- Category: NRI
- Published on Friday, 17 February 2012 17:32
- Hits: 1067
The serviced apartment segment in real estate India is sufficiently stimulated to vie for a place in the Indian hospitality sector. NRI real estate services are getting better with time. Spurred by the 'walk-to-work' concept and dramatic rise in business, corporate and tourist travel, realty majors have sprung into action to meet the growing demand of PIOs, global NRIs, expatriates and working professionals in India.
Business executives/ high-profile executives flowing into the country do not prefer staying in hotels but demand quality services that derive much from the NRI insight and ingenuity.
Typical industries involving high level of travel are BPO and IT which have fired the imagination of real estate developers in India in this direction. Pune, which is one of the popular destinations for NRI realty investment is a good example of a city with an ideal mix of corporate culture and real estate that suits international tastes.
The 'service apartment' concept:
Service apartments are fully furnished and self-catering units that combine the conveniences of a home with the facility of house-keeping, room-service, 24-hour receptionists, security and travel desk. Besides a self-help kitchen, laundry, telephone, high-speed internet connectivity, health clubs, some even offer value-add services for tourists and NRI groups such as sightseeing and guided shopping for spouses.
The Marriott Executive Apartments property at Powai has onsite convenience stores and restaurants and concierge, entertainment areas and social programmes and has takers including NRIs from abroad, from the UK, USA, Europe, Australia and South East Asia.
How service apartments clicked:
Often, such apartments are required by business travellers, tourists or corporates to meet their short-term accommodation needs. The concept is a rage also for the fact that it allows the user to give a personal touch to the place and to use the space in very much in the way they want.
Beckoning corporates and MNCs in India:
Service Apartments are given out for two to 6 months at a time and in general cost less than a four-or five-star hotel in the same region. In fact, they allow up to 25-40% savings off prevailing hotel prices in interim housing. The occupancy rates are moving up fast in the corporate market. For multinational firms, service apartments work out to be a cost effective option, enticing many companies to switch their accommodation budgets to serviced apartments.
Encouraging figures and developments:
The following facts and developments are indicative of its vast scope.
· Industry size is estimated at about 20% of the total hotel industry business.
· Ansal is building five types of service apartments in Greater Noida and Sushant Nagar City townships.
· Parsvnath building apartments are coming up at Bhiwadi in Rajasthan and Chandigarh.
· Besides Ansal API and Parsvnath Developers, a fusillade of new contenders are making their presence felt including Mennen Aviation & Hospitality Ltd, which plans to set up 15 service apartments by 2010. It will utilise a land bank of about 100 acres spread across Maharashtra, Goa and Karnataka.