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.
There has been a sharp surge in business travel over the last few years with India becoming more integrated with the global economy. Executives from India and abroad frequently travel to business hubs and spend weeks and months working from different locations.
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. There is a huge demand for high-end serviced Accommodation in the Pune due to the presence of a large number of MNCs.
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. The concept of serviced apartments arrived in India in 2003-04. Starting from Pune, Mumbai, Bangalore and Delhi, serviced apartments have extended their presence to smaller cities, driven by commercial activities.
Top serviced apartment brands are operated mainly by mainstream hotel chains which want to lower operating costs and reduce the staff/guest ratio. A number of international brands have developed serviced apartments with local developers in Pune, Delhi, Mumbai and Bangalore, catering largely to the corporate sector.
Although mainstream hotel companies 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 as an investment opportunity with returns in the range of 9-14% per annum. At present, investment in residential properties is more for capital appreciation than rental income. Annual yield via rental income from a residential property is generally 3-4% a year while capital appreciation is 10-15%.
There has been a sharp surge in business travel over the last few years with India becoming more integrated with the global economy. Executives from India and abroad frequently travel to business hubs and spend weeks and months working from different locations.
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. There is a huge demand for high-end serviced Accommodation in the Pune due to the presence of a large number of MNCs.
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. The concept of serviced apartments arrived in India in 2003-04. Starting from Pune, Mumbai, Bangalore and Delhi, serviced apartments have extended their presence to smaller cities, driven by commercial activities.
Top serviced apartment brands are operated mainly by mainstream hotel chains which want to lower operating costs and reduce the staff/guest ratio. A number of international brands have developed serviced apartments with local developers in Pune, Delhi, Mumbai and Bangalore, catering largely to the corporate sector.
Although mainstream hotel companies 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 as an investment opportunity with returns in the range of 9-14% per annum. At present, investment in residential properties is more for capital appreciation than rental income. Annual yield via rental income from a residential property is generally 3-4% a year while capital appreciation is 10-15%.
