Rental HousingThe Union Budget 2019-20 has given major focus on the Rental Housing segment of India. Formulation of stricter norms, tax holiday for developers and drafting a revised Tenancy act are some of the norms which the center has been trying to implement to give a push to the segment like never before. Due to this, some of the established real estate firms of the country are now shifting their focus to the rental housing just to expand their existing residential portfolio.

Today, many new real estate investment avenues have arrived in the rental housing market which is not only becoming popular among the end-users but are also providing huge benefits to the realty firms and companies. CoLiving and Student Housing are two important categories which are mostly favoured by most of the developers. 


CoLiving Homes are rented fully-furnished housing units that provide each and every facility to the tenant. It is a community shared by like-minded tenants mainly working professionals who used to travel to different places for work or have to shift from one city to another on a regular basis. The concept of co-living involves sharing of common areas like kitchen, balconies, etc. to experience cheaper rent. Today, there are many startups who have forayed into the coliving business so as to earn more profit from a single housing unit. Cities like Bangalore, Pune, Delhi, and NCR have seen the increasing demand for such spaces in recent years.

Seeing this momentum, leading developers like Mahindra Lifespaces, Godrej Properties, and Lodha Group are spreading their legs into coliving spaces by investing in such start-ups.

Also Read : All you need to know about Co-living Rental Housing in India

Student Housing

Just like Coliving spaces, student housing is also a rental housing category under in which the developer mainly focuses on developing shared spaces for the students. Being, an education hub student from all across the world shifts here to complete their higher or professional studies. Due to the increasing number of the student population, universities and institutions fall shorts of beds in their hostels. This led to an increase in demand for PG accommodations which asks for higher rents minimizing all the facilities. Here the concept of student housing comes into focus. Today, there are many startups like Nestaway, Zolo, Coho, placio have taken over the market in this segment. These firms not only provide beds to students in affordable rates but also provide them a home-like feeling with various recreational facilities. A student can rent as per their requirements.

While the startups are already doing well, renowned developers have also forayed into this segment seeing the profit charts. Firms like Shapoorji Pallonji Real Estate and Brigade Group have already planned to develop such projects. For instance, SD Corp., a joint venture between Shapoorji Pallonji and Dilip Thacker group, has decided to develop a single residential tower for student housing in their 55 acres integrated township ‘Sarova’ in Kandivali East, Mumbai.

Also Read : Student Housing: Needs and demands in India

Point of Attraction

According to real estate experts, with residential real estate market offering a limited profit and return on investments, developers are now shifting their focus to rental housing. Many of them have already entered, while some others are evaluating opportunities to spread their wings to expand their residential portfolio.

Moreover, there are some developers who are currently investing in coliving and student housing startups just to figure out and understand the market. The idea is to first garner some profit and then finally enter the market.

Another expert suggested that at present, rental housing is dominated by either startups or Tier-2 developers or homeowner with lots of properties. A constant focus on rental housing will not only help leading developers to come out of their financial crisis and logjam of unsold inventories but also will revive the Indian real estate market.