Take note: within mere weeks of one another, two separate investments have been made into the CoLiving industry at $1 Billion EACH. The first came from U.S. company PMG, and the second from Medici which is working on expanding its CoLiving brand Quarters in Berlin. For those who follow investment trends and their obvious implications, this is one to take seriously.
Coworking and the rise of WeWork have been an unavoidable explosion in disrupting the office market. However, the lesser-known but extremely similar industry of CoLiving is quickly following the same trend. Both are based on the core foundations of a digital world, sharing economy, lifestyle flexibility, and the importance of valuable human interactions. The only difference? One of them focuses on office space, and the other on living space. The best part? CoLiving isn’t just more fun and more productive, is also significantly more cost-effective. It’s no wonder urban residents are scrambling to get a space on their lengthy waiting lists.
CEO of Corestate Michael Bütter says: “Urbanisation, young people’s desire for community as well as the opportunity to live and work in different cities, are boosting demand for communal residential spaces. Investment in the co-living segment is characterised by the low risk profile of residential property paired, however, with higher yield expectations.”
In other words, investors see CoLiving as low risk, high reward.
What Does This Mean for CoLiving?
It’s important to recognize that these two massive investments are not focused in the same area, or even the same country. The fact that CoLiving is taking firm hold across the world indicates that this industry appeals to diverse cultures and lifestyles to create a market that basically everybodywants in on. This means big changes in the social and real estate realm, and even bigger revenue opportunities. Nobody can argue that this is just a fad anymore: when huge investment firms pull $1B out of their pockets, it’s because they see something that’s worth the cost many times over.
CoLiving is NOT Just for Millennials!
While CoLiving certainly attracts a large portion of the professional millennial population, it’s in no way limited to a certain age group or lifestyle. That’s because it’s based off of guiding values and not a set structure. CoLiving can range from nightly Pod models (like PodShare) to complete individual units with personal rooms and kitchens. Whatever the format or demographic may be, all a CoLiving concept needs to succeed is others who share that mindset. In fact, take SpareRoom which was launched by Rupert Hunt, around ago 40, who was seeking meaningful interactions after his divorce. CoLiving brought him and his residents the ideal balance of supportive relationships to fend off loneliness, something that people of all ages are prone to.
Hunt says that “the biggest growth area for co-living space is people in their 40s.”
Who are we to argue that? With an annual turnover of over £8.5m, Hunt is clearly onto something. And these new investors are right there with him.
With this immense capital being funneled in, we can expect to see some major changes in the way people live globally. As the WeWork of homes, CoLiving is poised to take the world by storm — and now it’s got the funding to do so.
*Looking for a CoLiving Management Software solution? Kndrd.io is now LIVE!
Kndrd: Technology to facilitate the Living in CoLiving 💜
**Check my published book on this subject: The Coliving Code, now available on Amazon.com. It offers tons more details on how you can find your tribe, share resources, and design your life. This is a must-have for any of you curious about the coliving industry.