What began as an experimental housing concept a decade ago has transformed into a thriving, mainstream real estate segment attracting billions in investment, according to a comprehensive new report released today at MIPIM by Artof.Co.
The "Coliving Report 2025" released today at MIPIM reveals remarkable growth metrics based on a survey of 21 global coliving operator founders: a 51% year-on-year increase in average units operated (from 632 to 955 units), consistent 93% occupancy rates, and an impressive average yield of 4-7% across the European sector.
"What was once an alternative lifestyle has matured into a recognized, investable asset class with proven financial and social returns," said Gui Perdrix, founder of Artof.Co.
"Ten years in, I've seen coliving grow from a leap of faith to a cornerstone of urban life. It's redefining housing, community, and returns - and this is just the beginning."
Increased interest, strong growth: key findings from the 2025 Coliving Operator Survey
Artof.Co asked 21 coliving founders to share their company data on a global coliving operators survey, illustrating the key trends in terms of occupancy, profitability, yields, and other key business performance indicators. While the majority of the data collected stems from contributors based in Europe, participants are ranging from a number or countries like Canada, Argentina, Colombia, Australia, Singapore or the US. The main findings were:
- Scaling Up: 43% of surveyed operators now manage over 500 units
- Financial Performance: 53% of operators have reached €3+ million in annual revenue
- Bankable Business Model: Banks now provide 27% of operator investment, becoming the most mature funding source
- Rising Yields: Operator yields range from 4% to 20%, with 10% average
- Stable Occupancy: 93% average occupancy (up 1% from 2024)
- Long-Term Residents: 13-month average stay duration
- Team Growth: 21% year-on-year increase in staff size, with operators averaging 34 employees
The Coliving Story on the Ground: Voices from Founders
Behind the statistics are the real-world experiences of coliving founders who've weathered the industry's evolution. In Colombia, building reconversions are on the rise: operators managing larger buildings often revitalize vacant office spaces, transforming them into vibrant communities. Meanwhile, one Swiss founder laments regulatory roadblocks causing some players to exit the market entirely.
"Simplification and basic services with community support emphasis rather than diverse options with low attendance," noted one founder, describing the shift toward quality over quantity in community programming. After years of chasing amenities, operators are starting to discover that meaningful connections trump flashy facilities.
The investment landscape is evolving too.
"Investment has been very difficult for the last 2 years, and it is starting to pick up again," shared one operator, while another pointed to declining interest rates as a possible catalyst. Although venture capital may be cooling on shared living models, family offices have emerged as ideal partners, aligning better with coliving's growth trajectory and financial goals.
This shift in investment patterns aligns with the broader trend of operators pursuing property ownership. Dedicated capital vehicles are now enabling operators to buy real estate and scale with greater confidence, marking a significant evolution in the sector's maturity.
Coliving scales up: from niche concept to €2.6 billion asset class
While rural coliving is gaining surprising momentum, urban coliving still represents the majority of coliving units to date. While the report highlights consistent growth of operators across key European and North American cities, the pendulum swings between opportunity and caution in rent-controlled cities:
"Demand for rental housing is very high, while many investors are selling off their apartments," observed one founder, highlighting the tension in European cities under rent control pressures.
The viability of mega-projects has been proven, with large developments of 150-500+ units emerging in major markets, showing high lease-up rates and strong resident satisfaction. Node's Hub Alcobendas in Madrid exemplifies this trend with its impressive 21-story tower containing nearly 900 un
Cross-border expansion is accelerating, with leading operators like Fllat and Cohabs successfully expanding from Belgium to France, Spain, the UK, and the USA, while Neighbourgood has taken its proven model from South Africa to San Francisco, demonstrating the global scalability of successful coliving concepts.
Not all see blue skies ahead.
A Barcelona operator warned, "The supply is growing excessively, mostly with models based on paying high rents." They predict a potential market correction in 2026, with signs of weakening demand already visible in early 2025.
Yet optimism prevails among most surveyed founders, who report "strong growth, increased interest in this asset class," and institutional players warming to coliving and flexible living concepts. As one founder put it, "The market and bigger players are opening up to coliving."
This institutional interest is manifesting in dedicated coliving funds, with Savills identifying €2.6 billion of capital ready to deploy into the sector.
Major financial commitments, such as Ares Management's allocation of up to €1 billion to expand Colonies' portfolio, underscore the sector's transition to institutional-grade status.
The 2025 report concludes that coliving has firmly established itself alongside build-to-rent apartments and student housing as a core component of the broader living sector, offering real estate investors a compelling combination of stable rental income and growth potential.
Download the Coliving Report 2025 with operational data and insights from 21 leading operators.
About Artof.Co
Artof.Co conceptualizes, develops, and manages coliving and micro-living projects - from selling 41m² micro-homes with 100% financing under €200,000 to full-cycle management of mid-scale coliving BTR residences. Based in Lisbon, Portugal, the company is committed to creating sustainable, accessible housing that works for renters, first-time homeowners, investors, cities, and the environment. Artof.Co also runs a marketing agency for coliving founders to help them scale sustainablly. It educates and connects the sector, helping drive the future of shared living forward.
Contact Information:
Artof.Co
Lisbon, Portugal
Gui Perdrix
gui@artof.co
+33 7 66 46 58 25
www.artof.co