This finding comes from Investec research, in its Future Living 4 Report, which also found 36% of investors are optimistic about co-living opportunities.

Over half (52%) of living sector investors are planning to maintain co-living exposure with only 8% seeking to decrease their holdings.

The co-living sector has continued to scale, with over 9,000 operational units nationwide, while planning submissions rose 87% year-on-year in 2024.

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“The sector benefits from long-term structural drivers including housing undersupply, affordability pressures and sustained demand from renters seeking professionally managed, well-located accommodation with flexibility and a strong amenity offer,” said Jonathan Long, head of corporate real estate lending at Investec (pictured above).

“What is becoming increasingly clear is that the question is no longer whether co-living has a place in the market, but how successfully it can be delivered at scale.

“That places real value on working with capital partners who understand the operational and planning complexities of the Living sector and can provide funding solutions that support delivery through different market conditions.”