Puravankara Ltd is going to launch its first co-living space project in Goregaon, Mumbai.

By Abhay Shah, Realty Quarter

The real estate company Puravankara Ltd is entering in a co-living segment and is developing its first project, which includes more than 1,000 beds, in Mumbai, said a top official.

The company based in Bengaluru has identified a project for this growing segment in Goregaon, Mumbai, said MD Ashish R Puravankara. The firm still has to decide, however, whether it would go under a distinct brand for this business or partner with certain current co-living providers.

“The buying behaviour of our customers, especially millennia, has undergone significant change in the past couple of years. They are more inclined towards co-living spaces that are more dynamic than the usually rented space,” the MD said. He added that the industry has evolved to meet the requirements of this demand.

“Existing buildings, however, are fitted out for co-living space and may not, in most cases, satisfy the demands. There is a lacuna as regards to designs for co-living spaces,” Ashish said. He said the firm would create projects to meet co-living demands and to tackle this gap.

“We recognized Goregaon in Mumbai as our foray into co-living space, which is 3,50,000 sq ft. At this juncture we are discussing whether we should begin the new brand, or whether it would work more effectively to bind ourselves to an existing co-living operator,” he said. The firm is developing 1,000 plus beds in 1 and 2 BHK configurations in this project.

“We think that this business is certainly feasible. The place of Goregaon is very strategically located. It’s also a component of our plan to have a diverse portfolio and not just a simple housing play,” Ashish said.

The firm is in discussions with some co-living operators and is analyzing a model, based on an operator or with its own respective brand for the same.

Investing depends on the model eventually adopted by the company.

The main players in co-living sectors offering rental services for students and working professionals are OxfordCaps, Stanza Living, Zolo, Yourspace, Coho, Stayabode, Colive, Hamstead, Placio, NestAway, RentMyStay, Rentroomi, SimplyGuest, and Flathood.

In comparison to Rs 26.46 crore in the year-ago period, Puravankara reported a 63% increase in the cumulative net gain in June at Rs 43.24 crore.

Over the corresponding period of the previous year, total income in the period of June increased by 64% to Rs 645.55 crore from Rs 394.70 crore.