Serviced Apartments Market Size, Share

SERVICED APARTMENTS MARKET OVERVIEW

The global Serviced Apartments Market size was valued approximately USD 34.46 Billion in 2024 and will touch USD 65.55 Billion by 2033, growing at a compound annual growth rate (CAGR) of 7.41% from 2024 to 2033.

Serviced apartments are fully furnished with hotel services but give people more space and privacy. They're great for short or long stays, especially for biz travelers, tourists, or anyone needing temp housing. They come with kitchens, living areas, bathrooms, Wi-Fi, and housekeeping. Unlike hotels, they feel more like home, making them perfect for longer stays. They're often cheaper and more comfortable than regular hotels.

COVID-19 IMPACT

“Increased Demand for Longer Stays”

COVID-19 has changed how people travel, with many choosing longer stays in serviced apartments. Lockdowns and remote work have made people want flexible, comfy spaces with privacy, kitchens, and home offices. Now, serviced apartments are seen as a good long-term option, especially for those isolating, working from home, or seeking safer stays than hotels.

LATEST TREND

”Technology-Driven Customer Experience”

Serviced apartments are using tech to make stays better. Smart home gadgets like voice helpers and keyless doors make things easier. Online booking and apps are getting smarter, giving guests quick access to services, updates, and even virtual apartment tours. Tech solutions help meet the growing need for convenience and personal touches.

SERVICED APARTMENTS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Long-Term (>30 Nights) and Short-Term (<30 Nights).

Long-Term Serviced Apartments (>30 Nights): Long-term serviced apartments are for stays longer than 30 nights and are popular with biz travelers, expats, or those needing temp housing. They have more space and home-like stuff like kitchens and laundry, and often give discounts for longer stays. Demand is up, especially in big cities where workers and pros need flexible housing. With remote work on the rise, there's more demand for cozy, long-term places to stay. This market is growing, especially in areas with lots of expats and biz activity, as long stays bring in steady income for providers.
Short-Term Serviced Apartments (<30 Nights): Short-term serviced apartments are for stays less than 30 nights and are often used by tourists, biz travelers on quick trips, or those needing temp housing. They're flexible, fully furnished, and have hotel-like perks but often cost less. They're popular in tourist spots, big cities, and biz event areas. After COVID-19, the demand for short-term rentals has gone up because travelers want more privacy and freedom than hotels. This market is tough, with all kinds of customers like tourists and solo travelers. Platforms like Airbnb are making serviced apartments more popular, bringing big growth chances.

By Application

Based on application, the global market can be categorized into Corporate/Business Traveler, Leisure Traveler and Expats and Relocators.

Corporate/Business Traveler: Business travelers love working from serviced apartments because they get more room to move around, some privacy, and cool perks like kitchens and workspaces. These apartments are becoming more popular as business travel and remote work are on the rise. Business people love the convenience of these apartments so they can get work done while they're away, while still feeling at home.
Leisure Traveler: Leisure travelers often stay in serviced apartments during vacations or short trips, especially in tourist areas. They’re affordable, flexible, and offer more space than hotels. These apartments are ideal for families or groups, with home-like features like kitchens and living rooms. Since COVID, demand has grown as travelers seek more privacy and freedom.
Expats and Relocators: Expats and people moving to a new city often choose serviced apartments because they’re fully furnished and offer a hassle-free living experience, including cleaning and maintenance services. As more people relocate for work or personal reasons, the demand for serviced apartments in big cities is rising. Expats and relocators enjoy the comfort and flexibility these apartments provide, which is why this segment is growing steadily.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Rising Demand for Flexible Living Arrangements”

People are diggin' flexible and convenient living setups more and more, and that's fueling the serviced apartments market. With remote work on the rise, folks are looking for places with homey perks and more space than hotels. Serviced apartments hit that spot – they give people long stays with the freedom of a home and the perks of hotel services. This trend is huge with biz travelers, expats, and digital nomads who want to be comfy and independent while they're away.

Restraining Factor

”High Operational Costs”

A major restraining factor for serviced apartments is the high price tag to keep them up and running. Unlike regular hotels, they need constant maintenance, cleaning, and management to stay in tip-top shape for long stays. All those costs, like utilities, housekeeping, and paying the staff, can really add up, especially in hotspots. This puts financial pressure on property owners and operators, making it harder to expand or offer competitive prices.

