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Moderated by Bart Sasim, Co-Founder & Managing Director of Coliving Ventures, the panel featured: Murray Clark, Co-Founder & CEO of Neighbourgood and Benjamin Röber-Rathay, Director of Business Development at International Campus Group. Together, they outlined the core phases of coliving development — from initial investment to day-to-day management — while addressing the challenges and opportunities shaping the sector.

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Phase 1: Securing Investment and Financial Stability

Every successful coliving project begins with a sound financial strategy and that is what the speakers explored, focusing on how different funding models impact scalability and long-term profitability.

Murray Clark shared Neighbourgood’s introduction of a co-ownership model, enabling individuals to invest in coliving properties with as little as $5,000, and opening the market to younger investors and digital nomads. Investors receive share certificates, with projected returns of 8.5% in the first year and 18-19% IRR over five years. This approach lowers the barrier to entry and broadens access to property investment.

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In contrast, International Campus Group has transitioned from relying on private investors and family offices to securing institutional backing from global firms such as Brookfield. This shift has provided greater financial stability, allowing for large-scale expansion and higher-value asset acquisitions, as Benjamin Röber-Rathay explained.

Regardless of the funding model, balancing risk and return remains crucial. Both speakers emphasised the importance of structuring investment strategies that appeal to different investor profiles — ranging from those seeking stable returns to those prepared for higher-risk, higher-reward opportunities. Additionally, understanding local tax structures and regulations was noted as a key factor in maximising profitability when expanding into new markets.

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‍Phase 2: Designing for Community and Flexibility

Coliving is more than just providing a place to live; it relies on creating an environment that fosters interaction while offering flexible living arrangements. The panel discussed two primary approaches to scaling a coliving brand:

Neighbourgood focuses on high-density urban areas, ensuring multiple properties exist within a city to encourage interaction between residents. By operating in lifestyle-driven cities such as Cape Town and San Francisco, it integrates properties into the wider urban fabric, making local engagement a natural part of the resident experience.

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IC Group employs a flagship and satellite model, where a larger, well-established coliving development serves as a central hub, with smaller properties nearby benefiting from shared resources and management. This model enables the brand to expand without compromising operational efficiency or the sense of belonging among residents.

Beyond design, community-building efforts play a crucial role in making coliving spaces truly appealing. Both companies allocate 1-2.5% of the budget to marketing and community building activities, such as events or similar initiatives, ensuring that residents of coliving spaces feel connected. The discussion also explored the importance of hiring the right staff — for example, community managers, who act as the necessary bridge between residents and management, helping to create an engaging environment.

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Phase 3: Managing Operations and Expanding Revenue Streams

Once a coliving development is operational, financial sustainability extends beyond rent collection. This raises the question: what additional revenue streams can enhance both resident experience and overall profitability?

Benjamin noted that one effective approach is offering bundled services such as cleaning, laundry, and meal plans, making life easier for residents while increasing the value of their rental package. Some coliving spaces also introduce membership models, where non-residents pay for access to shared spaces such as co-working areas or events.

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Another revenue strategy involves partnering with local businesses to provide exclusive deals to residents, while also generating advertising income or referral commissions. These approaches not only increase profitability but also strengthen the connection between coliving communities and the surrounding city.

For IC Group, long-term financial success also depends on asset appreciation. By targeting high-demand locations and maintaining high standards, properties continue to gain value over time, strengthening their position in the market and making them more attractive to investors.

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Phase 4: Scaling Without Compromising Quality

Expansion is a natural goal for coliving brands, but ensuring quality and consistency across multiple locations presents challenges. The panel agreed that maintaining a strong brand identity is essential; whether through flagship properties, consistent design principles, or well-trained staff.

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Another critical factor in scaling is adapting to local markets. While the overall concept of coliving remains the same, tailoring services, pricing structures, and engagement strategies to fit the cultural and economic conditions of each location helps ensure continued demand. Understanding local regulations also plays a crucial role in successful expansion, as compliance with zoning laws, safety standards and rental regulations can all significantly impact operational feasibility.

By applying these principles, coliving operators can scale effectively while retaining high occupancy rates and offering a compelling resident experience.

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Conclusion: Laying the Foundations for a Strong Coliving Future

Building a successful coliving project involves multiple phases: from securing investment and structuring development to cultivating a strong community and ensuring operational efficiency. As discussed in the Coliving Insights Talks webinar, strategic investment models, scalable expansion approaches, structured community engagement, diversified revenue streams, and regulatory compliance all contribute to a well-functioning coliving operation. By following these principles, operators can create coliving environments that are financially sustainable and appealing to modern residents.

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What’s Next for Coliving Insights Talks?

The next Coliving Insights Talks webinar will take place in March 2025, offering an unmissable opportunity to gain valuable insights from industry leaders. Stay updated on upcoming sessions and details by visiting the Coliving Insights Talks homepage. While these expert-led discussions are open to all, Coliving Insights members can access them free of charge — as part of their membership perks.

If you’re not yet a member, now is the perfect time to join. Gain exclusive access to future webinars, in-depth industry research, and enhanced brand recognition — all within our integrated business intelligence hub, designed to support your growth and success in the coliving space.

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