Institutional rental housing vs. coliving: what are the pros and cons of these models?

Institutional rental housing: stability and long-term facilities

This concept is characterised by entire development projects being built for rent and managed by professional investors or funds. In contrast to individuals renting out their flat, there is a centralised management that ensures a uniform quality of service.

These projects are usually built in cities where there is a high demand for housing and offer stability, transparency and often a higher standard. Tenants can count on long-term contracts, quality service and sometimes bonuses such as common areas or community activities.

Who is this model suitable for? For families, young couples or individuals looking for long-term housing without the commitment of ownership, but at the same time they want to enjoy the comfort of their own home. On the Czech market, such a model has started to appear mainly in recent years, largely due to the increasing unaffordability of housing. An example is the Fragment apartment building in Prague’s Karlín district.

Coliving: flexibility and shared experiences

On the one hand, Coliving attracts the younger generation, such as digital nomads, students or recent graduates. On the other hand, coliving spaces for the elderly are springing up around the world. Compared to institutional rental housing, coliving is based on shared space and the common values of its inhabitants. Residents have private rooms (often just bedrooms with bathrooms), while kitchens, living rooms, coworking spaces or gyms are shared with other tenants.

Coliving projects often originate in large cities and aim to maximum flexibility and low costs. Operators focus on the community aspect, where shared spaces encourage social interaction between residents. However, this type of housing can mean a lower degree of privacy and is usually suitable for short or medium-term stays. On the other hand, in the case of seniors, this housing model can be particularly suitable for improving mental health through daily interaction, promoting an active lifestyle and better financial conditions, where shared facilities such as kitchens or common rooms can help people on a limited budget.

Housing of the future?

Both concepts respond to the current needs of the market, where the demand for alternative forms of housing is growing. While institutional rental housing offers a stable basis for long-term planning, coliving is an attractive option for those who prefer flexibility, community living and lower costs.

With the rising cost of housing and changes in demographic trends, coliving is becoming an attractive alternative for many people.At the same time, the urban environment is dynamically changing to meet the diverse needs of its residents. Both models certainly have something to offer prospective homebuyers. We will then take a closer look at coliving in particular as part of Perspectives Research.