Serviced Apartments Market Size, Share, Growth, and Industry Analysis, By Type (On-Site Managed, Off-Site Managed), By Application (Corporate, Leisure) and Regional Forecast to 2033

SERVICED APARTMENTS MARKET OVERVIEW

The global Serviced Apartments Market size is USD 26.37 billion in 2025 and is projected to touch USD 54.09 million in 2033, exhibiting a CAGR of 8.31% during the forecast period.

Serviced apartments market has become an innovative industry as a branch out of the hospitality industry and brings together a combination of the comfort of home with the facilities found in a hotel. The serviced apartments are created on a short-term basis and long-term basics and are fully furnished including kitchen facilities, housekeeping and in some cases, leisure and business facilities on the site. These facilities are useful to tourists and also to a large number of travellers; they include business people, expatriates, families that are relocating, who want to be more flexible and families to have space as compared to the hotels. With urbanization growing faster and global mobility on a sharp rise, the need of such multipurpose living spaces has been on a steady rise all over the major metropolitan cities across the world.

The trend toward remote work, remote-based nomadic lifestyles, and long-term business travel has also increased the market because it necessitates affordable quality accommodation facilities. Serviced apartments have high levels of privacy and convenience as well as good value particularly when on a long term location. Technology-based services that operators are embracing include keyless entry, use of mobile apps to request services as well as automated inquiry into rooms to improve customer experience. As more real estate developers and hospitality brands keep making their investments on the serviced apartments, and consumers become more aware, the sector is ready to expand further, especially in Asia-Pacific, Europe, and even North America.

Key Findings

• Market Size and Growth: The global Serviced Apartments Market size is USD 26.37 billion in 2025 and is projected to touch USD 54.09 million in 2033, exhibiting a CAGR of 8.31% during the forecast period.

• Key Market Trends: Studio and one-bedroom serviced apartment bookings surged by 20–40% in early 2025 in cities like New York and London due to return-to-office mandates.

• Key Market Drivers: Over 80% of global business travel bookings now include extended-stay options, fueling demand for flexible accommodation like serviced apartments.

• Technological Advancements: More than 65% of serviced apartment operators have adopted mobile check-in, digital keys, and smart home integrations by mid-2025.

• Regional Growth: Asia-Pacific leads with over 35% of global new serviced apartment openings in 2024, led by growth in India, China, and Singapore.

• Type Segmentation: On-site managed units make up over 60% of urban serviced apartment inventory due to their popularity with corporate clients seeking full-service options.

• Application Segmentation: Business travel accounts for approximately 55% of serviced apartment occupancy globally, driven by long-stay assignments and corporate relocations.

• Key Players: The Ascott Limited manages over 940 properties in more than 200 cities, while Frasers Hospitality and Oakwood operate hundreds of units across Asia, Europe, and the Americas.

US TARIFF IMPACT

"Serviced Apartments Market Industry had a Negative Effect Due to supply chain disruption "

The US tariff has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-2025. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand.

A recent tariff on steel, aluminium, lumber, furniture, fixtures, and equipment (FF&E) by the US government has sent the cost of construction and refurbishing of serviced apartments to all-time-highs. Steel and aluminium tariffs are now pegged at 25-50%, and there is a leaping of lumber tariffs particularly due to Canada and this has heralded a skyrocket in structural and finishing costs. Long lead times, complicated supply chains, and either a necessity to source locally or hoard materials are placing increased burden on manufacturers and developers who must understand how project lead time will increase and the budget will be uncertain. All these escalating capital expenditure are encouraging some operators to postpone expansion, increase the rents or cut back on the extent of amenities. In addition, the increasing costs of operations, that is, increased imports of food and drinks, puts extra pressure on service quality and prices. The general economic knock on effect of inflation and high interest rates also damages on corporate travel and relocation demand, which are major sources of serviced apartment occupancy. Smart operators are turning to supplier contracts with built-in tariffs adjustment clauses, switching to domestic sourcing and pursuing cost sharing options to help them keep their margins intact and stay competitive in the market.