Opportunity

”Rise of Digital Platforms and Online Booking”

With online travel agencies (OTAs) and platforms like Airbnb popping up everywhere, serviced apartments have become a lot more visible and easier to book. These platforms help serviced apartment owners reach a bigger crowd, especially the younger, tech-loving travelers who dig convenience and easy booking. Since more folks are using these digital platforms to find a place to stay, serviced apartments are getting more exposure and bookings.

Challenge

”Intense Competition in Popular Markets”

The serviced apartments market is really competitive, especially in popular cities where lots of people want to stay. With so many tourists, business people, and expats around, these apartments have to compete with hotels, vacation rentals, and Airbnb. This tough competition can force prices down, making it hard for providers to make money and stand out. To stay ahead, operators need to offer something special, like great service, unique stuff, or flexible prices.

SERVICED APARTMENTS MARKET REGIONAL INSIGHTS

North America

In North America, serviced apartments are really popular in big cities like New York, Los Angeles, Toronto, and Vancouver. People like business travelers, expats, and long-term tourists love them. Remote work and digital nomads also boost this market because they want cozy places to stay for longer. High-quality apartments with modern stuff and good prices make them a great hotel alternative. But, they face high costs and tough competition from hotels and Airbnb. Plus, high real estate prices and rules in these cities can limit how much they can grow in some spots.

Europe

Europe's serviced apartments market is growing fast, thanks to business and leisure travelers. Cities like London, Paris, Frankfurt, and Amsterdam see lots of short and long stays. Corporate moves, expats, and bleisure trips (mixing business with pleasure) help boost demand. Many apartments are luxury, with top-notch stuff and personal services. Competition is tough, with big hotel brands and new players fighting for customers. But, operators face challenges like eco-friendly demands and strict rules in some countries. Plus, online booking sites and vacation rentals like Airbnb make it even more competitive.

Asia

Asia, especially East Asia, is booming in the serviced apartments market, with China, Japan, South Korea, Singapore, and India leading the way. Business people, expats, and big companies looking for flexible housing are the main drivers. Cities like Shanghai, Hong Kong, Tokyo, and Singapore are hotspots. They attract tourists, digital nomads, and professionals on long-term jobs. Rising incomes, fast urban growth, and a love for convenience and flexibility are helping the market grow. Luxury apartments are also popular in cities with lots of international business. But, there are challenges too, like high costs, rules, and tough competition from local and international hotel brands, traditional hotels, and short-term rentals.

KEY INDUSTRY PLAYERS

”Competitive Boom Driven by Innovation and Eco-Friendly Trends”

The serviced apartments market is super competitive, with lots of players worldwide. They stand out by offering good amenities, flexible booking, and being in great spots for business or tourism. With people wanting more eco-friendly stays, businesses are focusing on green services. Digital platforms and online travel sites are key for bookings, making competition fierce. Plus, places like Airbnb are making serviced apartments work harder to innovate and add value to stay ahead.

List of Top Serviced Apartments Companies

The Ascott Limited
The Serviced Apartment Company
Frasers Hospitality
Staycity Ltd
Habicus Group

KEY INDUSTRY DEVELOPMENTS

In April 2024, Ascott Limited, a Singapore-based hospitality company also known as the wholly owned lodging business unit of CapitaLand Investment Limited, launched the first serviced apartments in Gurugram in North India in partnering with local real estate developer Paras Buildtech.

In November 2024, OSK Property Holdings Bhd, a subsidiary of OSK Holdings Bhd, launched the Nara, the serviced apartment project under the 27.77-acre (11.24-hectare) Shorea Park master plan in Puchong.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The serviced apartments market is growing because people want flexible stays, especially biz travelers, expats, and long-term tourists. With more urbanization and global travel, folks want home-like perks like kitchens, laundry, and privacy. Plus, serviced apartments are cheaper than hotels for long stays in big cities. Remote work and digital nomads also love them for stable, cozy housing.

Looking ahead, the serviced apartments market will keep growing. Sustainability and flexible living are big trends. Emerging markets and areas with growing economies have big potential. Tech like smart homes and digital booking platforms will become more important. But, competition will heat up, so providers need to offer personal touches and keep quality high to stay ahead.