Spotlight Destinations: Where Serviced Apartments & Villas Are Booming in India

 The service apartments are proliferating in India at a staggering speed. The popularity of serviced apartments is growing beyond city centres, health centres and business corridors. They are now proliferating across non-metros, city suburbs, tourist destinations, etc.

 ·         Many leisure tourists are opting for serviced apartments and managed villas for family get togethers, social functions, etc.

 ·         Business houses are MNCs are expanding all over India via branch offices, subsidiaries, Jvs. For such set-ups it makes sense to own a service apartment to cater to its workforce, trainees and interns.

 ·         In the digital native era, when remote working is rising, many start-ups are now moving into tranquil scenic destinations in Goa, Uttarakhand and Himalayas. The key motivation is not just to operate from tranquil destinations but also leverage lower rental rates.

 ·         This is driving demand for service apartment and private villas in tourist destinations.

·         Rise in the MICE industry is further fuelling growth for flexi serviced living spaces in India. Similarly rise in start-up meets, incubation programs, hackathons etc. are also driving demand for the segment.

As the demand for flexi serviced living is rising in India, it is also becoming a preferred asset class for many investors, business and hotel operators. Hotel enterprises and developers are partnering with each other to introduce value-driven propositions that can cater to the demand for both short stays and long stays. Many investors purposefully purchase second homes not just for personal use but also to use them as flexi rental spaces. This can unlock new revenue streams and give elevated ROIs.

However, one should also keep in mind that service apartment is not completely a risk-averse investment. There are many challenges such as seasonal occupation, higher maintenance cost and rise in competition, etc. There can also be intense competition from other potential segment such as co-living.

Hence it is essential that before taking any serious business decision, one should opt for a market or a feasibility study. A tailor-made market study can offer a tremendous on ground insights about market size, competition, potential strategic framework, demand estimation, supply insights, consumer behaviour, etc.

To know more about the service apartment market in India, feel free to drop us a mail at info@theindiawatch.com or connect us 8076704267

 

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