Real Estate Firm Puravankara To Set Up Its First Co-Living Space In Mumbai
Real estate firm Puravankara Ltd. will launch its first co-living space project, comprising more than 1,000 beds, in Mumbai, a top company official said Sunday.
The Bengaluru-based company has identified a project in Goregaon, Mumbai, to enter into this growing segment, said Managing Director Ashish R Puravankara. The realty firm, however, is yet to decide whether it would keep the business under a separate brand or partner with some existing co-living operators.
"Over the past few years, there has been a significant change in the buying behaviours of our customers, especially the millennials. They are more inclined towards co-living spaces that is more dynamic as compared to the usual rented space," Puravankara said. The market has evolved to suit the needs of this demand, he added.
"However, existing buildings are fitted out for co-living space, and most of the times, it may not meet the requirements. There is lacuna in terms of designs specific to co-living space," said Puravankara.
To address this lacuna, he said, the company would build projects that suit the co-living requirements. "As of now, we have identified Goregaon in Mumbai to mark our foray into the co-living space which would be about 3.50 lakh square feet... We are in the process of deciding if this is something we should start a new brand for or if a tie-up with an established co-living operator would work better," he said.
"We see this business as definitely being viable. Also the location in Goregaon is very strategically located. Also it's a part of our strategy to have a diverse portfolio and not just pure play residential," said Puravankara.
On investment, he said it would depend on the model that the company finally adopts.
As a sector, co-living spaces is a "real estate goldmine" that remains largely untapped and has the potential to become $93 billion market annually, NewsCorp.-backed PropTiger said in a recent report.