Pune Youth Increasingly Opting For Co-Living Spaces Over Traditional Rentals Due To Affordability And Convenience
Housing Sales Fall 19% Across Nine Cities; New Supply Drops 30% in Q2 2025
Pune: Young people in Pune are showing a growing preference for co-living spaces over renting independent homes. The shift is mainly due to lower rents and the availability of fully-equipped accommodations, attracting both working professionals and students. In Pune, there has been a notable increase in co-living facilities, especially in areas surrounding IT hubs.
The popularity of co-living gained momentum after the COVID crisis, largely driven by increased migration to cities for education and employment. The demand is particularly high in cities like Bengaluru, Mumbai, Delhi, Chennai, Hyderabad, and Pune. Many major companies have entered the co-living sector, while several individual property owners are also running such facilities independently.
Over the past few years, co-living arrangements have been expanding across metro cities and smaller towns throughout India. The country currently has an estimated migrant population of around 50 million in the 20 to 34 age group, which is the primary driver behind the rising demand. Presently, there are 3 lakh co-living beds across India, and this number is expected to reach 10 lakh by 2030.
Currently, the demand for co-living beds stands at 66 lakh, which is projected to increase to 91 lakh by 2030. According to a recent report by Colliers India, the current market turnover of $40 billion is expected to grow to $206 billion by 2030.
25% to 30% Cheaper Than Renting a Home
In Pune, co-living facilities are concentrated in areas like Hinjewadi, Viman Nagar, Baner, Kharadi, Balewadi, Magarpatta, Kalyani Nagar, and Kothrud. These locations, being near IT companies, have the highest number of co-living setups. Monthly rents are determined based on the quality of the facility and the services provided, ranging from ₹5,000 to ₹60,000.
Currently, the average monthly rent for a 1BHK flat in Pune ranges between ₹12,700 and ₹22,500, while the average rent for a co-living space is ₹9,500 to ₹15,700. This makes co-living approximately 25% to 30% cheaper than renting an independent flat.
The co-living sector is poised for substantial growth in the near future. Compared to renting a private home, co-living is easier, more convenient, and cost-effective. With increasing migration for jobs and education, more people are preferring the co-living option.
— Badal Yagnik, Chief Executive Officer, Colliers India
Benefits of Co-Living:
- Lower rent compared to independent housing
- Flexibility in daily and monthly usage
- Maintenance and cleanliness responsibilities lie with the operator
- Additional services like laundry, meals, and more
- Options for shared rooms as well as private rooms
