Digital Nomads and Coliving market

Growth of the Coliving Market

The coliving market is on a rapid growth trajectory, driven by urbanization, changing demographics, and economic pressures. According to recent studies, the global coliving market was valued at USD 7 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 17% from 2024 to 2029. This surge is fueled by younger generations' preference for affordable, flexible living arrangements that prioritize community and convenience.

Urban centers across the globe face rising housing costs and dwindling living spaces. Coliving addresses these challenges by offering tenants cost-effective solutions through shared resources and optimized space utilization. For landlords and investors, coliving properties present an opportunity to achieve higher rental yields per square foot compared to traditional rental models.

Countries like India, the United States, and the United Kingdom are witnessing a significant rise in coliving projects. In metropolitan cities, where housing affordability is a critical issue, coliving has become a preferred choice for millennials and digital nomads. With increasing demand, the sector is attracting institutional and retail investments, underscoring its long-term potential.

Digital Nomads fuel growth

The advent of remote work and the gig economy has given rise to a new breed of professionals – the digital nomads. These location-independent individuals have embraced a lifestyle that allows them to work from anywhere in the world, untethered from traditional office setups.

According to a report by MBO Partners, the number of digital nomads in the United States alone is projected to reach 1.08 billion by 2035, accounting for a staggering 32.6% of the total U.S. workforce. In Europe, communities like RemoteWorkEurope.eu and job boards like EURemoteJobs.com suggests a growing digital nomad movement across the continent, fueled by the ability to live and work remotely within the open borders of the European Union.

This burgeoning demographic has fueled the demand for flexible and affordable living arrangements that cater to their unique needs. Coliving spaces have emerged as a compelling solution, offering a community-driven experience that combines private living quarters with shared amenities and common areas.

Market Opportunity

50% of real estate investors plan to allocate over 25% of their AUM to the coliving sector by 2025.

The appeal of coliving spaces lies in their ability to foster a sense of community, provide access to a range of amenities, and offer a cost-effective alternative to traditional housing options.

According to a survey by Nestpick, 83% of coliving residents cited affordability as a primary motivator for choosing this living arrangement. Furthermore, the study revealed that 79% of respondents valued the social aspect and opportunities for networking within coliving communities.

With over 40 million digital nomads worldwide as of 2024, this demographic represents a significant market opportunity for coliving providers, particularly in regions like Europe where remote work is gaining traction. As the digital nomad lifestyle continues to gain traction across the globe, and the demand for affordable and community-driven living spaces rises, the coliving sector is poised for significant growth.