Momentum is building in the co-living sector, Savills reports

Over half of European investors plan to invest in the co-living sector in the next three years – an increase of 13% and the highest growth rate in all ‘Living’ sectors – according to a new publication from Savills, that also provides an in-depth exploration into the current state of the co-living sector and predicts the future performance for the residential offering that is still developing in the UK property market.

A new publication from Savills has explored the current state of the co-living sector in the UK and highlighted that over half of European investors are planning on investing in co-living over the next three years, over €2.6bn of capital is expected to be invested into co-living in the next three years, and the number of new beds completed and opened to residents has more than doubled in just one year – with another 25,000 beds in the pipeline.

“Activity in the co-living sector has more than doubled since the pandemic.”
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Despite being a relatively new concept for residential living in the UK and with co-living still struggling to be recognised by planning officials and investors alike, the co-living sector is “rapidly gaining momentum” in the UK property market.

In 2022 there were 2,000 new beds completed and opened to residents in the co-living sector in the UK, which more than doubled the number of co-living beds in the UK from 1,422 to 3,422. This trend is reportedly expected to continue with an additional 4,999 beds currently under construction in the co-living market and the significant surge in co-living pipeline activity that has occurred in the UK property market since the beginning of the Covid-19 pandemic in early 2020.

Between 2015 and 2020 there were applications for 10,520 co-living beds to be built in the UK, however, in just the three years since then, applications for a further 12,150 beds have now been submitted which clearly indicates a growing appetite from investors, developers, and lenders for the co-living sector.

“The pandemic has also increased the desirability of co-living accommodation for residents, due to its emphasis on community and resident interaction.”
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Although there are not many co-living schemes currently in the market, Savills reports evidence of “strong lease-up rates and growing rental values” therefore indicating a significant demand for this type of residential offering from residents. Providing an attractive option for people moving to a new city, co-living creates an ideal environment to establish new friends, colleagues, and a community due to its vibrant social scene and extensive amenities.

“Co-living in its simplest form is purpose-built rented housing, where residents have their own self-contained studio apartment and there is lots of shared amenity space throughout the building, often including co-working spaces, gyms, and cinema room … Target residents are students, recent graduates and young professionals who want to live in vibrant urban centres, with a strong sense of community and access to amenities.”
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At Beech Holdings we have experienced incredible demand for our rental properties with amenity spaces and social events, which is why we have developed a new residential brand, City Co-Living, that is designed to bring together the security and independence of living in an apartment with the added luxury of a wealth of onsite amenities and an extensive social calendar to match.

City Co-Living MediaCity will bring residents the opportunity to live in luxurious self-contained apartments in the heart of Salford Quays with a range of amenities just a few floors below them, including a media room, residents’ lounge, co-workspaces with bookable pods, a state-of-the-art gym, and more – with a rooftop terrace on the top floor.

To learn more about how you can invest in the co-living sector and join the 51% of European investors looking to invest, get in touch with our expert team or contact them directly on +44 (0) 161 791 4600 today.

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