LATEST TRENDS

"Return-to-Office Mandates to Fuel Market Growth"

Serviced apartments industry has one of the latest and most impactful factors that is the resurrection of the so-called ST-5 return to office received the mandates by large products-based employers worldwide, also known as RTO5, and requiring workers to stay on-site 5 days a week. Companies such as JPMorgan Chase, Goldman Sachs, Amazon, as well as other companies, have introduced these policies at the beginning of the year 2025, which encouraged employees forced to move to the suburbs during the pandemic to rent pied-a-terre-type managed apartments closer to their offices in cities. New York, London and Miami real estate agents said inquiries and reservations of studio and one bedroom apartments designed to attract business men and women requiring a place to stay for the week have soared by 20-40%. The result of this increase is the changing of demand patterns whereby, providers have responded with shorter stays that offer hybrid experiences, adaptable leasing, and flexible work-ready facilities that include a dedicated desk, solid Wi-Fi, and a convenient location on the business area. This trend is being exploited by shrewd operators who are offering apartments as places of work and a base of productivity, a home environment they can mix with hotel giving it a great appeal. As RTO policies are coming to the fore, the popularity of serviced apartments as a conveniently located and priced place to stay as an alternative to home is rapidly increasing in major metropolitan environments, increasing occupancy and premium pricing.

SERVICED APARTMENTS MARKET SEGMENTATION

BASED ON TYPES

Based on Type, the Serviced Apartments Market can be categorized On-Site Managed and Off-Site Managed.

• On-Site Managed: They are serviced apartments with a resident staff being in charge of operations, guest services, and maintenance. They provide a hotel-type service that suits high end corporate tourist as well as those staying longer.

• Off-Site Managed: Such units are controlled remotely at wireless locations or office headquarters and make more autonomy and affordability. Realized by budget minded travellers and those looking to be semi-nomadic and have autonomy.

BASED ON APPLICATIONS

Based on Application, the Serviced Apartments Market can be categorized into Corporate and Leisure.

• Corporate: Corporate serviced apartments are commonly employed by business travellers, ex-pats and relocation professionals and provide all the comforts and privacy of an extended stay coupled together with more office-friendly facilities such as Wi-Fi and workstations.

• Leisure: Leisure-oriented serviced apartments are targeted at leisure travellers and families with the focus on comfort, local experiences and spaciousness of living arrangement, with an emphasis on tourist destinations.

MARKET DYNAMICS

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

DRIVING FACTORS

"Growth of Business Travel and Global Mobility to Boost the Market"

The increasing rate at which both business travel and international movement of workforce is ever increasing contributes largely to the market of serviced apartments. As multinational corporations have increased operations across borders there also emerges the need of accommodating expatriates, relocating professionals and workers who are needed at the place of work on projects of longer durations. Compared to standard hotels, serviced apartments are more comfortable, more private, and cheaper to stay in long term, with features in the hall as kitchen, laundry, and workplaces. This is very attractive to them when working in an HR ad department that deals in temporary assignments or long-term relocations. Moreover, such cities as London, Singapore, New York are in the spotlight of global globalization due to the origin of the modern executive serviced apartment model of leasing being in close proximity to the business centres. All these are some of the factors that lead to occupancy and even the willingness to invest more in this segment, which in turn helps with the Serviced Apartments Market Growth.

"Rise of Digital Nomadism and Remote Work to Expand the Market"

Remote working around the world and the increased popularity of digital nomads has also led to an impressive demand of serviced apartments. As now professionals can work wherever they are, lots of them decided to spend some time in another city or even country and expect to live in a place where home style of life can be united with a quality work infrastructure. Serviced apartments are an ideal alternative as they are flexible in their booking, high-speed internet facilities, spacefully furnished and usually they have community facilities which are quite attractive to remote employees. Even other destinations such as Portugal, Indonesia or Mexico introduce digital nomad visas to promote the long-term stays. With the level of work life overlap getting bigger, serviced apartments are turning out to be the new homestay alternative to resorts and un-furnished rentals. It is not only enhancing direct bookings but also promoting longer average stays since this trend leads to higher revenue per unit of the operators.

