Investment in co-location and co-living : an innovation of the future

What is the difference between colocation and coliving ?

• Colocation or shared-accommodation is the act of renting accommodation with other people, regardless of the nature of the relationships. Colocation is also used to benefit from larger accommodations that could not be financed by one person alone. It is also a way to avoid loneliness and to be able to share activities with roommates/flat-mates that share common interests. 

• Coliving, born during the 2000s in the United States, is a mix between shared accommodation and coworking. Coliving therefore means living in the same place, but with a certain independence. Tenants own private spaces such as bedroom, bathroom, WC, and sometimes a kitchen, but also different common spaces to share, such as a gym, a TV room, a living room, a terrace, etc.. and often these shared spaces resemble what we find in classic hotels. Coliving is particularly well suited to self-employed workers, entrepreneurs who often travel, etc.. hence the widespread adoption of this new way of living facilitated by the ability or option to work from home. 

The phenomenon has also become much more pronounced with the rise in real estate prices which has increased rents. Shared accommodation or Colocation has thus emerged as a solution allowing people to occupy larger or better located accommodation, primarily students and young professionals.

What are the different types of coliving spaces ?

The priority target of coliving space managers and colocation platforms such as Cooloc, are Millennials that are weakly attached to home ownership and tend to consider career paths that are less linear. They are more open to flexible solutions in terms of housing. 

The coliving offer can be segmented according to the type of accommodation, the area in which it is located, (house, apartment, residential building) and the duration of the stay. 

• Collective: a private room in a house or apartment that also includes shared spaces (kitchen, bathroom, living room, garden, etc.). It is worth mentioning that the apartment can be located in a residence building designed for coliving with purpose built or designated spaces. This type of accommodation is the one that is closest to traditional shared accommodation.
• Semi-private: a private space, consisting of a bedroom with a kitchenette and/or a bathroom in an apartment or house with shared spaces (living room, dining room, relaxation areas, gym, etc.).
• Private: a fully equipped studio (bedroom, bathroom, kitchen) in a residential building which is organized around large collective spaces (coworking, relaxation, bar, restaurants, etc.). This model shares similarities with that of student residences.

For coliving managers who focus more on short stays, the model is close to that of the hotel industry, with higher management costs due to turnover, but higher prices than long-term offers.

Conversely, long-term offers rely on longer-term relationships, which make it possible to limit the costs of marketing offers.