Serviced Apartment Market Size to Hit USD 420.89 Bn by 2034

Serviced Apartment Market Key Takeaways

• North America dominated the serviced apartment market with the largest market share of 38% in 2023.
• Europe is projected to grow at a double digit CAGR of 12.32% during the forecast period.
• By type, the short-term (<30 nights) segment accounted for the biggest market share of 66% in 2023.
• By type, the long-term (>30 nights) segment is predicted to witness the fastest CAGR of 13.94% in the market over the forecast period.
• By end-use, the corporate/business traveler segment has held the major market share of 53% in 2023.
• By end-use, the expats and relocators segment is expected to have a significant CAGR of 14.25% during the predicted period.
• By booking mode, the direct booking segment contributed the highest market share of 49% in 2023.
• By booking mode, the corporate contracts segment is expanding at a remarkable CAGR of 14.22% during the predicted period.

Serviced Apartment Market Overview

The serviced apartment market is undergoing dynamic transformation as global travel habits shift and accommodation preferences evolve. In 2023, the market gained considerable momentum, with North America leading by capturing 38% of the global market share. This growth is driven by the rising demand for flexible, cost-efficient, and comfortable long-term and short-term lodging alternatives, especially among business travelers and expatriates.

The growing awareness of the advantages of serviced apartments—such as fully furnished spaces, kitchen facilities, and personalized services—is influencing the hospitality landscape globally.

Serviced Apartment Market Drivers

A major driving force behind the expansion of the serviced apartment market is the increasing mobility of corporate professionals and the growing number of international assignments. Organizations seeking flexible, extended-stay options for employees are turning to serviced apartments due to their cost-effectiveness compared to traditional hotels.

Furthermore, a rise in solo and remote work travel, along with digital nomadism, has significantly contributed to the demand for short-term rentals that offer both comfort and autonomy.

Serviced Apartment Market Opportunities

The rise of digital booking platforms and contactless technology has unlocked new opportunities for operators to reach a broader audience. Emerging markets in Asia and South America offer untapped potential, especially as their infrastructure for business and tourism expands.

Moreover, long-term rentals are gaining traction, opening avenues for operators to cater to families, healthcare travelers, and expats. The shift toward sustainable and tech-enabled living spaces is also presenting lucrative investment prospects in this segment.

Serviced Apartment Market Challenges

Despite its promising outlook, the serviced apartment market faces several challenges. Regulatory compliance across multiple regions remains a hurdle, especially with changing housing and hospitality laws.

Additionally, competition from short-term rental platforms and traditional hotels continues to pressure pricing and occupancy rates. Operators must also address consumer expectations around digital amenities, cleanliness, and seamless service, which have become more stringent post-pandemic.

Serviced Apartment Market Regional Insights

North America dominated the market in 2023, accounting for 38% of the global revenue, thanks to high demand from corporate travelers and relocators.

Europe is projected to grow at a double-digit CAGR of 12.32%, fueled by the region’s growing cross-border job mobility and the expansion of startup ecosystems.

Asia Pacific is also poised for strong growth, driven by rising tourism and urban infrastructure development in countries like India, China, and Southeast Asia.

Serviced Apartment Market 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.

.Serviced Apartment Market Companies