European coliving at ‘tipping point’, tackling supply and affordability challenges

London, 29 October 2019 – The convergence of rising consumer demand for alternative living space and increasing institutional investment in non-traditional real estate has put Europe’s coliving sector at a tipping point, according to new research from JLL. There are now more than 23,150 coliving beds either built or in development across Europe, but policy maker support is needed to help the sector reach its full potential.

Coliving assets - where tenants lease optimised personal areas and share communal spaces and amenities – provide a flexible and modern solution for the changing lifestyles of today’s urban populations. JLL’s European Coliving Index reveals that surging institutional investment is allowing the sector to scale at pace on the continent. 53% of current operating assets are over 100 beds, but this will increase to 79% once those in the planning stage take form. The average size development will rise to over 250 beds.

Richard Lustigman, Director – Living Capital Markets, Coliving, JLL said:

“Coliving assets are disruptive and innovative solutions for the changing housing needs of the modern urbanite, particularly in areas where supply and financial pressures are increasing the demand for more flexible living space. Coliving 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.”

Europe’s coliving beds are heavily concentrated in the continent’s capitals, with London, Amsterdam, Paris, Berlin, Dublin and Vienna leading the market. London and Amsterdam account for nearly 40% of coliving stock. However, with a quarter of the market spread over 24 cities across Europe, the potential for growth is widespread – both for capitals consolidating their positions and for secondary cities to enter the mix.

The UK is a particularly strong growth market. London holds over 20% of the current European market, and Manchester, Glasgow and Birmingham also rank in the top 20 coliving cities in Europe. Given 85% of the UK’s coliving assets are still in the pipeline, the growth of the sector is expected to continue.

James Kingdom, Associate – Living Research and Strategy, JLL added:

“Coliving accommodation will play a leading role in future city structures and increasing institutional investment has established the sector as a competitive part of the broader property market. Going forward in Europe, growth will be particularly spurred by younger city demographics taking their first step on the property ladder – such as the fast-growing post-graduate and post-PBSA populations who are calling for more convenience and choice in housing.” 

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.