Gen Z and millennials are increasingly opting for co-living arrangements; companies are strategizing to expand their offerings.

Bengaluru is experiencing a significant trend among Gen Z and millennials, especially individuals between the ages of 21 and 27, opting for co-living spaces. This movement is fueled by the need for budget-friendly, adaptable accommodations that provide increased safety and high-quality features, shifting focus from conventional paying guest (PG) alternatives. The increase has been boosted by the shutdown of 200 to 300 PGs in the city as a result of stricter Bruhat Bengaluru Mahanagara Palike (BBMP) rules, combined with recent job cuts in the IT industry, leading entry-level workers to prefer co-living environments. Co-living spaces offer an organized, comprehensive living arrangement with fully furnished, move-in-ready units at competitive prices, frequently counterbalancing the assumed lower expenses of conventional PGs. Providers such as Nestaway and HelloWorld, which now provide 1,000 beds, intend to increase their capacity to 2,000 beds in the next two years to satisfy this growing demand. Co-living spaces are characterized by a wide range of amenities, such as Wi-Fi, cleaning services, designated co-working spaces, kitchen access, laundry facilities, leisure areas, and round-the-clock security. Rentals usually include access to common facilities, utilities, and essential furniture, resulting in the total expense of housing often being less than similar apartment leases. Adjustable stay lengths and low initial expenses boost their attractiveness. The majority of co-living companies achieve average occupancy rates between 85-90%. Monthly rental prices for these areas usually vary from Rs. 10,000 rupees. 35,000 (US$ 115.89- 405.61), based on the type of lodging. Certain micro-markets in Bengaluru, like Thanisandra and Mahadevapura, are gaining considerable momentum