In an interview with REM TIMES, Maninder Singh, CEO and Co-founder of Yello! Living, sheds lights on the rising market of co-living
A new phenomenon that is taking the Indian real estate sector by storm is co-living. Witnessing a rapid growth over the last several years, the co-living market in India is poised to grow at a compound annual growth rate (CAGR) of 17% from 2020 to 2025, reaching a value of US$40 billion by 2025, as per a report by Cushman & Wakefield.
In such a dynamic scenario, Yello! has made a grand entry in the bustling Indian IT capital of Bengaluru, with a mega co-living project called Yello! Living. Situated near ITPL, the IT hub of Bengaluru, Yello! Living is an expansive community that encompasses 608 rooms spread across five modern blocks, offering a total of 85,000 square feet of shared living space designed for comfort, connection, and growth. With private and twin-share rooms, all thoughtfully designed for everyday needs and a host of amenities, the space is inspired to connect and grow with like-minded individuals through engaging events and activities, fostering a sense of belonging and personal development.
REM TIMES caught up with Maninder Singh, CEO and Co-founder of Yello! Living, for a chat on the company’s vision and strategies and his take on the galloping growth of the sector in India.
In India, the co-living sector is not only rebounding from the pandemic lows but also flourishing as a result of several interrelated factors. To begin with, the flexibility that co-living offers perfectly aligns with the surge in demand for convenient and affordable housing that has resulted from the return to offices and increased hiring.
In addition, senior executives and young couples are turning to co-living and other affordable alternatives due to the congested rental market and growing rents. But the price is not the only factor. Rather, it is the sense of community fostered in these spaces, coupled with hassle-free amenities and flexible arrangements, that resonates deeply with today's dynamic lifestyles.
Finally, by focusing on high-quality experiences and broadening their offerings, co-living operators are proactively adapting to this shifting demand. This perfect mix of necessity and innovation positions co-living as a key player in shaping the future of India's urban living landscape.
Our co-living is in a prime location. Moreover, we have seen the phenomenon of an average occupancy rate of 200 beds, which includes both private rooms and short stays. In a couple of months, we were able to provide a co-living space that has offered an easy transition and adjustment for its residents. With 600+ rooms at Yello, we are facilitated in catering to all the diverse needs and lifestyles by giving them options of shared accommodation, private rooms, or premium private suites (with studio units coming soon).
Our main focus is on fostering a lively community and interaction among residents. Hence, we designed ample open areas, sports facilities, and health-focused amenities that encourage residents to further connect and thrive. What's more, we believe that openness is essential, which is why we make sure that our tenants are aware of everything up front with our clear and complete pricing system. We also provide both short-term and long-term stays, giving residents the freedom to choose what works best for them.
Maninder Singh, CEO and Co-founder of Yello! Living
Technology is the foundation of all of our daily operations. From the first customer touch point, when a lead is generated, to the last, we use automation to contact customers and AI for interaction to understand their needs before calling them. This enables us to identify client expectations and resident experiences. Our user-friendly property management software allows tenants to pay bills, make repair requests, and check in themselves.
To make things even better, we have property management software that helps customers easily check in and raise service requests, bill payments, etc. We also have a robust backend system in place that our property manager makes use of. There, we are creating a dashboard for the landowner to see and for them to understand how their property is performing.
Recently, both the co-living sector and the Indian real estate market have shown some intriguing trends. We have seen an increase in foreign investment as metro cities continue to grow and demonstrate good vertical expansion within their core businesses. When it comes to investment opportunities and diversification, new asset classes, such as fractional ownership, are emerging every other day.
When we talk about co-living spaces, we can see that larger projects are gaining traction as landowners and developers have recognised their potential as an attractive asset class. Remarkably, co-living is starting to gain traction among senior populations as part of a new trend. There is also a projected increase in the demand from professionals and individuals for short stays (one week to one month). Co-living's contribution to the technology sector is increasing its appeal and effectiveness.
The co-living and real estate industries' current tendencies point to a future with creativity, flexibility, and an increasing emphasis on taking care of a wide range of requirements and lifestyles.
Maninder Singh, CEO and Co-founder of Yello! Living
We plan to grow swiftly while remaining committed to resident’s happiness and satisfaction. Then, to provide our property owners with outstanding value, we are actively growing this property from 600+ rooms to 1000+ beds. Apart from this, at the same time, we are making significant investments in both strong system expansion and infrastructure development to guarantee efficient operation across all of our areas.
Beyond our current footprint, we are actively engaging with landowners who recognize the potential of our model. These conversations are paving the way for similar large-scale co-living facilities on their lands, broadening our reach and impact.
Furthermore, we see immense potential in Hyderabad, a city with a demographic and audience profile similar to Bengaluru. Given this, we believe it is an excellent choice for our second location, where we can serve a larger clientele while maintaining our commitment to community living and fundamental principles.
