The Indian economy is evolving, and with it are evolving people’s way of living, needs and the way they want to experience hospitality. This is where service apartments in Koregaon Park and service apartments in Kalyani Nagar come into play. While serviced apartments are not a new concept for Indians, they sure are garnering more attraction now, slowly becoming an asset class in the country. This new class of assets is ideal for those who need to travel to a different city for work, vacation, and medical treatments. Not just that, it is also a preferred choice for those who are looking for new loging facilities for their families.
What is a Service Apartment?
Broadly speaking, a service apartment is an accommodation that is fully furnished, provides all the basic facilities as well as the kind of services that you’d get at your stay in a hotel. These apartments can be booked on a night-by-night basis, or for longer durations as well depending on the property and the owners. For example, service apartments in Viman Nagar are such accommodations which include bedrooms, living space, a kitchen, housekeeping, and modern amenities such as refrigerator, microwave oven, etc. People prefer a serviced apartment over a hotel since all these facilities come at a fraction of the fortune one would spend at a hotel.
Investment opportunities and the Real-Estate angle
India’s real estate sector is growing and evolving. In this atmosphere of growth, it is only natural for new asset classes to emerge in addition to the historic residential, commercial and hospitality asset classes. The driving force behind these emerging asset classes is the consumer needs and consumption patterns that themselves keep evolving with time. But one would assume that it’s only the people opting to stay in a serviced apartment, over other lodging options, who are benefitting from this shift. However, that’s not true. While mainstream hotel companies benefit from the growing popularity of serviced apartments, investors in the real-estate sector and the developers are also profitable stakeholders in the plethora of business opportunities that this emerging asset class has created. They do this by offering these serviced apartments to individual buyers- generally the upper-class gentry that wants to own accommodations across the country, without the hassle of maintaining it.
While one might know about the potentials a sector, in particular, serviced apartments have, in-depth knowledge of the hurdles and the overall understanding of the technical aspects of the industry are crucial. If the players involved know how to transform and monetize this new form of accommodations into assets, they can create a situation wherein there are high returns for the investors. As India’s economy expands, the demand for serviced apartments will also increase. The floating population, i.e. the people constantly on the move owing to the nature of their business, will also rise. Added to this, the demand generated by the growing travel industry will lure people into experiencing luxury in a budget. Thus, time is right for someone looking to invest in real estate since a serviced apartment will provide the investor with a higher annuity income than what residential apartments can give.
Therefore, it would not be wrong to say that Service Apartments are not only an emerging asset class in India but a highly profitable one at that. Since all the parties involved are benefitting from this emergence and the subsequent growth opportunities created, this trend of serviced apartments being lucrative is expected to remain in the near future as well.