Realty Check | Day 18 | Ajit Koushik: Good prospects for serviced apartments sector in India

02 Sep,2014

By Ajit Koushik
Area GM – India, Ascott Ltd

 

In the India scenario, the number of international arrivals into India has increased over the last few years owing to an increase in FDI. Now that a new government has been formed, FDI into India expected to nearly double from US$29 billion in FY 2013-2014 to US$40 – 45 billion in 2015 (Source: Department of Industrial Policy & Promotion and Care Ratings Report 2014).

 

With increasing FDI and more multinational companies setting up operations in India, demand for quality accommodation will grow from the influx of expatriates, project teams and business travellers (both foreign and domestic). The number of international tourist arrivals in India in 2012 was around 6.8 million and is growing annually by 4.3%. The number of domestic tourists traveling within India in 2012 was 1036 million and has been growing at 19.9% year on year. (Source: Report titled “India Tourism Market & Future Forecast (2009 – 2015)” by ResearchandMarkets.Com). These factors indicate that India is a key market with huge demand and evidently there is a limited supply of quality serviced residences. There are only a few global players who have currently entered the India market. So in terms of the long-term accommodation, there is still a potential for the serviced apartment category.

 

Foreign expatriates and business travellers coming into India on extended stays of more than a month are no longer satisfied with small hotel rooms. They prefer larger spaces that provide a home-like atmosphere complemented by the services and facilities of a hotel. That’s where serviced residences come in.

 

Coordinated by Shobhana Nair

 

Post a Comment 

Comments are closed.

Videos