HYDERABAD: As housing rentals rise consistently, the western corridor has become a popular area for co-living spaces, experiencing a tenfold growth in the past four years.
According to the IT Corridor Hostels Association, Hyderabad saw its co-living facilities surge from about 20 during the pandemic to over 250 today. This increase is largely due to shifting accommodation preferences among young professionals, with over 90% located in key IT hubs like Gachibowli, Hitec City, Kondapur, Kukatpally, and Miyapur.
Transitioning from PGs to co-living spaces
Co-living spaces now constitute nearly 5% of around 4,500 hostels serving both men and women in the Cyberabad area. Operators attribute the rise to the conversion of conventional paying guest accommodations into modern co-living establishments.
“Many hostels with low occupancy have rebranded as co-living spaces to attract young adults. Operators are moving away from terms like hostel or PG, opting instead for the co-living label. This trend has seen a commercial uptick, driven by demand from employees looking for a community-focused lifestyle with modern amenities,” explains V Mahidhar, owner of a women’s PG in Gachibowli.
Co-livers share their experiences
Residents report that co-living spaces offer a mix of privacy, comfort, and social engagement often lacking in traditional rentals. “I moved from Delhi to Hyderabad in 2019 and first rented an apartment. Three years later, I discovered co-living and was pleasantly surprised by how much I enjoyed it. I have a private room with all necessary amenities; it feels like both a hotel and a home. There are no restrictions, and my family can visit me,” shares Ashish Lal, a resident at Buzz Quarter, Khajaguda.
Many residents acknowledge the social benefits of co-living. Shared cafeterias, common areas, and community events create opportunities for diverse interactions. “In co-living spaces, you meet many people and forge meaningful connections, often more than in a traditional apartment,” adds V Sanjay Chowdhary, another resident in Gachibowli.
Growth outside key IT hubs
The trend is expanding beyond established IT zones. “New co-living facilities are emerging in residential areas like Narsingi and Kokapet. Some couples are opting for co-living rather than traditional rentals, benefiting from security, meal services, and lifestyle amenities at competitive rates. A couple can typically stay for about Rs 30,000 per month,” reports Amarnath Reddy, head of the IT corridor hostels association.
These co-living spaces offer a variety of premium amenities, such as gyms, indoor games, housekeeping, and recreational areas, but at a cost, with monthly rents generally ranging from Rs 15,000 to Rs 20,000 per person, depending on the location and amenities.
Unlike traditional rentals, co-living spaces eliminate security deposits and brokerage fees, providing fully furnished rooms and meals under one monthly payment, appealing especially to newcomers.
High demand and occupancy rates
Operators note that well-managed co-living facilities in prime IT areas maintain high occupancy throughout the year. Most residents fall within the 22 to 35 age range and work in IT, financial services, or startups. This co-living segment is expected to consolidate further as more operators expand their portfolios and introduce premium offerings aimed at working professionals.
Technology streamlines accommodation searches
To meet the rising demand for co-living spaces, various mobile apps and online platforms have appeared, enabling users to search, compare, and book accommodations based on their preferences. These platforms allow users to customize their search criteria, including location, budget, room-sharing options, and amenities, helping them find a suitable co-living arrangement.
