Coliving Models: Find the Ideal Format for Your Project
Coliving has revolutionized the real estate market and the way we live and work. With the growing demand for flexible, community-oriented spaces adapted to new lifestyles, it is essential to understand the different coliving models and how they can fit various user and investor profiles. Each of these models, depending on its nature and location, must comply with regulations primarily affecting licensing and length of stay. Additionally, they serve specific needs that transform them into viable business opportunities. Location, for instance, is key when defining a commercial strategy. Are you looking for the ideal model for your property, or do you want to launch a coliving project? Here, we present the main coliving types and their characteristics.
Tipology of Coliving Models
1. Vertical or Centralized Model
Vertical or centralized coliving consists of entire buildings designed or adapted exclusively for this purpose. These spaces can be found in urban, rural, or coastal settings, and their main advantage is the ability to offer a well-structured community experience.
Types of centralized coliving by location:
- Urban: Located in large cities, it facilitates soft-landing for newcomers by providing a comfortable space and a supportive community for rapid integration. Example: The Collective (London, New York), Outsite (various international locations), Viu (Barcelona).
- Rural or Coastal: Found in natural settings, these spaces meet the need for work-life balance, with environments designed for focus and well-being. Example: Nine Coliving (Tenerife, Spain), Sende (Galicia, Spain).
Types of centralized coliving by land use:
- Residential: Designed for stays ranging from a minimum of one month to medium- and long-term durations, with a focus on community and shared experiences. Example: Viu Coliving (Barcelona, Spain), Circles (Barcelona, Spain).
- Tertiary (hotels or hostels): Focused on shorter stays, starting from one night. However, to ensure a good community experience, we recommend a minimum stay of 14 nights. These are ideal for digital nomads and traveling professionals. Example: Zoku (Amsterdam, Copenhagen), Kalima Beach Life (Caldes d’Estrac-Barcelona, Spain), The Social Hub (various international locations).
User Profile
- Digital nomads and remote workers looking for an inspiring environment with an active community.
- Young professionals who want to live in fully serviced spaces.
- Business travelers.
- Entrepreneurs and freelancers who value social interaction and collaboration.
2. Decentralized Model
This coliving format consists of shared apartments within the same city, without a single space that unifies the community. These spaces are usually managed jointly, but the level of interaction among residents is much lower compared to the vertical model. This model meets the need for soft-landing and affordability in cities with high rental prices.
Characteristics:
- Located in residential areas, allowing for long-term stays.
- Has a lower impact on the local community.
- Enables greater geographical distribution.
- Increasingly, coworking spaces in cities are adopting this coliving model as an additional service for their members, fostering a stronger sense of community.
Example: Habyt (Europe and Asia), Enso (Barcelona, Spain), Aticco Coworking (Barcelona, Spain).
User Profile:
- Foreigners settling in the city who need an affordable housing option for integration.
- Young professionals sharing apartments because they cannot afford their own.
3. Hybrid Models
These spaces combine coliving with other activities or services, making them more versatile and attractive to various user profiles. They also offer higher profitability by mixing short-term and long-term stays and diversifying revenue streams.
Combinations:
- Coliving + Coworking: Ideal for entrepreneurs and companies seeking synergies in the same place. Example: Kalima Beach Life (Caldes d’Estrac-Barcelona, Spain).
- Hotel Coliving: Designed for flexible stays with hotel-like services. Example: Zoku (Amsterdam, Copenhagen).
- Coliving for Students and Professionals: Residences designed with a strong community focus. Example: The Social Hub (Europe), Uniplaces (various international locations).
These models can be found in urban or rural settings, depending on the target audience and the type of experience being offered.
Analysis of Kalima Beach Life and The Social Hub as Combined Coliving Models
Some operators combine multiple models to maximize their reach and optimize their value proposition. Two notable examples are Kalima Beach Life and The Social Hub, both of which integrate different formats into their strategy.
Kalima Beach Life
- Vertical Model: A single building with centralized management.
- Coastal: Located in a beachfront setting, promoting work-life balance.
- Tertiary: Provides accommodation with additional services similar to a hotel. The minimum stay could start at 1 night, but 14 nights are recommended to ensure a strong community experience.
- Hybrid (Coliving + Coworking): Includes a shared workspace, attracting both international and local professionals.
- Community Level: Very high, with a strong focus on delivering an exceptional work and lifestyle experience. Regular community activities are organized.
The Social Hub
- Vertical Model: Located in cities with buildings primarily designed for students.
- Urban: Mainly targeted at students, but also welcomes young professionals, companies, and travelers looking for connections.
- Tertiary: A hybrid operation, primarily functioning as a student residence with a smaller proportion of short- and long-term stays for professionals.
- Hybrid (Hotel + Coliving + Coworking + Hospitality): Offers flexible accommodation, allowing stays from one night to several months. Additionally, it features coworking spaces, networking events, a restaurant, and a bar, making it an attractive option for professionals, entrepreneurs, and both international and local students.
- Community Level: Very high, with a focus on providing an outstanding work and lifestyle experience. A regular community activity program is in place.
Both cases demonstrate how combining different models allows for diverse solutions tailored to various user segments.
Conclusion
Coliving is not a one-size-fits-all concept; rather, it consists of a range of models that cater to different needs and lifestyles. Whether you are an investor, property owner, or entrepreneur, it is crucial to identify which format aligns best with your vision and target market. The key to success in coliving lies in choosing the right model, location, and type of community you wish to create. If you are considering developing a coliving project, selecting the appropriate model will significantly impact the resident experience, commercial strategy, and overall profitability.
At HWL, we can help you maximize the potential of your property, contact us here for advisory services.
