News & Views on Indian Real Estate

Thursday, July 03, 2008

Real estate cos diversify into spas and resorts

Analysts say that despite existing demand, spas and resorts would be viable only in larger developments. A Swedish massage, a vigorous Kerala head rub or good old steam bath developers are offering all this and more at picture perfect destinations that are a good trek away from cities.After making luxury villas and apartments in the heart of town, property firms are now wooing people to exotic spas and resorts.From luxury to leisure, real estate companies such as Brigade group, Omaxe Ltd, Prestige group, Sobha Developers Ltd and Value Designbuild Pvt. Ltd, are entering into the leisure segment to build health resorts and spas in the backwaters of Kerala or amid the plantations of Chikmagalur in Karnataka. A lot of developers are looking at spas and resorts because it is revenue generating business line, says Akshay Kulkarni, Cushman and Wakefield Inc.’s, a property consulting firm. Residential developers normally develop, construct and exit a project. A residential asset does not generate consistent revenues whereas spas and resorts do. Dedicated real estate funds are eager to support such venspa and resort ventures. Developers agree there is a demand for such high-end products, and are looking at different locales in India.