There is a significant supply/demand imbalance for co-living space in London, according to new research from Gerald Eve, a Newmark company.
The company’s Co-Living Operator Survey found that while London’s potential market for co-living accommodation is 600,000 beds, supply is forecast to hit just 11,500 beds by 2027.
Gerald Eve’s survey also found that within zones two and three the investment yield for existing co-living stock ranges from 4% to 4.75%, but recent prime funding deals in London are showing yields of between 4.35% and 4.5%.
Jo Winchester, co-living consultant at Gerald Eve, said: “Our research underscores co-living’s potential as a resilient and adaptable housing model in the face of rapidly changing urban lifestyles and housing needs. The sector is clearly experiencing dynamic growth, offering new living solutions that cater to a diverse urban population. Meanwhile, the GLA’s recently published space standards provide helpful guidance for developers and greater flexibility with regards to the provision of communal space.
“This report clearly marks out co-living as part of the housing solution for today’s rapidly changing cityscape. Of particular note is the role of co-living in catering to the needs of single renters – a segment of the market historically under served by traditional rental markets.”
