As India becomes more incorporated with the global economy, there has been a high growth in business travel over the last 4 – 5 years. Many business travelers in India from different locations of the world travelling time after time and spend few days and months in different locations. Staying in four and five star hotels for uncertain time is very expensive, in that way, serviced apartments appeared as an excellent choice.
A Home for short time
A serviced apartment is a home that is well fitted & furnished with kitchenette, bathrooms and more open than a room in a hotel. Equipped with all the modern technology of communications such as broadband, telephone and fax etc.
This novel concept of serviced apartments arrived in our country in 2005-06 in Mumbai, Delhi and Bangalore, but now have extended their existence to smaller cities, motivated by commercial activities.
The major user of this segment is the business class. The requirement is mainly generated by administrators of MNC’s and people who come to the country for long term of time. Because of many MNC, demand of service apartments in NCR is always on the rise, especially in Gurgaon & Noida.
Because of the globalization, many expatriates coming to our country for business purpose. Their staying period in country is unstable so this is better for them to live in a serviced apartment rather than in hotel.
Investment Opportunity
Even if many five star hotels are big players in the industry, many Real Estate Developers are launching these apartments to in Gurgaon. Many of these are targeted at the very rich who want to own housings in different parts of India without worrying about their repairs & maintenance.
Normal range of return in investment in Serviced Apartments In Gurgaon is 10 – 15 percent per annum. M3M Developer is constructing a serviced apartment complex in Gurgaon by the name of M3M One Key Resiments, plans to build studio apartments. It will also build space for retail stores, gym, office spaces and multi cuisine restaurants in the same place.
Another serviced apartment in Gurgaon is Burman GSC, Royal Regalia, Ireo Ascott, and Satya Nora, etc. Many local builders in Delhi NCR are planning to build serviced residences for sale to investors. Many developments in this segment are in the pipeline for other locations as well.
Like many residential & commercial developments, location is the important factor in this segment. Proximity to CBD, City Centers and lifestyle avenues with excellent connectivity will make possible higher rental income as well as best premium in short span of time. This is obvious that the quality of services also the main factor for rental, so it is necessary to hire an excellent team of service provider.
As the economy of our country rise, the requirement for serviced apartments will also rise. These homes can also become a preferred choice for those looking for a home like comforts. With growing demand, more real estate developer will start presenting facility management services, both openly or in partnership with hospitality groups.
So, this is an excellent choice for the people who want to invest their money in real estate for excellent return with a fixed monthly income.
