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Summary
The French coliving market, while still in its infancy compared to other countries, has demonstrated clear growth potential, with over 8,300 spaces available by the end of 2021, a significant increase on the 5,000 already available. The market is particularly strong in the Ile-de-France region, contributing around half of the country's coliving space. Despite this growth, the market faces challenges such as low awareness, with 53% of the target population (young adults aged 18-34, single and childless) unaware of the concept in 2020.
The legislative environment also remains uncertain, hampering market expansion. In terms of demand, there has been a strong surge in housing, particularly in French metropolises, with property prices rising from an index of 113.7 in Q1 2020 to 126.1 in Q3 2021. The coliving sector itself has attracted significant investment, such as the €150 million invested in operator Colonies in 2020, indicating both investor interest and the likelihood of future growth and expansion across Europe.
Housing demand and market dynamics in the French real estate landscape
The French real estate market, particularly in its metropolitan areas, has been under considerable strain, with significant challenges in terms of access to housing. This is attributed to a steady rise in house prices, which has seen the index rise from a base of 100 to a range between 120 and 130 by the third quarter of 2021, with particularly sharp increases since the start of 2020. In parallel with the rising cost of housing, the rental market has seen an increase of around 3% to 4% on average in 2021 compared with the previous year, equivalent to monthly rents of between 650 and 700 euros. Rent increases are more pronounced in the provinces, where they are approaching 8%.
Increased pressure on the market is also reflected in intense competition for available rentals. In some French cities, such as Angers and Lyon, there are as many as 6 or 7 applications for every available unit, a clear indicator of the mismatch between supply and demand. Interestingly, Paris, which traditionally dominated demand, has been supplanted by other cities in recent years. What's more, the market is fueled by a steady influx of newcomers, particularly first-time buyers.
At the same time, young people are anticipating mobility: over 50% of adults aged 18 to 34 plan to move within the next two years. Given the limited supply and sustained demand, shared accommodation is emerging as a popular housing solution. Although the concept is still in its infancy, demand outstrips supply by a factor of ten, signifying a booming market segment.
Overall, the French real estate market is characterized by strong demand exacerbated by soaring prices, escalating rents and a palpable shortage of affordable housing options in metropolitanthese are giving rise to alternative lifestyles such as coliving, which respond to people's evolving desire for community living and shared services.
Key players driving the French coliving market
The French coliving market, an emerging sphere within the real estate market, features a variety of players, each carving out a niche and propelling the industry forward. Among these players, certain names stand out for their approach and their contribution to the evolution of the shared-rental market.
- The Babe community is a beacon in the sector, offering more than just a place to stay. It significantly enriches the living experience of young professionals through the integration of shared spaces and comprehensive services. With sports facilities, entertainment options, concierge services and restaurants, The Babel Community transcends the traditional concept of housing by enhancing and nurturing community spirit on a larger scale.
- La Casa and Les Colonies are emerging as specialists in shared accommodation, delving into the intricacies of communal living and pushing the boundaries of what shared housing can offer. Their particular attention to the coliving aspect enables them to refine the resident experience and offer a more focused living proposition that responds directly to their clientele's desires for community and convenience.
- Station F (Flatmates) enters the fray representing the intersection of coliving and the sharing economy. With a unique positioning that harnesses the strengths of collaborative consumption, it stands out as an innovator in the field, redefining the way individuals perceive shared living spaces.
- Traditional real estate players such as Bouygues Immobilier (Koumkwat) and Vinci Immobilier (Bikube) illustrate the sector's dynamism and elasticity by venturing into the coliving niche. Their extension into coliving shows how diversification can breathe new life into established entities, offering modern solutions to urban housing challenges while capitalizing on their solid real estate expertise.
Thanks to their innovative strategies and the diversity of their offerings, these major players are playing a crucial role in the expansion and recognition of coliving in France. By continuing to evolve and tackle the myriad of market opportunities and obstacles, they are collectively paving the way for the industry's promising future.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 01/03/2023
Summary and extracts
1 Market overview
1.1 Market definition and scope of the study
The coliving market in France refers to the economic activity related to coliving in France. It is a hybrid concept between furnished rentals and hotels. Coliving offers a new form of shared accommodation that is growing rapidly around the world. It offers rooms or studios in houses or residences, allowing people to enjoy both the independence of a private space and common spaces (kitchen, living room) to create social links. It is part of the broader trend of third places, spaces centered on the sharing economy and on the concept of community, just like coworking. The community dimension is thus a central component of this offer, as are the integrated services.
