COMMENT Checking into Folk Co-living’s Battersea site, Florence Dock, for a 24-hour stay, I set out to gauge the investment potential of co-living first-hand.
I was intrigued about how my investment perspective could evolve by experiencing a co-living building for myself. Co-living promised community-led living and top-notch amenities. Did it deliver?
As an introvert, I worried that there would not be enough quiet areas to spend time alone outside my studio.
However, cleverly thought-out areas like quiet reading rooms and smaller lounges such as The Snug were perfect for allowing me to spread out across the building without feeling obliged to socialise.
This reinforced my belief that – contrary to popular misconception – co-living is not just for extroverts, and offers a rental experience to a range of demographics.
Space for everything
I spent time in almost all of the amenity spaces, and the most used areas were the co-working space, communal kitchen and gym.
This correlates with the data found in our co-living report, which shows that the gym was the most used area in the mornings, co-working space was most utilised from 8am-10pm and then residents retreat to their personal studio spaces to unwind and sleep.
From discussions with investors and developers we have also seen greater demand for co-working space in co-living buildings, which has resulted in areas being refurbished into co-working space in first-generation stock, and larger working spaces being considered in planning for future schemes.
My everyday home is a two-bed apartment, so I thought the studios at Florence Dock would feel very compact. However, I did not find myself missing the space in my own apartment.
At a recent co-living conference in Amsterdam an architect commented: “If you can make a 20 sq m studio with five separate functions then it is the same as having a 100 sq m apartment.”
This rang true at Folk, as I was able to transition between working, cooking, sleeping and relaxing in the one space.
Community cohesion
I could also tell that the residents were invested in the community: I was approached by friendly residents throughout the day, who asked me if I had just moved in and how long I was staying for.
When I used the shared kitchen, the other residents helped me use the appliances, which acted as a conversation starter and led me to be introduced to more people.
Seeing how such a rich community had developed over the three months since the building had launched was promising.
There is no doubt that there is a correlation between the friendships people make and how long they stay. Many people I spoke to had already extended their stay as they were so engaged with the community.
This echoes the data from our report, which shows that 72% of people intend to stay in co-living for a year or longer. From an investment perspective this is encouraging.
Ride the wave
Another key draw to co-living is the convenience it offers residents. The ease and predictability of all-inclusive bills is a key consideration.
Residents like how they are able to financially plan and budget with the all-inclusive rents. This was reflected in the findings of our report, with almost half of respondents stating that their primary reason for choosing co-living was the all-inclusive bills.
Higher rents are also justified as events, gym membership, co-working and utilities are all taken care of.
The flexibility in stay duration offered by most co-living providers addresses the evolving demands of a demographic seeking freedom from rigid leases. At Florence Dock residents can stay and experience co-living from one night to several years.
My experience lived up to the promises of community-led living and extensive amenities, and I can see the appeal for renters looking for a more premium, sociable housing solution in London.
My stay confirmed that co-living, far from being a fleeting trend, is a resilient investment opportunity that addresses contemporary housing needs.
As the co-living sector continues to evolve, the potential for long-term returns remains robust, making it a compelling proposition for investors looking to ride the wave of housing market changes.
Jenna Harris is head of co-living at Harris Associates
