Accommodation Times News Services
Many builders are on to this bandwagon but with a twist. They are going for ‘Apartment Hotels’ and not service apartments for example there are two properties in Mumbai, the Residence of Rahejas and Emerald of Jashwant Mehta group. But, they are Apartment Hotels and not so economical to stay. The concept of service apartment is little different than that of Apartment Hotels. But all over India the concept is steadily taking roots. There are three key factors to be considered. First is that business and holiday travelers are increasing by the day and add to this is the transit visitors to Mumbai, who come here for medical treatment and a number of other purposes. The need to stay from few days to 2-3 months and also cook their food. Secondly the hotel rates in Mumbai are whoopingly high, and of hotels in other metro cities. And the third factor is that there are thousands of ready flats vacant because of the slump in the property market. Service apartments should be available on daily charges and should be around Rs. 1000 to 3000 per day depending on the facilities, size and locality. The endless stream of visitors in Mumbai and the other metro cities, such service apartments will be a boon and at the same time will open the flood gates of revenue to the developers and investors, who’s flats are unsold and their investment are struck up in such flats, while they have to pay high municipal taxes, society charges and maintenance without earning anything. On the other hand, driven by an increasing demand from the corporate sector, particularly the IT and ITES segment, business and leisure investors lured by attractive rentals, service apartments that combine all the comforts of home with the frills of a luxury hotel at a fraction of the cost- is firmly taking roots in real estate industry. Service apartments are furnished, linen, cutlery, crockery, kitchen utensils and gadgets to cater to the everyday needs. Many developers offering investors a chance to buy service apartments with the lure of earning attractive returns by way of rentals, service apartments offer.