Builders find more room for service apartments in metros

Written by Mona Mehta | Mumbai | Updated: Aug 10 2009, 06:43am hrs
Development of service apartments in major metros is the latest trend in the Rs 10,000-crore real estate sector. Top builders aim at supplying 100 % service apartments to attract tourists and business travellers. Currently, the demand for service apartments in India is growing at the rate of 100% yearly.

Service apartments are fully furnished, ready-to-use apartments, usually 300 to 500 sq ft in size. They are complete with a small kitchen, washing machine and bath, with no room service, though in some cases there have been instances of that being provided as well.

Delhi-based Raheja Developers is planning to venture into the development of service apartments in India, for which the company is planning land deals in Delhi, Noida and Faridabad. The move coincides with the Commonwealth Games next year.

Navin Raheja, managing director of Raheja Developers, told FE, In the next one year, we will launch 150 units of service apartments in various sectors of Gurgaon to cover the huge shortage of hotel rooms and apartments for tourist and business travellers. The demand for service apartments is suddenly high in the NCR because of the upcoming Commonwealth Games. We would be offering 25% lower room rents, an alternative option to steep hotel accommodation. The area would vary from 400 sq ft to 600 sq ft and would be extremely competitive in pricing.

Other builders in the race are Parsvnath, Ansal Group, Supertech, Assotech and Vatika. Most major hospitality chains in India have undertaken a number of service apartment projects in the past. Taj Hotels own Taj Wellington Mews service apartments in Mumbai and have plans to expand the project to other metros as well. Oakwood is also developing service apartments in Bangalore, Mumbai and Chennai. Pradeep Jain, chairman of Parsvnath Developers, said, We are currently developing service apartments in Chandigarh, Parsvnath Pride Asia. The company has already launched Part of City Mall in Bhiwadi, an industrial town next to Gurgaon. The total developable area would be 123 acres and built-up would be four mn sq ft, Jain added.