Property consultancy CBRE has released its outlook for the co-living sector. Co-living has piqued the interest of investors looking at opportunistic strategies and portfolio diversification across the Asia Pacific region.
Co-living has been recognised as disrupting traditional residential and hospitality segments, offering an alternative to more personalised, flexible, community-oriented and social programming activities.
CBRE believes that the co-living sector has become more apparent due to numerous factors. The ever-evolving regional demographic shifts, increased urbanisation and global ‘workforce mobility’ greatly influence how people live, work and play.
Together with changing lifestyle and consumer preferences, housing affordability challenges have also altered this paradigm in the co-living sector.
Against the backdrop of favourable demographic trends, sustained rental growth opportunities and operational resilience, CBRE expects that investors will continue to focus on the co-living sector as part of their value-add and opportunistic investment strategies.
With interest rate cuts on the horizon expected to spur investment, investors with ‘dry powder’ will begin to deploy and increase capital raising efforts with acquisition and consolidation opportunities targeted at the co-living sector.
Investors will need to consider a range of business operating models that would be viable for their market entry and expansion strategy, according to CBRE.
