Mumbai, Jan 14 (UNI) The demand for timeshare products in India is
likely to grow at 16 per cent per annum in the next six years with
supply growth of 12 per cent over the same period, according to a
report on leisure products.
The report, released here today by Group RCI and global real
estate consultants, Cushman & Wakefield, indicates the average unit
sale for a typical timeshare development, which is likely to grow at
three per cent per annum. The average unit cost per day for a
consumer is likely to grow at approximately four per cent per annum
compared to five per cent to eight per cent for a pure hotel
product.
However, with an estimated 41,600 pure product hotel rooms
across major nine 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.
The timeshare industry in India is in its development stage
and comprises of approximately 4,640 timeshare units and 1,46,450
members representing approximately 2,41,330 timeshare weeks. Of this,
the western region in India led by Mumbai, Pune, Ahmedabad, Surat,
holds the largest share of members with 42 per cent of the total,
followed by south (29 per cent), north (23 per cent) and east (six
per cent).
According to Group RCI India Managing Director Radhika Shastry,
”Shared ownership of real estate, where multiple individuals own a
share of a piece of real-estate, offers considerable potential
for developers, operators and financial institutions. These models
of ownership offer increased resilience and buoyancy during
fluctuating market conditions. They provide a strong degree of
insulation to key stakeholders. In response to a desire for a high
quality alternative to a wholly owned second home, without the
associated costs, hassles and responsibilities, sales of fractional
interests of luxury condominiums, townhouses and single family
cottages/ homes have demonstrated a market with considerable
untapped demand in India.”
Various products will emerge, which will be hybrid models of pure
real estate products and transient accommodation models, said
Director of Cushman & Wakefield Hospitality in South Asia Akshay
Kulkarni.
The future of the timeshare and fractional ownership products in
the Indian real estate market is likely to be governed by several
factors, including price appreciation in the resale market, the
degree to which development financing is available in the future ,
the rate at which consumer awareness of the product increases in the
future, the financial success of future projects as well as the
extent of long-term return on investment that each product is able
to generate, particularly in the current economic environment, the
report said.
