Holiday Rentals in 2025: Rise of the Service Apartment in Mumbai


In 2025, the hotel industry of Mumbai is experiencing a distinct drift. People are avoiding conventional hotels and opting for PAJASA service apartments for their short and extended vacation stays. The trend is becoming increasingly apparent each month. Though hotels continue to be the destination of choice for business and leisure tourists, service apartments are fast becoming the preferred choice because they offer convenience, privacy, and improved value for money.

What Are Service Apartments?

A service apartment is a fully equipped apartment that can be used for both temporary and permanent stays. It has hotel-type services like housekeeping, linen replacement, security, and utilities. It differs from hotels in that it has a kitchen, washing machine, sitting room, and even more than one bedroom. These apartments are found in residential or mixed-use neighbourhoods in cities such as Mumbai, with the stay experience being the same as being in the city.

Shifting Choices in 2025

Most visitors to Mumbai today prefer accommodations that are like home. This encompasses tourists, corporate professionals, medical tourists, students, and even foreign visitors. No longer are they seeking just a place to sleep in. They wish for room to cook, unwind, work, and spend time with family or friends without the encumbrances of hotel rooms.

In 2025, the majority of the holiday rental guests are either travelling in groups or for periods over five days. For these travellers, service apartments offer the convenience of self-cooking, self-washing, and self-pacing. Self-reliance is becoming a significant consideration in deciding where to stay in Mumbai.

Key Areas in Mumbai for Service Apartments

Mumbai is dotted with localities where travellers prefer staying in service apartments. Some of the most sought-after locations are:

·        Bandra: Famous for shopping, cafes, and accessibility to western suburbs as well as South Mumbai.

·        Andheri East & West: Near the airport and business parks. Suitable for business travellers and families.

·        Powai: Well-planned, with parks, lakefronts, and numerous corporate offices in the vicinity.

·        Colaba and Fort: Preferred by tourists who prefer to reside close to the Gateway of India, museums, and heritage areas.

·        Lower Parel and Worli: These regions have trendy high-rise residential apartments and are favoured by luxury travellers and business guests.

The Role of Digital Platforms

The proliferation of service apartments is also due to the surge in online booking portals. Internet sites and mobile apps such as Airbnb, Booking.com, MakeMyTrip, and local real estate websites now make it easy for people to reserve service apartments with the same facilities as reserving a hotel room.

These websites offer photos, reviews, and transparent cancellation policies. In 2025, most of them will also have special services such as weekly house cleaning, airport pick-up, and meal plans in association with local vendors. This has made service apartments a reliable choice for travellers.

Who's Renting These Apartments?

In Mumbai, the guest profile for service apartments is a mix of many. Some of the most frequent types of guests are:

1. Domestic Tourists

Families from metro cities such as Delhi, Bangalore, Chennai, and Hyderabad tend to prefer service apartments to accommodate bigger groups. Rather than taking two or three hotel rooms, they reserve one 2BHK or 3BHK apartment for accommodation.

2. Foreign Travellers

International travellers visiting for business, tourist purposes, or medical tourism favour these apartments due to their in-house kitchen facilities and financial economy. They stay for one week or months.

3. NRIs Visiting Relatives

NRIs travelling to Mumbai for vacations or family events also prefer to stay in service apartments to prevent overcrowding at their relatives' homes.

4. Medical Tourists

Since Mumbai has numerous top hospitals like Kokilaben, Lilavati, and Jaslok, individuals travelling for treatment tend to prefer apartments near the hospitals for longer periods.

5. Corporate Employees

When firms send employees to train or work on short projects in Mumbai, they reserve service apartments rather than extended periods of hotel stay, which may be costly.

Cost Benefits for Travellers

One of the reasons why service apartments are becoming popular in 2025 is the cost advantage overall. A 3-star hotel room in Mumbai would cost between ₹4,000 to ₹6,000 per night. On the other hand, a service apartment with one bedroom, hall, kitchen, and all utilities provided can be rented for ₹3,000 to ₹5,000 per night for two or more individuals. It is cost-effective, particularly for families and groups.

In extended visits, savings are greater. Service apartments usually have cut-down weekly or monthly deals. Guests not only save on lodging, but also on dining and laundry.

Facilities That Count

Service apartments in Mumbai in 2025 provide all the essentials and a lot of advanced amenities that today's travellers expect:

·        Kitchen well equipped with stove, microwave, and utensils

·        Washing machine and drying space

·        Wi-Fi and smart TV

·        Housekeeping (every 2 or 3 days or on request)

·        Security and support 24/7

·        Access to parking (in certain properties)

·        Air conditioning with backup power

·        Access to fitness centres or swimming pools in large societies

Guests today expect openness about facilities, and appreciation for this has made listing sites even more verbose in their descriptions.

Advantages Over Hotels

There are several reasons why travellers in 2025 are opting for service apartments compared to hotels in Mumbai:

1.      More Space: A hotel room is typically one room. A service apartment has several rooms.

2.      Kitchen Facility: Visitors can prepare their food, which cannot be done in hotels.

3.      Laundry Access: Clothes can be washed easily and without a fee.

4.      Cost-Effective: Particularly for extended stays and groups.

5.      No Restrictions: Visitors can arrive and leave freely without limitations on guests or meal times.

Challenges Still Faced

Though the demand is increasing, the service apartment market also has some issues in Mumbai:

·        Not all establishments are registered or regulated.

·        Some apartments do not have standard safety inspections or hospitality training.

·        Quality is highly inconsistent between buildings.

·        There are instances of cancellations of bookings and refund disputes.

But in 2025, most service apartment businesses are enhancing their services to satisfy customers. More professional players have joined the market, introducing improved control of service standards.

Trends to Watch in 2025

A few new trends are redefining the service apartment landscape in Mumbai this year:

·        Subscription Stays: Websites providing flexible month-on-month stays.

·        Co-Living and Hybrid Models: A few apartments provide shared areas with private rooms.

·        Pet-Friendly Apartments: Growing demand from pet owners.

·        Eco-Friendly Apartments: Solar power, waste segregation, and green ratings are picking up.

·        Apartment Aggregators: New brands operating 20–100 service apartments under a single name for improved consistency.

Government and Regulations

In 2025, the government of Maharashtra is also developing more definitive rules to license and regulate service apartments in Mumbai. This move will safeguard both the owners of the property and the guests. The policies are likely to make the market more structured.

Future of Holiday Rentals in Mumbai

As more travellers seek practical, flexible, and economical stays, the market for service apartments is likely to increase further. With enhanced infrastructure, smarter technology, and enhanced services, Mumbai's service apartment market is progressing towards maturity.

Customers are no longer seeking just a bed to sleep in. They expect a home where they can cook, relax, work, entertain friends, and live like a local on their vacation.

Conclusion

In 2025, Mumbai’s holiday rental scene is undergoing a visible shift. The rise of service apartments in Andheri, Mumbai, is not just a trend but a response to the real needs of modern travellers. From cost savings to home-like comfort, from better privacy to convenient facilities, service apartments are meeting demands that hotels sometimes cannot. With the backing of technology, improved management, and changing tourist patterns, these rentals can be expected to have a much more significant role in the future of tourism and travel in Mumbai.

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