,000 for a 1BHK. The trend is similar in Delhi NCR and Bengaluru, where co-living remains 25% to 35% more affordable than traditional rentals.
Another key driver is the rise of Purpose-Built Student Accommodation (PBSA). As more students enroll in universities, campus hostels are falling short. In 2025, only 4 million hostel beds will be available for an estimated 12 million students, leaving a gap of around 8 million beds. This is opening up major opportunities for private PBSA providers.
India’s higher education enrollment rate is at 28.4%, with 43.3 million students currently enrolled. A large number of them come from other cities and need reliable housing near colleges, especially in urban hubs like Hyderabad, Chennai, Jaipur, and Dehradun.
Vimal Nadar, National Director of Research at Colliers India, noted that co-living solutions offer bundled services—like utilities, cleaning, and Wi-Fi—all included in the rent. These offerings match the needs of mobile, urban youth. He also pointed out that co-living investments yield returns of around 10%, much higher than the 2–5% returns from traditional rentals.
By 2030, experts expect organized co-living to expand not just in size but also in reach. Tier-II cities such as Indore, Visakhapatnam, and Coimbatore are already on the radar for investors and developers looking to tap into the growing demand.
