When US-settled NRI Kumar Padmanabha had to make a prolonged visit to Gurgaon to set up the base for Air Liquide, he shunned the cosmetic luxury of five-star hotels to settle for the private environs of a comparatively modest live-in apartment that was serviced with all the amenities of a hotel. Likewise, British national Christine Jackson, who works as procurement manager for a UK-based consultancy, Crown Agents, stayed at a Delhi five-star for a month, and then decided to try out a service apartment. Now she says that was the best decision she ever took.

Senior-level executives from MNCs such as Nestle, Gillette and ITC are some of the big corporate names patronising the Avalon Service Apartments in Gurgaon. Avalon was Delhi's introduction to service apartments in 1998. But now Mumbai too has its share. Lakeside Chalet, which is managed by the well-known Mariott International, opened this July at Powai in North Mumbai and already boasts of such corporate giants as Colgate-Palmolive, Bayer India, German engineering firm UHDE and STAR TV among its frequent users.

Incredible as it seems, service apartments are favoured by government officials and ministers too, says Mr Anthony Cruz, coordinator of the Avalon Service Apartments, which perches on the Gurgaon-Mehrauli Road. Mr Cruz cites the case of a state minister, a retired chief justice and a prominent upcoming politician as cases in point.

In fact, spurred by the rising demand for global standard residential options, real estate multinational consultancy firm Jones Lang LaSalle has prepared a research paper that points out that service apartments are an emerging investment market in India. Expatriates overseeing project set-ups, corporate travellers, tourists and other segments seeking high-quality temporary accommodation pose an increased demand, notes the report.

Even though the concept has not caught on in the same way as it has in Europe, Australia or America, where you have a range of such apartments available, its popularity, especially for short rentals extending over a few months, is certainly on the rise in India.

Take the case of Avalon. Till two years ago, it was reporting occupancy levels as low as 30 per cent. Today, it's two-thirds booked all the time.

"With customers booking up space much in advance so often, we also have periods when we are 100 per cent booked," says Mr Cruz. Mombasa based ENT specialist Dr K S Dang booked two service apartments for the month of February 2001 about a year ago.

Not that the service apartments come cheap. A day's stay can set you back by $89-189. But they are popular because they "offer cheaper, personalised five-star living space". A suite in a five-star hotel costs in the region of $500 (Rs 10,000-23,000) for a day. Plus, service apartments offer a customised option. You can walk into an apartment and find a complete house waiting for you to take over. The refrigerator will be stocked with your choicest goodies, the kitchen shelves with all the pots and pans and crockery you need for a family of four and other such dire necessities as telephones, television sets, ironing boards and even hair dryers.

Even better, you don't have to worry about looking after the apartment. Services such as house-keeping, car rentals and even laundry are also on offer. You can even get a party organised for you. There are recreational options too: swimming pool, gymnasium and pool parlour. If the apartment block itself does not contain these facilities, there's usually a tie-up with a nearby club. Avalon, for example, has a tie-up with the Executive Club.

The Jones Lang LaSalle report cites Delhi and Mumbai as the two most ideal locations for setting up service apartments because of the otherwise lengthy transactions that are necessary to lease a flat and maintain it in these cities. Mumbai particularly demands huge security deposits. That explains why newer and established players are getting into the act in these cities.

French chain Hotel Accor is going to manage a service apartment block at the Royal Palm Golf Course in Mumbai's Goregaon. The newly-opened Grand Hyatt too had similar plans to open a wing of service apartments in its Delhi hotel, but had to shelve the idea for reasons it will not divulge. The hotel spokesperson, however, indicates that it is going ahead with its service apartment project in Mumbai.