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Co-living industry – a growing sector in rental housing industry

shared rental market is growing at 17 % CAGR, and it is showing an opportunity for co-living sector to grow however
industry players are facing shortage of housing units & difficulty in penetrating into the market
An opportunity of 2-4x yield in co-living rental housing, still developers are preferring to stay away.

Pain points of suppliers –


liability of holding of the property,

insufficient yield from co-living business

it is important to address the above pain points of developers to achieve growth in the market.
co-living industry is implementing various solutions to tackle these pain points.

Solutions:
build, lease and operate;
build & operate
build & management contract

co-living industry needs to focus on these solutions - build, lease and operate ; build & management contract.
Oyo life is also facing shortage of housing units and difficulty in penetration

Problems - trust issues with developer and shortage of


housing units.

company is tacking above problems based on various operating models


operating models – bridging the gaps between builders and co-living provider

Solutions- tying up with different developers based on build, lease


& operate model; & build and management contract model

company should emphasize to explain the benefits of above models


build lease & operate model – a next level growth solution

Explain benefits and implementation


1- reduce cost and inefficiency
2- Oyo gets commission

It needs to focus on implementing this model to solve the issues of developers having liability of holding
property and insufficient yield if company closes the business later .
Build & management contract – aggregator led growth

benefits
1-

2-

3-

even though all operating models are a mutual win but implementation and expansion into the next set of
cities is a key challenge
expansion to different cities will bring 10x growth

Map cities
growth rate

– since we are focusing on multilateral expansion,


implementation would require standardization.
exponential growth can be achieved through standardizing the implementation process

What process needs to be formalized, step by step?

Shabaash ab jake dusre framework rato…lund log

– eventually by following above process ,Oyo life can achieve 10x growth in 1 year .

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