Executives from India and abroad frequently travel to business hubs and spend weeks and months working from different locations. Staying at hotels for such long periods is costly. Serviced apartments offer an alternative. For house owners, they serve as an alternative to giving their premises on rent.
A serviced apartment is a furnished accommodation with a small kitchen and rooms generally more spacious than in a hotel. It also has modern communication facilities such as telephone, fax and an Internet connection. Some also offer conference rooms, besides housekeeping staff and a concierge service.
“The concept of serviced apartments arrived in India in 2003-04. Starting from Mumbai, Bangalore and Delhi, serviced apartments have extended their presence to smaller cities, driven by commercial activities," says Anshuman Magazine, chairman and managing director, CB Richard Ellis South Asia.
The main client base is the corporate sector. The demand is primarily driven by executives of multinational companies (MNCs) and expatriates who come to India on deputation for periods ranging from weeks to months.
Expatriates come to India for work. As the duration of their stay is assignment-based, it makes sense to take a serviced apartment on rent rather than staying in a hotel. Top serviced apartment in Ahmadabad are operated mainly by mainstream hotel chains which want to lower operating costs and reduce the staff/guest ratio.
Although mainstream hotel companies in Ahmadabad are major players in the business, several developers are offering these apartments to individual buyers. Some of these are targeted at the ultra rich who want to own accommodations in different locations without worrying about their maintenance. Several small- to mid-size builders are marketing serviced apartments in Ahmadabad as an investment opportunity.
Like any property investment, location is important in this case too. Proximity to business centres and good connectivity will lead to higher rental income and capital appreciation. As the quality of service also decides the rental yield, it is important that the facility is managed by a reputed service provider.
Serviced apartments can become a popular option for generating higher rental income from value-added services when professional property management companies start offering services and finding guests. At present, only local firms offer services for operating individual-owned apartments as fully serviced residences on a profit-sharing basis.
Demand for serviced apartments increases along with the floating population. These apartments can also become a preferred choice for those seeking a luxurious lifestyle.
A serviced apartment is a furnished accommodation with a small kitchen and rooms generally more spacious than in a hotel. It also has modern communication facilities such as telephone, fax and an Internet connection. Some also offer conference rooms, besides housekeeping staff and a concierge service.
“The concept of serviced apartments arrived in India in 2003-04. Starting from Mumbai, Bangalore and Delhi, serviced apartments have extended their presence to smaller cities, driven by commercial activities," says Anshuman Magazine, chairman and managing director, CB Richard Ellis South Asia.
The main client base is the corporate sector. The demand is primarily driven by executives of multinational companies (MNCs) and expatriates who come to India on deputation for periods ranging from weeks to months.
Expatriates come to India for work. As the duration of their stay is assignment-based, it makes sense to take a serviced apartment on rent rather than staying in a hotel. Top serviced apartment in Ahmadabad are operated mainly by mainstream hotel chains which want to lower operating costs and reduce the staff/guest ratio.
Although mainstream hotel companies in Ahmadabad are major players in the business, several developers are offering these apartments to individual buyers. Some of these are targeted at the ultra rich who want to own accommodations in different locations without worrying about their maintenance. Several small- to mid-size builders are marketing serviced apartments in Ahmadabad as an investment opportunity.
Like any property investment, location is important in this case too. Proximity to business centres and good connectivity will lead to higher rental income and capital appreciation. As the quality of service also decides the rental yield, it is important that the facility is managed by a reputed service provider.
Serviced apartments can become a popular option for generating higher rental income from value-added services when professional property management companies start offering services and finding guests. At present, only local firms offer services for operating individual-owned apartments as fully serviced residences on a profit-sharing basis.
Demand for serviced apartments increases along with the floating population. These apartments can also become a preferred choice for those seeking a luxurious lifestyle.
