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Concept of serviced apartments is rising fast in Kormangala
With companies on a fast-track after slowdown rebound, the focus is now on employees’ comfort, while being cost conscious. This has led to a surge in the demand for serviced apartments that offer more value for money than five star hotel rooms. And Koramangala, being an IT hub, now boasts of more than 50 service apartments with an average occupancy of 60 per cent as against 20-30 per cent during slowdown.

High occupacy rate

“Typically, serviced apartments in the city on an average were having an occupancy rate of 70 per cent with room rates of Rs 3,200 – 3,500 per day. The present rates are around Rs3,000 per day with occupancies between 60 and 70 per cent across the city. This is up by about 10-15 per cent increase in rate and upto about 25 per cent in occupancy from the time of recession,” said Akshay Kulkarni — regional director, hospitality, south and southeast Asia — Cushman & Wakefield.

They are commercial real estate brokers and consultants. Being a central point for not only IT professionals, but many prime hospitals, including Manipal and St Johns, these apartments attract tourists from various countries.

“Koramangla is strategically located. Its proximity to EGL, Indiranagar, the elevated road to Electronic City makes it an ideal location for people and companies whose work takes them to different parts of the city,” he adds. The main client base is the corporate, with nearly 50 per cent occupancy.

Concept of serviced apartments is rising fast in Kormangala

Around 25 per cent are people who come for medical treatments and remaining 25 per cent are tourists and people who have come to attend weddings. On an average, guests stay for 5 to 10 days, but inventories are sold on daily basis as well. The rates vary from Rs2,000 to Rs5,000 per day depending on the facilities provided.

The concept of serviced apartment, which is a well-furnished and aesthetically designed accommodation with a small kitchen and AC rooms, housekeeping staff and a wifi connection, came to India in 2004. Many apartments in Kormangala were built when HAL International airport was nearby.

However, shifting of the airport towards north in 2008 has not hit the turnover in any way, as the area started becoming a hub for IT companies. Live-inn service apartment in 6th block was started mainly because the airport was nearby. However, recession gave them a bigger loss than the shift.

“It is a prime location. Within a radius of 5 kms, there are malls and places to hangout for tourists, hospitals for foreign patients and most importantly a lot of IT companies,” said Prabhu A, proprietor, Live-inn. Their current turnover per month is Rs 7-8 lakhs today.

“However, to handle competition, we need to constantly concentrate on marketing,” he added. Chand Basha, a tourist who stayed there recently said, “It is close by to almost all good places of the city, Forum mall, Oasis mall, coffee shops and good restaurants.”