Surging demand is pushing the serviced apartments sector into India’s property investment limelight. Indian Realty News reports a lack of hotel rooms means more and more quality serviced units are needed and developers are quickly answering the call.
Cushman and Wakefield Hospitality director Akshay Kulkarni said:
“Serviced apartments have found favour so far only as an offshoot of corporate needs and or due to shortage of hotel rooms in most cities.
“In today’s supply shortage scenario, it seems like whatever one can build will get filled up, even if only through word of mouth.”
Experts also see international players digging into the Indian market, the site reports. One case study of this is Brigade Hospitality’s tie-up with the European group Accor for the upcoming Mercure Homestead residences in Bangalore’s Koramangala area.However some people are warning against investor over-reliance on the sector.
Mohan Kumar of Taj West End said:
“One has to look at the growth of the popularity of serviced apartments in context of the huge investments being made in hotels now.”
Thousands of new hotel rooms are expected on the Indian accommodation market by around 2012, with up to 5,000 units expected in Bangalore. Taj Hotels runs a chain of residences featuring more than 70 hotels across the world including the UK, US and Middle East.
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