Co-living has gained traction recently as an emerging subset of BTR and Living. This use type has incredible potential to deliver modern homes, at an all-inclusive and flexible price point. It has obvious benefits for occupants, delivering more choice and encouraging social cohesion, but is also a very compelling investment opportunity. 

Although maligned for creating smaller living spaces, the fundamental point is that Co-living schemes are designed to encourage people out of their rooms and into social and communal spaces.

Co-living is what it says on the tin:

✅ Sharing space

✅ Building community cohesion (inside and outside the building)

✅ Pooling resources (for efficiency, sustainability and cost effectiveness)

✅ Enjoying new and different experiences

🌍 The best of both worlds:  A great Co-Living building is designed to draw the occupant into communal spaces, share resources and interact. But with the ability to retreat to your own private room and space when it suits.

Co-living should be championed as an important subset of BTR that delivers more homes, creates a diversity of choice for tenants, at an all-inclusive price point.

More supply = good outcomes 👍

Investment Case

📈 Supply happens with viability and capital allocation. Investors should be very encouraged into this sector due to the secular tailwinds in Living.

We are seeing the yield spread between BTR and Co-Living tightening markedly. “Low 4%” yielding Co-Living deals are being traded in strong locations.

⛰️ At Donard, we are seeing Yield-on-Cost >7.5% for Co-Living projects, which provides a highly compelling investment case.

Please reach out to discuss opportunities.