Colocation has always existed, but a recent market trend is growing. It’s co-living. It corresponds to new needs expressed mainly by the Millennials generation. It seems that this trend is sustainable. It could give rise to a new class of real estate assets. Some investors are starting to take a very close interest in it.
Services such as carpooling or long-term rental are developing very quickly. Younger generations are no longer necessarily looking to buy a car or an apartment. We gradually move from the “need to own” to the “need to enjoy”.
In addition to this new basic trend, the proportion of adults aged 30 to 50 living alone in the major cities of the Western world is growing strongly.
Moreover, rents continue to rise in city centres. They have simply become unaffordable for many young employees.
These three phenomena alone explain the very strong growth in the United States and Europe of co-living, this new way of living.
Operators such as MEDICI LIVING GROUP, OLLIE or WELIVE and architects such as Grace KIM have developed real estate assets specially adapted to meet these needs.
These buildings offer individual and private spaces, alongside shared spaces such as living spaces and kitchens. In most cases, they also offer a range of related services that make life easier for tenants or promote the development of social ties.
Most often located in the city centre, they allow you to walk or cycle to work while limiting the amount of rent.
MEDICI plans to develop 35 such buildings in Europe over the next 5 years.
Investors are ready to follow: The 3 assets that the group has opened in the United States – 2 in New York, 1 in Chicago – are more than 96% occupied.
Photo : WeLive/WeWork