Europe’s co-living sector is expected to triple in the next two years to more than 20,000 bedrooms.
It is set to grow from around 6,480 operational beds to 20,400 by the end of 2021.
JLL’s European Co-living Index identified Amsterdam, London and Copenhagen as key markets for growth, driven by strong fundamentals including young populations and a high proportion of single-person households.
Rising consumer demand and increasing institutional investment in non-traditional real estate means co-living has reached “a tipping point”, the report said.
JLL defined co-living as purpose-built, professionally managed, multi-tenanted residential accommodation with typically smaller private areas supplemented with a larger provision of communal space.
The report said there was a further 16,670 beds in the pipeline, taking the total sector to 23,150 across 100 assets.
London boasts the largest co-living market with around 22% of the total number of beds, closely followed by Amsterdam at 17%, with Paris and Manchester both making up 8% of beds.
The report said nearly three-quarters of the stock is focused in just eight cities, with the remaining quarter spread over 24 cities.
Currently, the sector is dominated by the likes of The Collective, with Medici Living and The Fizz in mainland Europe. However, JLL anticipates significant growth of the pipeline with new entrants as well as residential, student and hospitality developers broadening their market. Upcoming schemes include major plans from Get Living, Galliard and HUB.
Richard Lustigman, JLL’s director for living capital markets, co-living, said: “Co-living products offer choice in a market short of options, and the sector’s growth potential is huge. It is essential that legislation is put in place to protect occupiers, support its value and enable its development so that pipelines can extend beyond their current numbers.”
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