RESTRAINING FACTOR

"High Operational and Maintenance Costs to Potentially Impede the Market Growth"

The operating and maintenance cost of serviced apartments is a major limitation factor of the business. These properties also demand regular housekeeping, house goods, utility functions as well as incessant maintenance of furnishing and appliances such as hotel but without the economies of scale. Furthermore, the provision of such facilities as 24-hour concierge services, Wi-Fi, in-unit kitchens increases the requirements to skilled labour force and additional use of energy. Vacillating prices of utility and appreciating wages amid primary urban markets, add more pressure on profitability. With the current inflationary rates in the world, these operational costs become more difficult to bear for the customer, and this may also affect their demand. Smaller operators and start-ups can find this a particularly tough financial burden that constrains their growth, or is forced to reduce services which threatens to destroy the high premium customer experience.

OPPORTUNITY

"Increasing Demand from Healthcare and Education Sectors to create Opportunity for the Product in the Market"

Another opportunity that is developing is focusing on the needs of healthcare and education related travellers. Long recovery acute conditions, medical tourism and academic relocations are all creating demand in extended-stay lodging. Serviced apartments with a safe, home-like environment present a perfect answer to such demands as there are no limitations to stay duration. These hotels are favoured more and more by patients, their families, international students and visiting faculty especially because hotels are expensive. The major international travel destinations which have a top hospital or university facility including Boston, Singapore, and Berlin are experiencing positive booking increase in these groups. Through the creation of tailored packages, being located near to medical facilities or campuses, and the customization of the amenities (such as tranquility rooms or health-related add-ons), serviced apartment operators have the opportunity of entering this still rapidly under-mined but increasing niche with the result of a full-time occupancy and the balancing of revenues. All this increases the Serviced Apartments Market Share in all the developing economies.

CHALLENGE

"Intense Competition from Short-Term Rental Platforms could be a Potential Challenge for Consumers"

Short-term rental applications are a considerable threat to the serviced apartments market due to Airbnb, Booking.com, and Vrbo. At such sites, one will find a myriad of listings that have a lower price with reduced requirements of services, which appeals to the leisure and business travellers. The combination of large inventory and booking models presents a serious challenge to them particularly in urban and tourist-concentrated areas. Also, the overhead market conditions in terms of regulation and services are absent in the vast majority of the hosts, a factor that allows them to be more elastic in terms of prices. This compels facilities in serviced apartments to constantly keep spending on value-added services and online customer interactions to create a distinction amidst them. This issue is complicated by the fact that customers are shifting preferentially to experiential and local-living services which are frequently featured on such platforms. In order to remain competitive, the brands serviced apartments need to innovate as far as the elements of service are concerned, conduct marketing, and embark on integration of platforms, but without damaging their brand standards.

SERVICED APARTMENTS MARKET REGIONAL INSIGHTS

• NORTH AMERICA

It is projected that United States Serviced Apartments Market will command the serviced apartments market given that corporate sector of US is strong. Also a lot of domestic business travel as well as increased remote workers is happening lately in the United States, so these ought to push the growth of the serviced apartments. These major cities New York, Toronto and San Francisco had created a stable demand in the extended-stay accommodation as they have become major hubs of major industries such as finances, technological and medical. Also, mobility of workforce is being promoted by the US government as it encourages investments in infrastructure and business. The region was characterized by established real estate industry and the existence of international serviced apartment brands making it a stable location with a high rate of occupancy. The increasing trend to hybrid working arrangements has already seen increased demand in flexible options on where to live and serviced apartments offer the most perfect home and office balance in short- to mid-term stays.

• EUROPE

The market in Europe continues to be a powerhouse of the market in serviced apartments in the international scene due to its strong tourism, business travel and expatriate market. The international businesses, diplomats and the academic travellers make use of cities such as London, Paris, Berlin and Amsterdam. The transport systems and the high urban environment on the continent contribute to the popularity of serviced apartments among people who require a flexible and central accommodation. Moreover, the freedom of movement regulations of the European Union favours the smooth cross-border working, rising in the long-term settlements. Since Brexit, investment in real estates has transited to serviced apartments because of their strength and profitability in London. The increasing needs of certain sections of the world such as healthcare, education as well as digital nomads comprise an additional boost in the market potential of Europe. The future of the segment is also determined by the sustainability-oriented consumers who are challenging operators to use environmentally-sustainable construction strategies and energy-efficient technologies.

