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How Covid 19 has affected Co-Living Sector?

Indian Real Estate

How Covid 19 has affected Co-Living Sector?

By Dan EK

21, January 2026

The COVID-19 pandemic has hit the whole world ferociously. It has taken lots of lives, jobs, and business, to just name a few. This is one of the most deadly viruses the human race has ever faced. The lockdown that the governments all over the world have implied also have huge disadvantages.

Due to COVID-19, several businesses have suffered and most notably the Co-living sectors.

Co-living is the new way of living in this modern world where lots of people travel very far for different purposes. Co-living is a way in which many parties live together, either in a single room or sharing a room with common bathrooms. The main idea behind this living process is to promote social interaction and togetherness among the tenants through community events. But due to COVID-19, people now need to practice social distancing, and the idea of living together is not the best way to do it.

The effect of COVID-19 on Co-living sectors

Many of the Indian real estate businesses are suffering at the moment, and one of these segments is Co-living. Due to the implementation of work from home in the very office, employees are not required to be physically present in the office. The government has already held a lockdown for three months which gave the Indian real estate market a huge blow. As the office works along with students went back to their houses and left their rented apartments. After the lockdown in 2020, the future of co-living looks bleak as the Indian real estate market is suffering just like any other business.

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The main target of this renting apartment in the Indian real estate segment is based on the number of people coming from outside the city. The pandemic era has pushed the world into chaos. Everyone wants to live a normal life and work like they used to do before. But in this pandemic era, no of the normal things are looking possible at all. The Indian real estate's Co-Living segment is only working at 20%-30%, as many of the tenants are moving back to their hometown. It is expected that once the pandemic ear is over, the Co-living sector will flourish even more. This is estimated because everyone will be back from their home town and would want to look for the best deal possible.

Will Co-living rentals increase or decrease due to Covid-19?

At the moment, it is very unlikely that the Co-living segment is going to have a rise in the market. Besides that, the rentals homes may also charge up to 40% more this time. This rise of 40% will be seen due to the increased sanitary conditions of the houses. As the tenants and the owners want both want to live the cleanliness and safety are going to be one of the major concerns. Besides that, the 40% upraise will only be paid if the owners provide the facility and whether the tenants want to avail of those services.

It is believed that in the short term, there is going to a downfall in the demands of rentals houses. The demand for rental houses is also very low as very few people are now living outside their home town. The colleges and offices being closed and work from home segments, with home offices, are the main reason for this downfall. But this does not mean that the Co-living segment is going to suffer a loss forever. In the long run, the Co-living segment is going to flourish due to the larger number of people moving back to their colleges and offices after the pandemic. When the entire returning people look for new houses rent and live in the situation is going to get better.

Impact of Co-living business due to Coronavirus

In this current market, the levels of occupancy are very low all over the world, as well as in India. There is no guarantee that the business will flourish after the pandemic is over. This is because a lot of factors are going to play a very important role. Some of the few factors that will affect Co-living in the future include satiation, cleanliness, owner's chargers, risk of renting the property, new rules, and many other small changes. It is also believed that the rate charges will also increase due to the loss in business in the pandemic. The business model will also change as the developers and owners will add new rules and policies in the contract to supports their needs as well.

The main essential that people will now look at before renting a room is going to be hygiene. Besides, that not only the tenants will look for hygiene but also the room owners. The facilities of clean and sanitized rooms will be deeply appreciated by the buyers. But these new changes will surely cost the invertors and owners of the rooms. All the new changes will directly reflect on the monthly rent as well as the contracts of the rooms. Besides that, the investors need to find a way to promote their rooms once everything is back to normal.

But one thing that everyone should always keep in mind is that not everyone can afford everything. The students who are on a tight budget or the office employees on fewer payrolls may find it difficult. This will be a problem because once the owners make all the necessary changes, they will surely increase the price of the room. The problem will arise when people want all the safety facilities on a tight budget. This unsold dilemma may help the Co-living segment or destroy it.

Benefits of COVID-19 on Co-living sectors

The Co-living sector indeed took a huge blow in the lockdown period. But it may be a blessing if used in the right way. The market right now is cut into two halves organized players and unorganized players. The share brand segment in real estate is less than 1% in inventory. It is calculated that there are not even the same number of beds to meet the number of people looking to rent a place.

The benefit is going to the organized players if they move quickly. At the time of the pandemic, certain rules were very important. The rules stated that social distancing is important, cleanliness is necessary, hygiene is mandatory and much more. Now there are lots of companies as well as the school that is looking for new places with all these facilities. For example, a college has 1000 students in total but only has 800 beds in the hostel. Previously the reaming 200 would find a place on their own. But after the pandemic letting someone stay in an unhygienic area and then interacting with them is dangerous. So, that is why the college will now look for accommodation in an organized place with all the facilities that the college protocol follows.

Overall all these factors might come to play only after the pandemic is over. The Co-living segment is suffering just like any other business right now. So, it's best to say that no one can predict what is going to happen soon. STAY SAFE AND STAY HOME.

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