Serviced Apartment Market Size to Hit USD 420.89 Bn by 2034

Serviced Apartment Market Key Takeaways

• North America secured the highest share in the serviced apartment market with 38% in 2023.

• Europe is expected to grow at a strong double-digit CAGR of 12.32% during the forecast timeframe.

• The short-term stay segment (<30 nights) dominated the market with a 66% share in 2023.

• The long-term stay segment (>30 nights) is anticipated to experience the fastest growth with a CAGR of 13.94%.

• The corporate/business traveler category accounted for the majority of the market at 53% in 2023.

• A notable CAGR of 14.25% is predicted for the expats and relocators segment throughout the forecast period.

• Direct bookings contributed the largest portion of the market at 49% in 2023.

• The corporate contracts segment is on track to grow rapidly, boasting a CAGR of 14.22% during the forecast span.

Market Overview

Serviced apartments have emerged as a modern solution for travelers who value autonomy, comfort, and flexibility. The market saw North America dominate in 2023, securing 38% of the share, while Europe and Asia are catching up with rapidly growing demand. With travelers becoming more experience-focused and cost-conscious, serviced apartments bridge the gap between hotels and private rentals by offering both affordability and upscale services.

Drivers

The acceleration of global mobility, particularly for work-related travel, has been a core driver of serviced apartment growth. As companies seek more adaptable housing solutions for employees, serviced apartments are stepping in with tailored offerings. Remote workers and digital nomads are also shaping market trends, demanding flexible and long-term stay options equipped with workspaces, kitchens, and smart home technology.

Opportunities

Technological advancement has transformed the guest experience, allowing for seamless check-ins, remote concierge services, and personalized stay packages. There is also growing potential in family-friendly offerings and hybrid work accommodations. Direct-to-consumer booking strategies are proving successful, especially when paired with loyalty programs and digital platforms that cater to younger demographics.

Challenges

Despite favorable market conditions, challenges persist. Navigating zoning laws and hospitality regulations can be a deterrent for new entrants. Additionally, guest expectations continue to evolve, requiring frequent upgrades to amenities, digital infrastructure, and customer support. Competition from online short-term rental marketplaces also poses a threat to occupancy rates and brand visibility.

Regional Insights

North America held the lead in 2023, driven by demand from business travelers and relocators. Europe’s growth trajectory is strong, with a 12.32% CAGR forecasted, thanks to the rise of pan-European business travel and increasing urban connectivity. The Asia Pacific region is fast emerging as a lucrative market, with rising international tourism and corporate expansion contributing to robust demand for short- and long-term stays.

Recent 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.