India co-living market faces massive supply gap, NOESIS report

A report by NOESIS, an Indian hotel and branded residences advisory firm, reveals a significant supply shortage in India’s co-living sector. As of 2025, national demand is estimated at approximately 6.6 million beds, while organized supply stands at fewer than 300,000 beds. This represents an organized market penetration of less than 5 percent.

The market is projected to grow from USD 0.53 billion in 2025 to USD 1.96 billion by 2031, representing a compound annual growth rate (CAGR) of 24.34 percent. Even with organized inventory expected to triple to nearly one million beds by 2030, penetration is forecasted to remain only slightly above 10 percent against a total demand pool of 9.1 million beds.

Key drivers for this demand include record levels of office leasing and the expansion of Global Capability Centres (GCCs). In 2025, GCCs accounted for 37.7 percent of all leasing, with Bengaluru hosting between 34 and 39 percent of national GCC activity. NOESIS CEO Nandivardhan Jain noted that the sector should be viewed as an operating business rather than a traditional real estate opportunity.