Celebrated as the “Garden City of India” for its widespread scenic greens and termed as the “Silicon City of India” for its accelerating economy scenes, Bangalore is reputed for many reasons that makes it the most happening city in the country. Being the nerve centre of the IT industry in India, Bangalore is the world’s fourth largest technology hub. Population-wise it is the fifth largest city in India. It is abuzz with activities in the field of Manufacturing, Electronics, Mechatronics & Biotechnology, besides the IT sector. All these have led to a phenomenal demand in the hospitality sector to cater to the lodging needs of the business travellers and tourists. On one side, as the demand for accommodation is on the higher side, on the other side there is something new that is steadily challenging the conventional staying schemes of the travellers in Bangalore. It is the rise of the new age Serviced apartments across the city.
What’s so special about these Serviced Apartments?
Serviced apartments are pocket residences built in a manner where a furnished accommodation with a small kitchenette is provided with essential facilities of a household and adequate security for the guest. The tariff is substantially cheaper compared to the luxury hotels that charge phenomenal rates riding on the demand. In the eye of an elated market sentiment in the India that seeks ‘value for money’, Serviced apartments are easily the perfect choice for corporate/individuals seeking ‘smart spending’ stance with cost effective solutions. The demand, for this reason, is steadily on the upper side of the graph.
The rise of Serviced Apartments in Bangalore:
Currently, Bangalore accounts for about 51% of foreign business travelers visiting India/annum. Needless to site the IT/ITES sector folks forming nearly 45-50% of the overall demand for rooms in the city. According to Knight Frank Research Consultancy, since 2004 there has been a slight yet steady shift in the stay demand of Bangalore from a premium segment to budget a segment. This slope owes a lot of significant reasons:
1. Increased Medical tourists in the need of quality, cost-effective staying options on longer runs, find the star hotel too expensive. In local budget rentals, they don’t find the needed essentials in the right place.
2. The ever-increasing expat population, where people need a temporary stay until they relocate permanently to the city, demands more flexibility that is not offered in star hotels.
3. Corporate travels today are unplanned these days and demand extended stays until the projects are completed, which necessitates both comfort and cost in the right balance.
Average Room Rent in premium category hotels in Bangalore has recorded a growth of 20 per cent over the last decade. Such many critical factors have profoundly seeded the rise of the serviced apartments in the busy Bangalore city.
Corporate gets candid:
“I work in Cognizant Technology Solutions, Coimbatore. Being a part of the Academy segment, I had to constantly travel to Bangalore for training programs and conferences. Though sponsored by the company, I found the business stays to be extremely expensive and hectic when it came to distant locations that I had to travel through. Needless to say the traffic one is faced with these days. Of late, we have been inducted into cool boutique studio rooms in the Serviced Apartments that are far better than the luxury hotels in terms of price and flexibility. I mean you get all the amenities in an amicable price and cozy environment. What more can one ask for? It’s a great way out for the company too, to save so much costs with the increasing travel expenses it handles” said Sindhu, a Learning Executive in CTS reflecting the market mood.
From an Entrepreneurial perspective:
And that’s not it. It is a green patch to see from an investment perspective too. The government of Karnataka aims to encourage public-private partnership for developing tourism infrastructure and promotes Bangalore as a destination for MICE (Meetings, Incentives, Conferences and Exhibitions). This greatly lures the prospective investors to raise smart serviced apartments that are on demand today. Thus, based on current macro-economic trends, emotional edge & the business outlook, Bangalore will continue to witness a rising trend in the Serviced Apartment sector. And for sure, all for goodness!