After a solid development of this market in recent years on the Asian and North American continents, coliving is now experiencing a craze in Europe: in 2019 there are more than 23,000 coliving spaces already built or under development. The main cities involved are often administrative or economic capitals, and we find in the ranking of cities according to their progress in the coliving sector several French cities: Paris is in 4th position, Lyon is 21st, Lille is 33rd and Marseille is 35th.
In France, coliving is on the cusp of strong growth, with over 3,000 spaces currently in the planning stages in many French cities. Nevertheless, it remains largely unknown to its main target group, young professionals, which is still a considerable obstacle to the market's expansion despite its real growth potential.
1.2 The growing European market
After a solid development of the coliving market in Asia and the American continent, coliving is now experiencing a craze in Europe.
According to the JLL Index, in ****, there were **,*** coliving spaces already built or under development.
The cities where this market is most developed are London and Amsterdam, which together ...
1.2 The national market: a growth reservoir yet to be activated
A French market ready to grow
By the end of ****, there will be more than *,*** coliving spaces available in France, up from *,*** in ****, with nearly *,*** additional beds currently being planned. This supply is still relatively concentrated, with the Ile de France region accounting for about half of the French coliving ...
1.3 Impact of the Covid-19 crisis
According to industry experts, the Covid-** crisis should have had a very positive impact on the market. Indeed, the rupture induced by the confinement and social news provoked a renewed interest for social link and community life. Young adults are increasingly attracted by the possibility of living together while maintaining their ...
1.4 Expert interviews
*. Benoît Jobert, The Babel Community
About the survey conducted in partnership with YouGov: what do you think of the data collected? Are you surprised by these results, especially by the proportion of young adults who have never heard of coliving?
I'm not surprised. Coliving is a relatively new term, and ...
2 Analysis of the demand
2.1 Strong demand for housing in a tight real estate market
The growing difficulty of accessing housing in French metropolises
The French real estate market is becoming increasingly tense, making it considerably more difficult to access housing, especially in the metropolitan areas. This difficulty in accessing housing is due in particular to a strong increase in housing prices: these reached an index ...
2.2 The need for social ties
The growing need for social ties in France is another central factor in the demand for coliving. Indeed, French demographics are marked by a growing phenomenon of household breakdown, with a significant number of people living alone. The following graph shows that the proportion of men and women living alone has ...
2.3 A significant and growing need for shared services
One of the main added values of coliving facilities are the shared services. The latter are the subject of a significant and growing interest from the population in France. Among the most requested shared services, there are gyms (***).
The most requested shared services France, ****, in
In addition, a significant proportion of ...
2.4 The main target of coliving: young adults and people in transition
Coliving, because it relies on social ties and a high degree of flexibility of supply, is mainly aimed at two targets: on the one hand, young active adults living alone, and on the other hand, people in a period of transition (***).
However, the main target remains the first category of population, ...
3 Market structure
3.1 Strong and dense external competition
There are many substitutes for coliving facilities, and these substitutes constitute de facto competition for the sector. The following table lists the competition to the coliving sector in * categories, direct competition and indirect competition (***).
The main competitor of coliving is the rental of a furnished apartment (***). On the other hand, traditional ...
3.2 The main forces at work
We can distinguish two main types of actors in the coliving sector: investors and operators. The latter manage the operation of coliving establishments. Sometimes, investors and operators are confused, for example the Axis real estate group which owns the brand The Babel Community.
The following table ranks the main players in ...
3.3 The main competing market: furnished apartment rentals
In spite of its structure of individual rooms in a common house, coliving does not face the competition of the colocation but of the rental of furnished apartments. Indeed, renting furnished apartments, like coliving, allows a certain comfort (***).
Competition from furnished rentals is currently very fierce: for the same budget and ...
3.4 The second competing market: shared apartments
According to LocService, a specialist in the rental market, sharing a room is the most economical way to live, making this housing solution a direct competitor for coliving. The following graph shows the average monthly rent for a shared room, including utilities, in ****. While the national average is ***€, there are strong ...
3.5 Interview with Maxime Sauvanet, founder of Les Pénates
Marine: Welcome to the Niche, the podcast that analyzes the niche market with the entrepreneurs who are moving the lines. I'm Marine and I work at Businesscoot, the startup that dusts off market research. Before we get started, subscribe to our podcast on Spotify and Apple Podcast. And now, let's get ...
