Coliving Tenants Expected To Branch Beyond Young Professionals
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 £650 million for a coliving fund that will hold a portfolio of six to ten assets in an effort to attract £1 billion of investment over the next decade.
“Recent deals and the launch of new partnerships prove that the coliving sector can finally shake off any notion that it is simply a fad,” said Richard Lustigman, director of coliving capital markets at JLL. “With young, fresh leaders on the operating side, it’s a sector which is now blossoming in its own right.”
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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.
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