A Rukita apartment
According to the 2019 Indonesia Millenial Report, 65 per cent of millennials do not own a house. The reason? Property prices outpace the purchasing power of these first-time buyers.
In a country where over 60 per cent of the population are millennials, this was too big a problem to miss out for Sarah Soewatdy. Along with three other co-founders, she created quality and affordable co-living spaces to solve this pressing problem.
“Our first offer to the market was quality co-living, where tenants can live in a community with a perfect balance between private and shared space,” shares Soewatdy in an interview with e27.
Targetting millennials living in urban areas, the Sequoia Surge-backed startup seeks to offer them a convenient, communal and comfortable living space. The company also assists landlords in transforming their properties into higher-yielding assets while providing affordable co-living options for tenants.
It was no surprise the concept of co-living was well received. According to a report, Indonesians are more open to sharing economy services, with 87 per cent likely to use such services, compared to the global average of 66 per cent.
A certain Black Swan event this year has also generated tailwinds in the co-living industry.
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Increased growth
Amidst the tightening of purse strings and flourishing work-from-home trend brought about by the pandemic, Rukita has thrived. Weakening purchasing power due to the sluggish state of the Indonesian economy has seen a shift in trends within the residential sector. Millennials have postponed their home-buying plans and are opting for renting a property instead. This has led to a boom in the co-living business.
The proptech startup reported good business performance amid the pandemic. Rukita claims it recorded a 20 per cent month-on-month occupancy growth rate in the third quarter of 2020. Additionally, the new tenant registration grew nearly 2.5 times in the same period.
To date, Rukita operates more than 3,500 rooms in the Jakarta metropolitan area.
Soewatdy remarks that the pandemic has brought a wave of uncertainties, making people more cost-conscious and meticulous in financial management.
“Hence, we are confident to be able to present a real solution and give economic as well as psychological assurance to landlords. We offer them the opportunities to transform their properties into higher-yielding assets, thus they can have peace of mind while enjoying passive income without hassle,” she adds.
Currently, Rukita operates more than 3,500 rooms in the Jakarta metropolitan area. “We are breaking the misconception of affordable living projects that often heavily focus on affordability and overlook other key factors,” Soewatdy says.
Adapting to the new normal
Rukita has been continually releasing new initiatives to adapt to the new normal brought about by the pandemic. It recently introduced Rukita Workpod, where employees can work and live together with supporting facilities to facilitate a more conducive and efficient working environment.
The startup has also introduced virtual property visits, where potential tenants can explore units safely without a direct visit. With this set of initiatives, Rukita aims to provide sustainable earnings and peace of mind for partners in uncertain times.
“We continue adapting and being agile so we can stay relevant to the changing needs through our set of new normal initiatives,” Soewatdy remarks, adding that new initiatives will be rolled out to further improve the well-being of tenants and landlords.
Also Read: Why mixed-use is the future of real estate in a socially distanced world
She remains coy on fundraising plans, but shares that the expansion of its business will remain aligned to Rukita’s mission to create quality co-living experiences for both tenants and landlords.
Looking into the future, Soewatdy believes that changing consumer behaviour brought about by millennials will result in co-living having a prominent role to play within the real estate industry.
“Millennials are seeking the finer pleasures of life and are looking for better-looking rooms with a complete suite of facilities and services for their convenience,” she closed.
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Image Credit: Rukita
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