4 Analysis of the offer
4.1 Social link and services: the focal points of the offer
In a housing market that has been very tight for several years, coliving has strong comparative advantages that are gradually emerging as a valid alternative. This is particularly true for services and the community dimension, which are the main advantages of coliving for young adults between ** and ** years old, the main ...
4.2 Typology of the accommodation offer
The coliving industry offers various accommodation solutions, from shared rooms to studios or even apartments with several rooms:
Shared room: shared rooms accommodate between * and * people, are fully furnished and often equipped with a bathroom. This type of offer is not very common, but it allows to propose a very competitive ...
4.3 Coliving prices
As previously mentioned, the main competition for coliving comes not from shared apartments but rather from furnished rentals. As such, coliving prices are also comparable to those of furnished rentals. While prices vary widely from city to city or according to the level of services offered, it is estimated that the ...
5 Regulation
5.1 A still limited and restrictive legislative framework
Because of its hybrid status between colocation, furnished rental and services inherited from the hotel industry, coliving is still subject to a vague regulatory framework. Indeed, the concept does not correspond to the framework of the hotel industry, nor to the framework of the residential sector. This vagueness creates uncertainty on ...
6 Positioning of the actors
6.1 Segmentation of the players present on the French coliving market
- Axis - The Babel Community
- Bouygues Immobilier
- Vinci Immobilier
- UKIO
- Kley groupe
- Colonies
- La Casa Coliving
- Cardinal Groupe
- Woodeum (Altarea)
- La Roche Cotard Coliving
- Hife Coliving
- Coliving.com
- Château Coliving
- Dovevivo
- Uxco Group
- Ecla (Uxco Group)
- Habyt Common
- Sharies Coliving
- Tendoors Coliving
- The Boost Society
- Harvey Coliving
- Cowool
List of charts
- How long do you think it will take to move?
- House Price Index
- Number of first-time buyers in the housing market
- Number of applications for housing supply by city
- Share of the population living alone, by age category
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Latest news
Vinci Immobilier, the first major property developer to launch a redundancy plan - 17/01/2024
- Vinci Immobilier has set up a job protection plan and begun a voluntary redundancy scheme.
- The French Federation of Property Developers (FPI) expects sales to be down by half in 2023 compared with 2022.
- Housing starts were down 19.6% year-on-year at the end of November, with 294,700 units built.
- In 2023, the number of business failures rose, with 122 developers going out of business, compared with 96 in 2022.
- For homebuilders, 867 insolvencies were recorded in 2023, after 624 in 2022 and 579 in 2021.
Real estate: coliving continues its rapid expansion | Les Echos reports that coliving real estate continues its rapid expansion. - 07/08/2022
- 8,300 homes in France by the end of 2021, in over thirty cities, 24,000 units by 2025
- 8 billion euros of investment expected
- 66 players in this expanding market
- Korian, France's 5th-largest social housing group, announced in early July that it would be expanding its range of shared apartments for seniors, consisting of buildings of 150 to 170 units, each with its own kitchen and bathroom facilities
- The company, which already has around twenty student residences in France with between 150 and 600 beds, and another ten under construction, plans to open its first two residences for young professionals next year, in Gentilly and Toulouse
"Real estate: Lyon-based Cardinal joins forces with Belgian Eagleston" - 10/06/2022
- Cardinal sales in 2021: 180 million euros, 50% of which in the Paris region
- Eaglestone achieves sales of 700 million euros following the transaction
- Value of Eaglestone real estate projects: 1.5 billion euros
- The subsidiary, Cardinal Campus, specializes in student residences, co-living (40 student residences under management) and co-working
Real estate: Lyon-based developer Cardinal joins Eaglestone | Cardinal invests in Eaglestone's real estate business - 10/06/2022
- Groupe Cardinal in exclusive negotiations with Brussels-based developer Eaglestone for a three-year buyout.
- Cardinal founder Jean-Christophe Larose joins Eaglestone's executive committee.
- Cardinal will achieve sales of 180 million euros in 2021.
- Cardinal has 40 projects totalling 200,000 m2.
- Eaglestone will have sales of 700 million euros after the transaction.
- Eaglestone has real estate projects worth 1.5 billion euros.
- Cardinal operates in the service sector, hotels and student residences.
- Cardinal manages 40 student residences (4,500 units) through its subsidiary Cardinal Campus.
- Cardinal Campus plans to have 8,000 lots within three years.
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