DELHI: Studio and serviced apartments have emerged as smart economical investment options in India, as several prominent developers have started offering these in other parts of the country as well. The demand for studio apartments is outstripping the existing supply, generating high rental income, property appreciation and offering opportunities to high-value business tenants. Investors, especially NRIs, believe that investment in studio apartments is a wise and cost-effective decision, as it offers good returns in a short duration.
Some developed countries like Singapore, UAE, Canada, Australia etc. have seen success of studio apartments as many entrepreneurs want to start their businesses’ with limited funds.
The National Capital Region (NCR) has also registered demand for studio apartments as expats, investment bankers, designers, architects, consultants, doctors and chartered accountants, who are setting up private consultancies, prefer to live near their place of work. According to industry trends, the main buyers of studio apartments are young professionals and single workers. With many IT companies, financial institutions and BPOs, now setting up their base in the NCR, the demand has only grown.
The existing and forthcoming landmark infrastructural projects like the adventure park, IT-park (to host 9 IT firms), F1 International Circuit, Yamuna Expressway, FNG Corridor, the proposed cricket stadium and the proposed 102-hectare night safari in and around Noida have helped in generating a significant demand for these studio apartments. If all these projects are implemented as planned, the concept of fully-furnished and serviced studio apartments is here to stay and will be the best economic alternative to 4/5-star hotel accommodation.
Keeping pace with rising demand for multi-use studio apartments in Noida, WAVE City Center has launched “Edenia” which is expected to set a benchmark in India with its world-class consultants, contractors, architects and technology partners on board, coupled with convenient payment plans. The project offers air conditioned studios with commercial licence, which come without any legal or regulatory hassles.
Studio units are also in demand from newly-married couples, especially professionals, who are moving into cost-effective 1BHK flats. The demand is growing not just in the metros but also, surprisingly, in Tier 2 cities where there has been an increase in IT and BPO jobs, which attracts young workforce from across the country.
Research reveals, studio apartments give better rental income compared to traditional housing as they boast several value added features. Hence, studio apartments are good as they are cost-effective, easier to rent out or sell. It is practically the only residential configuration which continued to see demand in the real estate sector.