The co-living market in Hyderabad is witnessing a notable rise in demand, reflecting national trends where organized co-living supply is projected to reach around one million beds by 2030—up from the current 0.3 million. With Hyderabad offering a 25–35 per cent rental advantage over traditional 1 BHK housing, the city is emerging as a significant hub for co-living expansion, especially among students and professionals.

In Hyderabad, single occupancy co-living rentals currently range from Rs 10,500 to Rs 17,300 per month, compared to Rs 14,000 to Rs 26,500 for standard 1 BHK units. The city joins Bengaluru, Mumbai, and Delhi NCR as a key market with strong rental arbitrage and increasing adoption of shared living formats.

At the national level, the organized co-living sector, currently catering to just 5 per centof potential demand, is expected to triple its stock by 2030. By then, penetration is forecast to cross 10 per cent, as the total co-living bed requirement grows to 9.1 million from 6.6 million in 2025, driven by urban migration of youth aged 20–34 seeking rental convenience and affordability.

According to Colliers India, the estimated market size of the co-living sector is set to grow fivefold, from Rs 40 billion in 2025 to nearly Rs 200 billion by 2030. Capital inflows into the sector already exceed USD 1 billion since 2015, with operators favoring asset-light lease models to scale operations quickly.

“India’s co-living sector is entering a new phase of growth, underpinned by strong demographic fundamentals and a growing preference for flexible, community-centric living. With rapid urbanization and a high proportion of migrant population, including students & young working professionals, the demand for organized rental housing, especially co-living, is likely to witness strong growth. Significant upside potential is anticipated to provide thrust to investor participation and operator expansion in the co-living sector. Resultantly, we expect market penetration to double from ~5 per cent currently to over 10 per cent by 2030. In fact, the coming years will be crucial in shaping a more structured, scalable, and investment-ready co-living ecosystem in India.” said Badal Yagnik, Chief Executive Officer, Colliers India.

Currently, most co-living models in India are based on leasing agreements with property owners lasting 3–9 years. In this setup, operators handle day-to-day operations and sublet units to tenants. Other models include management/revenue sharing and franchising, allowing flexible expansion strategies, especially into Tier-II cities.

In cities like Mumbai, co-living beds are priced between Rs 15,200 and Rs 27,500 per month, while 1 BHK rentals range from Rs 19,000 to Rs 42,000. Similarly, Delhi NCR and Bengaluru show rental gaps of 25–35 per cent, making co-living a cost-effective alternative across metros.

The segment’s growth is also being fueled by Purpose-Built Student Accommodation (PBSA), a sub-category witnessing sharp demand due to a shortage of campus housing. While the student population continues to grow, available university hostel beds cater to only around 4 million of the estimated 12 million demand in 2025. This leaves a gap of approximately 8 million beds, presenting a lucrative opportunity for private PBSA operators.

India’s gross enrollment ratio in higher education stands at 28.4 per cent, with 43.3 million students currently enrolled. A large share of these are outstation students seeking quality housing near academic institutions, especially in urban centers such as Hyderabad, Chennai, Jaipur, and Dehradun.

“The co-living model offers efficient housing solutions at scale, with integrated services like utilities, housekeeping, and internet bundled into monthly rent. These features align with the expectations of mobile urban youth,” noted Vimal Nadar, National Director, Research at Colliers India. “As institutional investors grow more familiar with the returns profile—typically around 10 per cent versus 2–5 per cent in traditional rentals—we expect continued capital deployment and deeper market penetration.”

By 2030, analysts anticipate that organized co-living operators will not only grow in scale but also expand their geographical footprint. Emerging Tier-II cities like Indore, Visakhapatnam, and Coimbatore are already drawing investor attention.