The demand for timeshare products in India is likely to grow at approximately 16% per annum from 2006 to 2015, facilitated by supply growth of approximately 12% per annum over the same period according to a report released by Group RCI and global real estate consultants, Cushman & Wakefield.
The report indicates the average unit sale for a typical timeshare development which is likely to grow at 3% per annum from 2006 to 2015. The average unit cost per day for a consumer is likely to grow at approximately 4% per annum from 2006 to 2015, compared to approximately 5% to 8% for a pure hotel product. However, with an estimated 41,600 pure product hotel rooms across major 9 cities that will be furnished over the next four to five years, the markets are likely to see a drop in occupancy rates and rationalization of average room rates in the long term.
Akshay Kulkarni, Director of Cushman & Wakefield Hospitality in South Asia says, “Over the last few years we have seen a keen interest as people had a growth in disposable income and saw value in investing in these alternative assets. With changing economic conditions the focus will shift from profitability to sustainability. Various products will emerge, which will be hybrid models of pure real estate products and transient accommodation models. This will allow end users to not just physically use their investments but also see some appreciation in values over a period of time.”
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Tags: Cushman and Wakefield, Indian hotels, property in India, timeshare property
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