Mumbai ranks 5th among 20 cities in Asia Pacific that can emerge as co-living destination, property consultant Knight Frank said on Monday.

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New Delhi is at 11th rank and Bengaluru at 19th are the two other Indian cities in the list, according to Knight Frank's report 'Insights on Co-living – An Asia-Pacific Perspective'.

"Mumbai is ranked 5th in its co-living index that tracks markets' possibility of success as co-living destination," the consultant said in a statement.

Beijing, Tokyo, Shanghai and Hong Kong are the top four cities in the list.

The report covers 20 major Asia-Pacific cities classified into six key attributes that are likely to contribute in fostering the growth of co-living. The six attributes are tech & financial hub, venture capital deals & growth, housing affordability, university population, general population & human development index, and quality of life.

"With a weighted average score of 65.94 across six basic parameters, Mumbai (5th) has emerged as the top potential market for co-living in India due to higher prices, rapid and continuous gentrification as well as its unchallenged position as India's top economic centre, offering vast opportunities for growth of the co-living sector," the consultant said.

Job opportunities in the financial sector and low housing affordability are major driving factors for the growth opportunity in the co-living sector in Mumbai with 55 percent weightage as per the co-living Index, the statement said.

Mumbai's large population is another major factor that offers scope for market penetration by domestic co-living operators.

"288 percent spike in the venture capital deals in Mumbai is a significant factor accounting for quality of job creation resulting in growth opportunities for co-living sector."

New Delhi ranked 11th with a total score of 53 in the co-living index. Bengaluru (ranked 19th) is third Indian city after Mumbai and New Delhi which are placed among other major Asia-Pacific cities in the co-living index.

"Co-living is experiencing rapid traction across the markets and has been a disrupter in many ways in markets across the world. Amid changing lifestyles and stratospheric housing prices across major economic centres, co-living provides an alternate flexible accommodation option for temporary and transient workforce," the consultant said.

This modern form of urban housing is not a new concept, with other forms of shared spaces already in existence such as hotels, serviced apartments, hostels etc.

Building upon a similar model, co-living innovates by providing a curated social environment that builds upon the community via three distinguishing characteristics; shared spaces, events and community.

As compared to 2010-2012, the venture capital deal flow in Mumbai spiked by 288 per cent in the period between 2015-17.

The rise in deal flow is a key indicator of the quality of job opportunities which are being created in the financial hub and a ready demographic pool which the co-living operators can cater to, given the omnipresent shortage of quality rental housing dwellings near employment hubs.

New Delhi features on the co-living index at 11th position. Despite a relatively higher housing affordability than Mumbai, the general population and human development index in New Delhi is much higher than that of Mumbai, making it an apt choice for co-living operators to expand in as this is a key demand driver.