• ASIA

Urbanization, the increase in incomes in the middle classes, and the high level of business activity in the region have rapidly developed Asia as one of the most important areas of growth of the serviced apartments market. The demand is increasing rapidly in such countries as China, India, Japan, Singapore, and South Korea, particularly in financial and technology centres. Serviced apartments are becoming the solution of choice by global companies that are extending their reach into these markets and that need housing accommodation, the relocation of staff, and business travellers. Moreover, long-stay accommodation is enhanced by the popularity of Asia as a destination of medical tourists and international students. Also, operators are shifting toward the local culture of expectations, providing custom services and offering multilingual services. The governments in Asia are spending on tourism and digital infrastructure, which is underpinning the emergence of digital nomads and hybrid employees. The region is the attractive destination of global as well as local serviced apartment providers with increasing investor interest and the expanding hospitality chains.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The global serviced apartments market is defined by a few central players in the industry that dominate both local and international markets providing various accommodation services to their customers (corporate and leisure). The main competitors are The Ascott Limited, an innovator that controls a vast global portfolio under such brands as Citadines, Somerset, and lyf; Frasers Hospitality, which has a reputation of high-end properties and focuses on awing business and long-stay guests in Asia, Europe, and the Middle East; and SACO that dominates in Europe and focuses on upscale urban professionals under its Locke brand. Having been acquired to Ascott, the Oakwood Worldwide has established strong presence in both the Americas and Asia-Pacific. The Marriott International and the Hilton Worldwide have also ventured into the market with their Marriot Executive Apartments and Homewood suites, which are combining holistic hotel comfort with long stay comforts. Also, regional competitors such as Staycity Group and Extended Stay America are growing with purchase decisions and franchise strategies. These businesses are utilizing technology, flexible lease arrangement, and customized experiences to embrace changing wants of the international travellers.

LIST OF TOP SERVICED APARTMENTS COMPANIES

• Roomspace (U.K.)
• Roomzzz Aparthotels (U.K.)
• Numa (U.S.)
• The Ascott Limited (Singapore)
• Edgar Suites (France)

KEY INDUSTRY DEVELOPMENTS

October 2024: Veriu Group also made its first office-to-serviced apartment conversion in Canberra Tuggeranong converting a government building, holding no tenants, into 76 contemporary apartments. This corporate plan will solve the problem of large office vacancy and increase the demand of long stay housing. Veriu, which has more than 3,000 rooms in 24 sites, intends 100 conversions of this type in Australia in spite of stiff building codes.

REPORT COVERAGE

The serviced apartments sector is also experiencing consistent growth, due to changes in the traveling patterns, corporate mobility, and the emergence of the flexible form of working. As customers are in the market to stay, they want homes away from home with added amenities of a hotel-style stay, serviced apartments are becoming a choice rather successfully at a short and long term stay. The industry can be boosted by the current surge in the number of corporate professionals, expatriates, medical tourists, students and digital nomads. Having the additional features to apartments, such as fully equipped kitchens, in-unit laundry and high-speed internet, the serviced apartments offer a higher value compared to their traditional hotel counterparts, particularly when it comes to stay of longer period of time. Further, the demand in the urban setup is being driven by return-to-office requirements and a global economic revival.

Although it is projected to have a positive future, there are certain challenges associated with the market including cost of operation, competition by short term rental platforms, and regulations. Nonetheless, new prospects of office space conversion of underutilized premises, increasing market demand in the healthcare and education sector and regional developments in the Middle East and Asia are defining the future stage of growth. Major competitors are concentrating on integrating technology, sustainability, and personalized experiences to remain competitive. As customer tastes change and more people are living on a flexible basis, serviced apartments have proven to be perfectly placed to grow and stimulate even more innovation over the next few years.