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Moderator of this webinar, Bart Sasim, a creative strategist and experienced real estate entrepreneur, has spent over a decade shaping the shared living sector, leading initiatives that push the boundaries of coliving and student housing. His work with Spatial Experience and Coliving Ventures has positioned him at the forefront of industry evolution, making him well-placed to guide this insightful discussion.

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Real Estate Investment & Development Trends: A Balancing Act

Simon Chinn, Vice President of Research & Advisory Services at the Urban Land Institute, began the conversation by examining the state of global real estate investment trends, drawing from research conducted by ULI. Simon, with his extensive background in urban planning and economic development, brought a nuanced perspective on the forces currently shaping cities, especially in the face of environmental and technological shifts. 

Simon’s presentation focused on the slow-moving real estate market in Europe, with transaction volumes dropping to their lowest level in over a decade by the end of 2023. This decline reflects a wider sense of caution, mainly driven by heightened geopolitical risks and fragile economic growth, which have overtaken inflation concerns as the primary challenges facing the industry. The volatility of these factors is causing uncertainty in investment decisions, with strategic planning becoming more measured.

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Despite the prevailing challenges, Simon expressed cautious optimism for the sector. He noted a shift in business confidence, as professionals in the field grow more hopeful that evolving market conditions will stabilise. Expectations for profitability in 2025 are rising, particularly as industry players believe a recovery could begin once geopolitical tensions and economic instability subside.

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As the industry navigates these hurdles, another significant factor influencing decisions is environmental sustainability. Investors, developers and tenants are increasingly placing pressure on real estate development to meet sustainable, energy-efficient standards. Simon emphasised that the push for decarbonisation and environmental responsibility is reshaping the landscape, with greater scrutiny now being placed on real estate projects' environmental, social, and governance (ESG) performance. As such, the demand for green buildings and sustainable investments is becoming critical in shaping long-term strategies.

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The UK’s Coliving Market: Understanding Demand

Jo Winchester, coliving and PBSA consultant at Newmark, shared insights on the growing coliving sector in the UK. With over 20 years in real estate valuation and consultancy, Jo has influenced industry research and demand studies, earning recognition in Property Week’s PBSA Hall of Fame in 2023.

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She explained how coliving is growing in favour as part of the UK’s housing crisis, particularly for single renters and young professionals seeking affordable, flexible living arrangements. With the average age of coliving tenants around 28, nearly half of whom come from overseas, the sector is increasingly attracting international students and young professionals. This demographic growth further reinforces the demand for flexible leasing agreements and community-oriented living spaces.

Jo also discussed the increasing investor interest in coliving. High-profile transactions, with property funding prices in the range of £300k-£420k/key, showcase its strong returns compared to traditional build-to-rent (BTR) and Purpose-Built Student Accommodation (PBSA) models.

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Despite this growth, Jo noted significant challenges, such as rising inflation, construction costs, and delays in the UK’s under-resourced planning system, which impact development feasibility. Yet, demand for coliving in London is estimated at 600,000, with only 5,000 operational beds and a relatively limited pipeline, underscoring the need for greater investment to bridge the supply gap and address the housing shortage.

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Designing for Community and Flexibility

John Badman, Residential Leader for Gensler’s Europe region, led an insightful discussion on the evolving trends in residential design. With over 20 years of experience shaping more than 20,000 Build-to-Rent homes across the UK and Europe, John’s work focuses on creating spaces where residents not only feel at home but also a strong sense of community. As Chair of the inaugural ARL Design Committee for the UK, he’s been at the forefront of setting standards in residential design.

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John highlighted that modern development now prioritises place-making, focusing on location, community vibe, and fostering belonging over just the size of spaces. Homes are increasingly designed for flexibility, catering to “multi-hyphen” individuals who balance work, leisure, and personal activities. As a result, living areas are evolving to serve various functions — home offices, coworking spaces, or relaxation zones — depending on the time of day.

With the rise of remote and hybrid work, demand for spaces that blend work and home life is growing. Designs now include communal kitchens, wellness zones, and spaces that encourage both interaction and solitude. These innovations are crucial in supporting residents’ well-being while balancing privacy and communal engagement.

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Finally, John stressed that thoughtful unit design is key to enhancing overall satisfaction. When units make the most of available space and provide multifunctional areas, they promote both comfort and a sense of community. This thoughtful approach to design ensures that residents are not only comfortable in their private spaces but also connected with their neighbours, creating stronger, more cohesive communities within coliving environments.

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The Road Ahead for Coliving

Building on John Badman’s insights into design, the panel discussed the challenges of maintaining community engagement as coliving expands to diverse groups. The speakers stressed the importance of inclusive programming, regular community-building activities, and flexible shared spaces that encourage interaction among residents. These elements are essential to creating a strong sense of belonging and helping residents connect, despite differing backgrounds.

Turning to investor interest, the conversation focused on opportunities in secondary and tertiary cities, where affordable housing demand is rising. The panel noted that investors are targeting university towns and cities with economic growth potential. However, challenges like lower rental yields remain, which can be addressed through innovative designs and mixed-use developments.

The discussion also explored coliving’s role in improving housing affordability. By offering shared living spaces, coliving provides a more affordable alternative for students and young professionals, helping to tackle housing shortages. Additionally, sustainability practices in coliving spaces encourage residents to share resources and live more eco-consciously.

Finally, the panel addressed the stigma that still surrounds coliving. While early issues with poorly designed spaces and management practices had caused negative perceptions, the panellists highlighted the importance of effective branding and positive testimonials. By emphasising the community aspect and successful case studies, coliving could overcome its past reputation and become a widely accepted solution in the housing market.

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Looking Ahead: The Next Coliving Insights Talks Session

The next Coliving Insights Talks webinar will take place in February 2025, offering another 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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Reflecting on the success of the first 2 editions, Coliving Conference 2025 is now in full swing. The 2-day conference is set to bring another year of industry-leading discussions, featuring expert insights, emerging trends, and innovative ideas shaping the future of shared living. Secure your spot today and be part of the conversation.