Mumbai, March 2 -- Aditya Jain did many rounds of paying guest (PG) facilities before he zeroed in on Oyo Living's new, shared living facility in Bengaluru's AECS Layout.He has taken up a bed in a twin-sharing room in a four-storey building at a monthly rent of Rs9,000. The build-to-rent model that has worked well globally in many countries hasn't even scratched the surface here Jain, 27, who migrated to Bengaluru from his home town Jaipur last November and works at privacy-centric communication startup Clevert, says he didn't like the quality of the crammed PG rooms. "The rent [at Oyo] is a bit on the higher side in this property, but after a day's work, you want good sleep (sic) and a clean place. Myofficeisjustakilometreaway andIusuallywalktowork.Inthe weekends, some of us get together and play foosball or other indoor games in the community area. There is also a kitchen which we can use, and I love cooking," he said. AECS Layout in Bengaluru's eastern edge is a bustling residential area, dotted with scores of buildings offering PG accommodation. They charge between Rs5,000-15,000 per month for an all-inclusive rent and food package. It's convenient for singles and millennials, given its proximity to tech parks along the OuterRingRoad,thestartuphub in HSR Layout, and the office hub further east in Whitefield. But there is a new game in town beyond the PG ecosystem, with startups making a play on housing, of all things. The Oyo Living rental space which Jain now calls home opened sometime in mid-2018 and is part of over 2,500 beds that the company manages in Bengaluru. But why would Oyo Hotels & Rooms, the country's second most valued start-up, venture into long-term, fully managed housing rentals for the millennial cohort? The simple reason is that almost every major Indian city has its own version of AECS Layout- geographies where young men and women battle it out in a landscape dominated by brokers, crammed housing, arbitrary rules, and an air of uncertainty. India'sreal-estatemarket is notoriously flawed. WhileIndiancitieshaveabout 9 million vacant houses according to Census 2011, thousands of people make do with no housing or bad housing. In many ways, a thriving rental market is one way out of the mess since a monthly payment is a far more affordable prospect for most Indians, especially young people who are at the start of their careers. But the rental market is largely fragmented and unorganised. The build-to-rent model that has worked well globally in many countries hasn't even scratched the surface here. It is a space ripe for disruption. And in the past 3-4 years, a slew of startups have begun to do just that, particularly targeting young adults and millennials (those in their 20s and early 30s) who need a place to stay when they move out of their parents' nest or are moving to a new city. Commonly termed "co-living facilities", these offer the vibe of a hostel with fancy facilities- the living spaces come with a shared laundromat, gym, Wi-Fi, kitchen and housekeeping. "Housing is a complicated, structural problem to solve," said Kavikrut, chief growth officer, Oyo Hotels & Rooms. "You deal with a network of people-owners, brokers, and friends-who tell you which area to live in and where not to, and then you make multiple visits to these properties, and then you think of deposit, advance and furniture. We just want to make living easy. There is a growing trend of more consumers who want on-demand homes or homes not fully committed for long leases," he added. In a short span, Oyo Living has opened 150 properties with 10,000 beds, including studio apartments and one, two and three bedroom apartments on a shared and private basis, in Bengaluru, Noida, Pune, and Gurugram. The company plans to expand to the top 10 metros by 2019-end with over 50,000 beds. Frustrated with the existing options,young people are clearly opting in. A December 2018 survey by property advisory Knight Frank India observed that 72% of millennials gave co-living spaces a thumbs-up and over 55% respondents in the 18-35 years age bracket were willing to rent co-living spaces. The survey, which spanned India's top cities, noted that the sweet spot for rentals was a monthly outflow of Rs10,000to15,000,whileproximity to work and social infrastructure remained top priority for millennials. ...