Of late, serviced apartments have
come up in a big way within the Indian real estate market. All major Indian
cities have opened up to this concept. Delhi/NCR is no exception. Read on to
know more.
Introduction
As India’s economy begins to show
greater signs of growth and improvement, the economy continues to be shaped
accordingly. Business travel has become quite a common phenomenon in the
country now as considerable change is being witnessed all across. As India
becomes more integrated with the global economy, business travel becomes more
imperative for executives encouraging international clients visiting the
country and staying over for long periods to strike up an ideal business deal.
Most often traveling for business
purposes imply that an individual has to spend a substantial amount of time in
one particular place – stretching up to weeks and sometimes even months.
It is imperative that putting up
in hotels for long periods of time would be very expensive. So, keeping in mind
to cater to such professionals, the concept of serviced apartment were launched
in India. Builders were pretty smart enough to grab the opportunity and thus
major Indian cities like Delhi/NCR have introduced serviced apartments
extensively.
What is a Serviced Apartment?
A serviced apartment is a kind of
studio flat that is usually smaller in floor area and well-furnished with some
of the basic amenities. Usually serviced apartments are rent out on either
short-term or long-term basis to end users. It is a fact that most of the end
users of serviced apartments happen to be business travellers. So, in order to
fulfill all the basic requirements, a serviced apartment is fitted with a small kitchen; rooms are normally bigger
than hotels; phone is provided with phone, fax and of course a Wi-Fi
connection. Proper housekeeping staff and concierge services are provided for
the residents of serviced apartments.
Steady Growth of Serviced Apartments
All major business centres in the
country and most importantly metropolitan cities like Delhi/NCR have adopted
the concept and serviced apartments are fast becoming a fad among young
Indians. The strong growth of the IT sector in Delhi NCR has been instrumental
in promoting the concept of serviced apartments to a great extent. While most
of the serviced apartments are concentrated in Gurgaon, Noida on the other hand
has started opening up to the concept quite rapidly. Investors are banking on
the potentialities of the same and thus hosts of serviced apartment are coming
up in the region. While some are built exclusively for business purposes other
are pining for a larger perspective – buying and investing on a serviced
apartments. For example, there are certain services that ideally offer serviced
apartments for long stays while on the other hand leading developers have
capitalized on the economical values of the same. Wave Infratech, leading real
estate builder have launched a residential project in Noida, dedicated only to
serviced apartments. According to industry experts, the demand
for serviced apartments in Delhi/NCR is expected to rise in the coming
future.
Investment Returns
Interestingly, very recently a
trend has been noticed—that of a certain percentage of the population opting to
buy/invest in a serviced apartment. The reasons speculated for these are the
affordability factor and low maintenance cost. And now to add on to it,
investment returns on these real estate
properties are actually pretty good. At present the returns on these
apartments are around 9% -14% which is expected to shoot up in the coming
future. Certain areas in NCR like Noida and Gurgaon have even recorded a 15%
profit in investment yields of serviced apartments. Three main NCR-based
developers – Wave Infratech, Central Park and Shubhkamna Buildtech has already
launched an array of serviced apartments.
Going by the current trends it
can be said that serviced apartments have a pretty good future in India. So go
ahead and start investing in serviced apartments.
0 comments
Post a Comment