Co-Living a Solution to Unsold Inventory
Co-living may prove to be a boon for real estate developers amidst COVID-19 crisis in terms of unsold inventory. According to a recent JLL report, real estate had an unsold inventory worth ?3,70,000 Crore in the top seven cities at the end of March 2020. Co-living is a viable alternative to address the issue of the unsold inventory. Co-living implies staying together in managed accommodation spaces. The millennials migrating to urban areas either for higher studies or for better career prospects have fuelled the demand for co-living spaces in recent years. A JIL report has pointed out that developers are looking to monetize their unsold assets by offering it to co-living operators. This will not only increase the revenue sharing opportunities between the two but will also reduce the burden of unsold inventories. If real estate players can reach an agreement with co-living operators, this will be a win-win situation for both developers and co-living players.
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