Popular Realty Investment - Service Apartments in Goa.

Goa is at the cross roads of the real estate investment. In spite of slow down in realty development due to raising cost of land as well as the building materials, selective well  established developers are introducing new projects in the market. The majority of the buyers being NRI's, Mumbai, Delhi, Hyderabad, Bangalore based investors or home seekers.  Hardly any Goans. Most of the 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% a year and capital appreciation is some where between 10-15%.

Little background about Service Apartments. 

A serviced apartment is a furnished accommodation with a small kitchen and rooms generally more spacious than in a hotel. It also has modern communication facilities such as Wifi internet, telephone, HD, LED television, modern Cooking utensils, microwave, Refrigerator, washing machine etc. Some also offer conference rooms, besides housekeeping staff and a concierge service. The concept of serviced apartments arrived in India during 2003-04.  Metropolitan cities, Mumbai, Delhi, Bangalore, Chennai and Calcutta groomed  this trend that has now extended their presence to smaller cities like, Pune, Goa, Coimbatore, Kochi  etc. Cities driven by IT, PHARMA, and Commercial activities have a huge potential for service apartments.

Although Goa is a tourist destination,  over the years, there  has been a sharp surge in  commercial, medical and educational travel in Goa. Business Executives from other parts of India and abroad frequently travel to Goa and spend weeks and sometime months. There are several manufacturing units in prominent Industrial estates, whereby the owners live outside Goa and visit their factories in Goa during few days in a month from different locations. Similarly several public as well as private banks have opened their branches in Goa and their superiors travel frequently to Goa and their stay extends beyond three to four days. These are the people who prefer to stay at Service apartments.  

Staying at hotels for a long periods is costly. Serviced apartments offer an alternative. Plus the other advantage is that,  in a hotel you are in a squeezed room.  In a service apartment, you have an entire apartment at your disposal and they are spacious. The main client base is the corporate sector. The demand is primarily driven by executives of multinational companies and expatriates who come to Goa on deputation for periods ranging from weeks to months. 

Various renowned hotel chains have ventured in to service apartments to lower their operating costs and reduce the staff to guest ratio. In Delhi, Mumbai and Bangalore, international brands have developed serviced apartments catering largely to the corporate sector. But so far these brands have not yet come out with similar concept or project in Goa.

The most popular investment in realty today is serviced apartments. This particular investment opportunity gives the  returns in the range of 9-14% per annum. In Goa,  Serviced apartments can become a popular option for generating higher rental income from value-added services when professional property management companies start offering services and finding guests.

As Goa's  economy improves and IT, PHARMA related industries expands, the demand for serviced apartments will increase along with the floating population. The concept will grow and has a huge business potential.  Like any other 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. In the service apartment sector the quality of service also decides the rental yield.  In the northern coastal belt  some individuals who let out their houses to tourists as serviced apartments manage it themselves. It is important that the facility is managed by a reputed service provider. In Goa there is a lack of professional service companies that run and manage serviced apartments owned by individuals. Identifying this gap, recently, few outfits have mushroomed around Panjim, Porvorim area started by ex employees of the star  hotels or resorts.  None being specialized or termed as Service Apartment Management expert.

We have developed an unique property at Porvorim, to fulfill the need of the corporate clients.  Urba Luxury is located in the peaceful neighborhood of Nova Cidade Porvorim, opposite Jnan Vikas School and is in close proximity to fast-food joints (Dominos, Baskin Robbins, Coffee Cafe Day), restaurants, ATMs, clinics and hospitals. It is 15 minutes away from Goa's popular beaches (Calangute, Baga, Anjuna, Vagator) and 4 kms away from the capital of Goa (Panaji) and its famous river cruises, casinos and Old Goa Churches.                                            

Out parent company, Prism Impex Pvt. Ltd indulges into consultancy projects for setting up Service Apartment Projects in Goa. If at all, you are planning to invest in real estate, it may be a good idea to invest  in serviced apartments for better returns than what residential apartments can give.