Industry Benchmark
By Mark Harris
Regional Analysis
India
Since January 2007, the price of real
estate in India has increased by more
than 40% in some parts of the country.
The country's GDP grew at a robust rate
of 8.4% during 2005/06 and this level of
growth is expected to be sustained in the
coming years. The supply of hotel rooms
in certain key cities in the country does
not and will not meet demand in the
short term.
Despite the ongoing expansion of the
Indian economy, increasing number of
multinationals coming into India, and
a surge of single woman travellers,
serviced apartment are currently available
in only a few Indian cities.
In Mumbai however there is an abundance
with players like Taj Wellington Mews,
Lakeside Chalet Marriott Executive
Apartments, the Grand Hyatt Residences,
and the Grand Residences attached to the
InterContinental, with a total of 400 units.
Serviced apartments are starting to open
in secondary cities like Gurgaon and Noida
in the National Capital Region (NCR) due
to availability of large land parcels and the
active demand from multinationals, some
of which have relocated their corporate
base outside New Delhi.
Along with Gurgaon and Noida,
Bangalore and Hyderabad have surfaced
as major markets for serviced apartments;
these cities have also seen a few
independent, unbranded serviced
apartment players active.
Unlike Singapore, where a minimum
seven-day requirement is mandatory for
a product to be classified as a serviced
apartment, the rule of length of stay is
non-existent in India, and it is possible to
stay in many serviced apartments on a
daily basis.
Increased demand is prompting
international and Indian property
developers to cash in on the growing
need for one-bedroom, one-kitchen
service apartments in cities like Pune,
Bangalore, Chennai and Kolkata.
Many southern India-based real estate
companies, including Hindu Properties
and Puravankara, are also evaluating the
potential of serviced apartments.
Oakwood Asia Pacific - the world's largest
rental housing solution company,
opened a portfolio of luxury, serviced
apartments in Mumbai, Bangalore and
Pune during 2007 and will have done
so in Chennai by the end of 2009.
Source: HVS International Research
The graph below shows an interesting split of types of apartment
in Asia, a demonstration of the stage of the development of
the serviced apartment industry in each location which
will be interesting to track in future Global Reports.
Source: HVS International Research