Three challenges driving the change rooting for coliving
New business model, a shift in ownership, and operational excellence through technology. These are the three main drivers behind a transformation of the coliving concept to be the mainstream standard in the residential market.
Take a look back at the highlights from the CoLiving Business Mixer — conference organized by Heerow in June 2021 at Spaces Nile House, Prague.
The wishes and dreams of young people and young families have rapidly evolved due to changing lifestyles, the ability to move and work globally, and economic constraints. The dream used to be to own a house one day, later their ambition was to buy an apartment and now rental brings a lot of flexibility, affordability, and opportunity for socializing.
The economic situation, as well as the shortage of housing, leads to rental models enabling freedom, flexibility, and independence. With the situation on the market inclining from ownership to rental, there is a new space model shaping as emerging for coliving.
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What is coliving? “It’s an innovative way of living that combines thoughtfully designed private space with one-of-a-kind amenities and ground-breaking experiences.” — based on the definition provided by The Collective.
Coliving development from the wider perspective means that “your” space area may be reduced, but on the other hand you will be able to use a much bigger common space area and shared amenities in the building. Some developers think of a coliving unit as a tiny or minimal apartment with unique features.
The range of offered amenities and outfit of the external (non-residential) space define the quality, mission and brand of every coliving project. The more shared services, the more important the role of property or asset manager will be. Operational excellence will be paramount as many new tech platforms will support the sense of community and user-centered services.
Shift in ownership
Currently, the building owner in the residential apartment block is the owner of each flat. With more investors, including institutional ones, buying entire blocks, it will boost the demand further. The ownership in the form of shares in a fund and many other models are yet to come.
Also, the business model is not established yet. But the precedent projects (to mention two examples: the Common in the US market, the Collective in London and NYC as well) are driving the imposed lifestyle, space plan, and community and amenities offer.