Growing Demand for Serviced Apartments in Mumbai

Demand for serviced apartments is growing as more and more expat professionals are packing their bags and coming down to India to kick start their overseas business operations. According to experts, there is a good demand for such apartments in India, especially in six major metros in the country, including Mumbai.

The sectors generating demand for serviced apartments in Mumbai are IT, ITes, KPO, BPO and bio-technology. Even sectors like manufacturing, consulting and financial services are pushing the demand for such apartments in the city.

According to industry experts, demand for this sector is expected to rise with the growth in Indian economy and set up of business operations across secondary and tertiary cities. It will also increase due to the rise in domestic leisure travel trend where individuals or families prefer to rent apartments during holidays rather than staying in a hotel.

Medical tourism will also give the demand for serviced apartments in Mumbai the required push. There are chances that few builders in Mumbai will build serviced apartments next to large hospitals for catering the demand of people who come to India or specifically Mumbai for medical reasons.

Serviced apartments are becoming a popular choice as compared to hotels. Many people are investing in a 2-3 BHK apartment in Mumbai and putting them in the market as a serviced apartment. These apartments are opted by people who want to get a feel of ‘home away from home’ and not get confined inside a hotel room for an extended stay in Mumbai.

There is a lot of choice available as far as such apartments are concerned. Depending on the location and amenities, rates of these apartments vary. One can get a serviced apartment with private living quarter with a kitchenette and full office facilities whereas other apartments also have concierge and housekeeping services.

According to some industry experts, serviced apartments have better occupancy rates compared to hotels. They are also a great investment option. For instance, if you do some research, you can get a one bedroom serviced apartment in Andheri at approximately 65-70 Lacs INR. This can be a great investment proposition for people who wish to earn some good money through their property. If they don’t stay in the unit, they can opt for a leaseback option that many developers have on offer.

Many such apartments have come up in areas such as, Andheri, Worli and Goregaon. The serviced apartment segment is witnessing excellent growth opportunities in these areas because these localities are prime commercial hubs, having a steady flow of visitors from all parts of the world all year round.

So, if you are planning to buy a property in Mumbai for investment purpose, it can be a good idea to diversify your exposure to serviced apartments for more income than a residential apartment. However, make sure you undertake a due diligence of the project before you invest in a property in any part of Mumbai to avoid hassles.