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A study of coliving spaces in a few major countries

Written by: Eric Asare 20/06/2024
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A study of coliving spaces in a few major countries

Coliving spaces are gaining popularity in various cities worldwide. Japan, China, the United States, and the UK are among the leading countries where co-living is gaining popularity. The growth of coliving is driven by factors such as urbanization, changing demographics, and the desire for affordable, convenient, and socially connected living spaces.

Let's look at the coliving developments in these countries and how they have progressed over the years.

Japan

The rising popularity of coliving in Japan is partly attributed to demographic shifts such as an aging population and a reduction in household sizes. In the country, the average length of a housing unit stands at 9.45 square meters. Coliving spaces in Japan are characterized by their smaller footprint, emphasizing individual apartments rather than communal areas.

Hines, a real estate firm, has recently made strategic acquisitions in Japan, securing multifamily properties in cities like Nagoya and Fukuoka. These acquisitions comprise over 400 units and have the potential to serve as affordable coliving options. This expansion reflects the growing interest in providing alternative housing solutions to meet the evolving needs of Japan's urban population.

China

In Beijing, shared living spaces have become commonplace in districts surrounding leading universities. They cater to the needs of students and young professionals. You+ is a prominent housing operator in China, providing accommodation to a community of over 10,000 individuals spread across 25 branches. Another major player in the Chinese coliving market is Mofang, which boasts approximately 130 locations throughout the country, encompassing over 15,000 units. The average living space per unit is anticipated to be smaller than traditional apartments, reflecting the cost-effective nature of coliving arrangements. Mofang's extensive presence underscores its status as the largest operator in the region. Mofang has a widespread reach, suggesting accessibility to diverse segments of the population seeking alternative housing solutions.

United States

Common is the largest operator of institutional-quality coliving properties in the United States and receives an impressive 1,000 applications per week across its 22 locations. This underscores the growing demand for coliving arrangements in the country. Warburg Pincus, a prominent private equity firm, has made substantial investments exceeding $450 million in coliving operators across the Asia Pacific region, including well-known players such as Mofang and Weave Co-Living. These investments highlight the firm's recognition of the potential and significance of the co-living market in the region.

London, UK

London holds a significant 20 percent share of the European market for coliving, indicating its growing prominence in this housing sector. The United Kingdom has witnessed a remarkable surge in coliving pipeline activity, especially since the emergence of the Covid-19 pandemic. In London, coliving spaces are increasingly sought after. Among the leading developments in the city is The Collective Old Oak Common, the world's largest coliving development. This expansive project offers over 550 bedrooms and an array of amenities designed to cater to residents' needs. At all of London's top-rated and reputed coliving spaces, residents can enjoy various facilities designed to cater to the demands of traveling entrepreneurs and individuals seeking a vibrant and convenient living experience. You can easily find affordable yet comfortable living options in the heart of London.

The Future of Coliving Spaces Across the Globe

As coliving spaces continue to grow in popularity, their presence in major cities around the world is reshaping how people live and interact with their surroundings. Japan, China, the United States, and the UK have become key players in this movement, offering affordable, socially connected living options in urban environments. As demand increases, these countries are adapting their housing markets to cater to a new generation of residents looking for more flexible, community-oriented living arrangements. The future of coliving looks bright, offering solutions that align with modern lifestyles and evolving demographics.



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