Investing in service and managed apartments


Investing in Service and Managed Apartments

By Evente Clinic

The new-age investors are looking for new and high return investment options. Investors have started investing in real estate again after a few years of slow down. Investors lately are very keen on investing in serviced apartments.

Serviced Apartment is the umbrella term for a type of furnished apartment available for short-term or long-term stays, which provides amenities, housekeeping and a range of services for guests and where most taxes and utilities are included within the rental price.

The sector is increasingly having an impact on leisure travel as people find serviced apartments are available all over the world as a credible and cost-effective alternative. They are especially economical for longer stays, group travel or family parties, allowing savings on dining out and offering in-house entertainment as well as allowing you to live like a local.

“They are especially economical for longer stays, group travel or family parties, allowing savings on dining out and offering in-house entertainment as well as allowing you to live like a local.” 

The concept of serviced apartments arrived in India in 2003-04. Starting from Mumbai, Bangalore and Delhi, serviced apartments have extended their presence to smaller cities, driven by commercial activities.

According to experts, if there has ever been a good time to invest in serviced apartments, it is now. The corporate travel market in Mumbai is growing rapidly and the growth is expected to accelerate. People are increasingly travelling inter-state for both, business and leisure and they are seeking long-term, cost-effective accommodation options.

These are some of the reasons that will make the investment worthwhile:

  • Serviced apartments tend to offer larger, better value accommodation than a hotel with a range of amenities, innovative facilities and personalized services. For a regular traveller, these are a better option than costly hotels and unsafe low-cost hotels.
  • Their proximity to business centers and good connectivity leads to a higher rental income and capital appreciation.
  • They are ideal for business and leisure travellers for short- term or long -term stays and stands out as a cost-effective or budget-friendly accommodation with no compromise on services and facilities.
  • Globalization leading to increased tourists and business travellers is expanding the demand for serviced apartments in India with a further growth potential immensely in the coming years.
  • The excellent onsite facilities and management services provided at a lower price in comparison to hotels are making them the default choice with unrestricted access to facilities and amenities provided.

Several small-to mid-sized builders are marketing serviced apartments as an investment opportunity with returns in the range of 9-14 percent per annum. At present, investment in residential properties is more for capital appreciation than rental income.

Annual yield via rental income from a residential property is generally 3-4 percent a year, while capital appreciation is 10-15 percent. Like any property investment, location is important in this case too. Proximity to business centres and good connectivity will lead to higher rental income and capital appreciation. As the quality of service also decides the rental yield, the facility must be managed by a reputed service provider.

If you need our expert advice on service apartments as an investment option, please get in touch.

Investing in Real Estate during festive season


Investing in Real Estate during Festive Season

By Evente Clinic

October marks the beginning of the festive season in India. Considered as an auspicious time for property buying, there is always a surge in demand for real estate during this period.

If homebuyers are confused about the timing of their purchase, their confusion generally ends towards the festive season. According to experts, the festive season is the best time to invest and reportedly, one-third of the property sales that take place in a year are registered during this season.

Naturally, developers leave no stone unturned to stand out in the market to cash in on this positive sentiment. Like every year, this year also developers are betting big on the upcoming festive season to push the sales volume.

With the economy in a bullish mode and office absorption at an all-time high across key metros, it is indeed the right time for buyers to take the plunge.

“October marks the beginning of the festive season in India. Considered as an auspicious time for property buying, there is always a surge in demand for real estate during this period.” 

At present, several leading developers are also offering customer-friendly payment schemes along with a lot of other add-ons. And with the upcoming festive season, there will be an array of options to select from at competitive prices along with great deals and discounts.

Here are a few reasons to buy a home during this festive season:

The market outlook – The overall market outlook is positive. With the finance minister leaving no stone unturned to boost the economy, the results will be seen soon. Our international relationships and business confidence are improving. Thus, there seems to be a strong case for India to continue to be on the path of growth trajectory in the coming years. Thus, as far as the macroeconomy is concerned, it is just the right time to invest.

Buying has become cheaper – it would not be wrong to state that the past few months have made the home buying relatively cheaper. Lowering of interest rates on bank loans has bought the vigour back in the sector. Currently, home loan rates are as low as 8.2%. From the end user’s perspective, it means lower monthly EMIs and lesser interest burden. Banks have introduced new home loan schemes offering flexibility in interest moratorium and principal repayments to bridge the gap between affordability and residential demand.

Festive Offers

Lastly, the country-wide slump in residential sales and liquidity crunch has prompted property developers to introduce aggressive marketing tactics. Developers dole out freebies and discounts around festive periods such as Navratras and Diwali. From modular kitchens to air-conditioners, Apple accessories to international holidays, developers woo the reluctant buyer with these freebies depending upon the ticket size. Construction-linked plans, no EMIs until possession, flash sales and cash discounts are just some of the other incentives available in the market today. The market is flooded with offers and incentives from developers, thus indicating a buyer’s market.

It is an appropriate time to buy but not anything or everything. Here comes the role of due diligence and research. Go for RERA-registered developers with a good track record, opt for the best suitable financial payment plan and buy your dream home.

We hope this festive season brings in all the joy in the lives of our readers.