Due to the rise of the sharing economy, the coliving sector is becoming a popular choice for young professionals looking for a cost-effective, community-driven living arrangement. This has piqued the interest of many investors.
For example, UK operator The Collective, backed by DTZ Investors, announced plans to raise upwards of ยฃ650 million for a coliving fund that will hold a portfolio of six to ten assets in an effort to attract ยฃ1 billion of investment over the next decade.
โRecent deals and the launch of new partnerships prove that the coliving sector can finally shake off any notion that it is simply a fad,โ said Richard Lustigman, director of coliving capital markets at JLL. โWith young, fresh leaders on the operating side, itโs a sector which is now blossoming in its own right.โ
According to JLL, In Europe alone, 60% of the 23,000 coliving beds became operational in just the past two years. Moving forward, JLL predicts that it will evolve to cater to a large tenant base. This could include spreading to other residential sectors such as student housing or senior living.
