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Embassy group forays into co-living segment with Olive brand

Embassy Group plans to focus on commercial, industrial, co-working and co-living segments to expand its footprint in the country. It currently has 10 million sq ft of commercial projects under development, with a residential inventory of Rs 4,800 crore.

, ET Bureau|
Last Updated: Jan 22, 2020, 11.35 AM IST
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The co-living market in the country is expected to grow at a CAGR of 17% in the next five years to touch nearly Rs 1 trillion, said a JLL-FICCI report.
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BENGALURU: Real estate developer Embassy Group is foraying into coliving, or shared residence, segment with an eye on the large number of young working population in top cities.

The Bengaluru-based firm plans to roll out 10,000 beds under its coliving residential offering Olive with an investment of ?1,000 crore by 2021, its CEO Aditya Virwani said. “We may look to scale to 100,000 beds over the next five years depending on the business growth,” he said.

Coliving is a modern concept popular in metropolitan cities where like-minded people live in the same house with common kitchen, lounge, work area, etc. with private bedrooms and sometimes private bathrooms.

In the first phase Olive will be rolled out in Bengaluru, Chennai and Pune, with 75% of the proposed inventory coming up in Bengaluru. “We will also enter into joint venture and joint development agreement with landlords to expand the brand,” Virwani said.

India’s coliving market is at a nascent stage and has only a few organised players. However, the trend is catching up in the major cities as the housing market begins to lean away from the proprietorship and towards a service model. The concept is particularly popular among youngsters. With millennials forming the largest population at 34%, India is set to become the youngest country with median age of 29.

The coliving market in the country is expected to grow at a compound annual rate of 17% in the next five years to touch nearly ?1 trillion, according to a JLLFicci report.

Separately, Embassy Group is also in the process of raising ?4,000 crore through divestment of assets to retire debt and invest in WeWork India expansion. The realtor currently has around ?7,000 crore debt.

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