Just as coworking has turned into a success story for the office market these last 2 years, the professional co-living trend wants to follow in its’ steps and take a chance in the residential market. The large international investment funds, in their search for alternative assets offering higher yields, are exploring the Spanish market to implement this type of housing format since it is already being successful in other countries like the U.S., Germany, the U.K. and in cities like Tokyo.
In involves professionalizing the Spanish standard practice of sharing a flat, adding certain sophisticated features found in student halls of residences. The co-living projects that have been developed up until this moment have designed living arrangements with, on the one hand, rooms and individual bathrooms, and on other hand, wide common areas with movie theatres and game rooms (ping pong, billiards, etc.).They have also used state-of-the art technology to enhance the co-livers’ experience through apps to book common areas, order in etc.
This format will also allow also co-livers to decide if they want to rent or buy their part of the property, depending of the type of project and their time of stay.
According to Toni Lopez, partner and director of the Corporate Area of Forcadell, “millennials have changed the way of consuming, leading a change of social thought about property, its experience and use: it is logical and inevitable that this trend has reached the real estate sector.” This generation values experiences and seeks to optimize resources, paying only for the use and experience of a good, without the cost or management of owning it.
Aligned with this tendency, an infinite number of platforms that offer shared services have entered the Spanish market such as eCooltra, which is a scooter sharing app in a pay-per-minute mode, ByHours, which reserves micro stays in hotels or wesmartPark, which connects privately owned parking spaces with drivers who want to park temporarily.The objective of these 3 startups -and of coworking and co-living- is to respond to the needs of a new demand obtaining the maximum profit of the product. In fact, the expected yields that investors are looking for with co-living projects revolve around the 7,5% rate, a much higher percentage that any residential asset is currently offering in the first lines.