 back to another episode of Start It Up. Previously we had shown you an interesting real estate startup opportunity which was of co-working spaces and today we bring to you another residential real estate startup opportunity which is called Co-Living Spaces. So before we help you to understand how to set up a co-living space we will tell you what is co-living. Co-living is a modern affordable housing concept where residents they share the kitchen, the living area, the other spaces and at times even rooms or washrooms in a single apartment. But also it is more about it's not just about living together but it is really about community living where residents share common values, work or even interests. What sets co-living apart from regular rented accommodation are its modern and fully furnished interiors with first class maintenance facilities like internet, laundry, housekeeping, security and even entertainment which is taken care by the space owner. In one sense co-living is like living in a hotel where all facilities and comforts are there and it is becoming popular because it is less restrictive and less discriminatory than the landlord based lease model. The success of co-living spaces also depends upon how the owner breeds engagement amongst all their residents and networking through community building and socializing units. So who are your prospective clients if you're going to start a co-living space? The co-living sector is majorly targeted by students and by young professionals who have migrated from small cities to big cities in search of education and job opportunities. Co-living is currently a more urban phenomena where professionals or students in the age group of 20 to 30s more 12 one to 12 in the co-living spaces instead of really families or retired people. The market of co-living is very large and only going to get larger. Reports have suggested that today Indian big cities have close to 15 million migrant students and 40 million migrant professionals who come to cities for work and studies. There is an untapped demand of 16 million beds currently and this creates a huge opportunity for entrepreneurs and startups operating or looking to start a co-living space. Let's understand what is the investment required for a co-living business? So opening a co-living area near an office or close to colleges is of course very lucrative because your clients would prefer to stay near their area of work or study. For example, if you have a 50,000 square feet area you can build up to 40 units of 800 to 900 square feet area which will require an investment of nearing rupees 15 lakh to 20 lakhs per unit with two beds. This investment can go up to rupees 15 crores or 20 crores if you need to set up 100 rooms with 200 beds. Now this is an average cost that we have taken. Of course this average cost of construction will vary from city to city in big cities it would be higher as compared to smaller cities. Now the average operational expenses will come down to nearly rupees 1250 per bed with add-on services. Sometimes the overall expenses can go up to rupees 2250 per bed. While this is the investment side and it's big on investment let us also understand the revenue side of co-living spaces. You can actually rent one bed at about rupees 8,000 to 10,000 rupees per month. It will include amenities like bed, almirah, table, air conditioners, geyser, curtains and certain housekeeping facilities. Companies also generally take co-working spaces, generally tend to take about two months of advanced deposits from the tenants. You know your tenants would typically either require individual rooms or they would require shared rooms and washrooms as per their budgets. The rent is of course the main source of revenue for a co-living space but it will also depend on different cities. You can expect a co-living space to break even in about four months of time. Though while it is a cash intensive business opportunity but of course the promise in the long run of becoming a lucrative business is very very big. Thank you very much for being with us on Start It Up. I hope you enjoyed the business opportunity. Please be with us as we keep on bringing you more startup ideas coming few days.