To give you a brief answer, serviced apartments are fully furnished apartments; they are available for both short-duration and long-duration stays. Plus, most serviced apartments provide amenities for daily use like Washing Machine, TV, WiFi, Lighting, Air-conditioning, Microwaves, Gas Stove and Connection, etc. all included within the rental price.
What you can expect from a serviced apartment:
- A kitchen with all necessary appliances and utensils
- One or more separate bedrooms and bathrooms
- All area furnished
- All utilities included i.e. water & electricity
- A weekly or monthly housekeeping service
How do Service Apartments Work?
Source:https://www.hotel-online.com/
Individuals, as well as companies, own and rent regular apartments and convert them into service apartments. It’s a profitable business in areas where working professionals look for furnished homes to stay.
Corporates also tie-up with serviced apartments so their employees can stay there on official visits. It is quite common for off-location engineers and executives to stay in serviced apartments temporarily while searching for a permanent residence or relocation.
Now, you might be thinking: serviced apartments sound a lot like hotels. But no! Serviced apartments and hotels are actually two very different things. Look at the following points to understand:
Difference Between Serviced Apartments and Hotels
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Space in serviced apartments is a lot more than a hotel room
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Serviced apartments offer kitchen whereas hotels do not
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Serviced apartments come with the couch, almirah, beds, racks, utensils etc. Whereas hotels cover only the basics (5-Stars hotels not included)
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Stay in serviced apartments can be extended for months but that’s highly unlikely in hotels
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Rental cost is a lot less in serviced apartments as compared to hotels
- Serviced apartments are usually in residential complexes whereas hotels have typical locations
Furthermore, there is a lot of difference between serviced apartments and regular flats also. Apart from furnishing, the reason for occupancy, duration and cost varies in both. Serviced apartments are cheaper than hotel rooms but a lot costlier than regular flats.
By now, you understood what is a serviced apartment? How does it work and what are the differences between serviced apartments and hotels / regular apartments. With the above information, you can decide whether you want to occupy one or not. But what about investment? Are serviced apartments a good investment? Let’s find out…
Are Serviced Apartments a Good Investment?
Source:https://www.booking.com/
Of course, they are! There is no dichotomy. Companies like Nestaway, Zolo Stays, Oyo Life are printing huge profits by their serviced apartments across India. Look at the advantages, why they offer great value:
Serviced apartments are comfortable and affordable than hotel rooms. They offer ample space to accommodate more people than in a hotel room and store everything you need.
The freedom to cook meals and privacy comes in-built with almost every service apartment. That’s why individuals and corporates prefer them over hotels. And that’s how you can earn profits by leasing or owning one or more serviced apartments.
In addition, individuals and families shifting to a new city prefer serviced apartments for sheer comfort. Bing and carrying furniture is a burden one needs to bear while moving to a new place, that’s why millennials prefer furniture renting services and service apartments over regular homes.
More and more real estate developers in India and abroad are realising the potential of serviced apartments because an investment in serviced apartments is now seen as a great idea for earning high rental incomes.
Related Post - Advantages and Disadvantages of Investing in Real Estate
At The Bottom
People move to different cities either for work or pleasure but finding suitable accommodation for short or extended stays at affordable rates, become a concern for many. Not only individuals switching cities, but even corporates also bear the enormous costs associated with extended hotel stays. Besides, opting for a rented apartment may involve long-term obligations.
On the other hand, serviced apartments are a viable option who seek, comfort at a nominal price. They are becoming the most sought-after housing option compared to rented or fully-furnished apartments or even hotel rooms.
With the increasing number of corporate dwellers, especially in major metro cities such as Delhi, Mumbai, Pune, Bangalore, Chennai and Hyderabad, serviced apartments are seeing exponential growth.
So if you are looking for a housing option for investment, check out Kohinoor residential projects in Pune. Covering central neighbourhoods of Pune, Kohinoor residential projects are one of the most obvious choices among homebuyers in Pune.
Visit www.kohinoorpune.com for more information.
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