Serviced Apartment Market To Grab Immense Growth At Fastest CAGR 2030 |Grand View Research, Inc.

Posted by Mrudula Anil Karmarkar on January 6th, 2025

San Francisco, 06 January 2030: The Report Serviced Apartment Market Size, Share & Trends Analysis Report By Type (Long-Term, Short-Term), By End-use (Corporate/Business Traveler, Leisure Traveler), By Booking Mode, By Region, And Segment Forecasts, 2024 - 2030

The global serviced apartment market size is anticipated to reach USD 248.92 billion by 2030, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 12.7% from 2024 to 2030. Increasing urbanization and the rise of global business travel are driving demand for flexible and convenient accommodation options. Serviced apartments, with their home-like environment, cater to long-term travelers and expatriates by offering a blend of comfort and functionality. They provide a more residential setting compared to traditional hotels, making them an attractive choice for those seeking extended stays and a more personalized living experience while away from home.

The flexibility in rental duration and cost-effectiveness of serviced apartments compared to traditional hotels significantly drive their market growth. For long-term stays, serviced apartments offer a more economical option, providing substantial savings while delivering the convenience of self-catering and additional space. This blend of affordability and comfort appeals to both business and leisure travelers, as it caters to their needs for extended stays with the added benefit of a more home-like environment. This attractiveness to diverse traveler segments helps boost demand and drives the expansion of the market.

The incorporation of smart technology and advanced amenities in modern serviced apartments drives market growth by significantly enhancing the guest experience. Features such as digital check-in/check-out, automated systems, and high-tech entertainment options not only offer added convenience and efficiency but also cater to the tech-savvy preferences of today’s travelers. These innovations improve the overall appeal and functionality of serviced apartments, making them more attractive to both business and leisure guests who seek a seamless and modern living experience, thus boosting demand and expanding the market.

Key players in the serviced apartment industry are embracing several innovations. They are investing in advanced smart technology, such as AI-driven property management systems and IoT-enabled amenities, to enhance operational efficiency and guest comfort. In addition, they are focusing on personalized guest experiences through data analytics, offering tailored services and customization options. Enhancements in sustainability practices, including eco-friendly building materials and energy-efficient systems, are also becoming a priority to attract environmentally conscious travelers. Furthermore, integrating flexible booking options and seamless digital interactions, such as mobile check-in and virtual concierge services, are helping them adapt to evolving consumer expectations and retain their market position.

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The market is driven by a growing demand for flexible, cost-effective accommodations that cater to both business and leisure travelers. Factors such as increased corporate travel, employee relocation, and the rise of digital nomads contribute significantly to market growth. Serviced apartments offer a "home away from home" experience, with amenities like kitchens and living spaces, making them ideal for extended stays. In addition, the rise of online booking platforms, urbanization, and the appeal of privacy and safety in a post-pandemic world has further boosted demand, particularly in emerging markets and urban centers.

Serviced Apartment Market Report Highlights

• The growth of serviced apartments for long-term stays is driven by their cost-effectiveness, flexibility in rental duration, and the combination of home-like amenities with the convenience of hotel services.
• The demand for serviced apartments among ex-pats and relocators is driven by their need for flexible, comfortable, and fully equipped living spaces that offer a home-like environment with the convenience of professional services during their transition period.
• The dominance of direct booking for serviced apartments is driven by travelers' desire for better rates, personalized service, and greater control over their reservation details, often resulting in cost savings and enhanced guest experience.
• North America accounted for a substantial market share in the global market for serviced apartments driven by the high demand for flexible, long-term accommodations from business travelers and expatriates, who value the blend of comfort, space, and home-like amenities. In addition, the growth of major cities and the increasing trend towards remote work and extended business assignments further fuel the popularity of serviced apartments in the region.

Growth in corporate travel significantly drives market expansion by increasing the demand for long-term, flexible, and cost-effective accommodations for business travelers. According to the Global Business Travel Association (GBTA), business travel accounted for about 20% of global travel expenditures in 2021 and increased by 47%, reaching .03 trillion in 2022. Projections indicate an additional 32% growth in 2023, with spending expected to reach .4 trillion by 2024, surpassing pre-pandemic levels.

Companies often require housing solutions for employees on extended assignments, relocations, or project-based work, where serviced apartments provide a more comfortable and economical alternative to hotels. With features like fully equipped kitchens, living spaces, and home-like amenities, these apartments offer a balance between convenience and privacy, making them ideal for corporate travelers seeking a productive and comfortable environment for longer stays. This trend has expanded the market, especially in business hubs and major cities worldwide.

Serviced Apartment Market Report Scope

Moreover, an increase in tourism drives market growth by increasing demand for more spacious, affordable, and flexible accommodations, especially for families and long-term travelers. As more tourists seek personalized and home-like stays, serviced apartments offer an attractive alternative to traditional hotels, with amenities such as kitchens, living areas, and multiple bedrooms. These apartments cater to groups, providing cost savings through self-catering options and extended stays. In addition, as tourists increasingly prefer unique, localized experiences, serviced apartments often provide the flexibility and convenience needed for longer or more immersive travel experiences.

Key players in the market are driving innovation by introducing tech-driven solutions and personalized services to enhance guest experiences. Many companies are adopting smart home technology, offering app-based control of in-room features such as lighting, climate, and entertainment. Contactless check-ins, mobile concierge services, and virtual tours have also become standard in response to increased demand for convenience and safety. In addition, some operators are customizing apartment designs to cater to niche markets like eco-conscious travelers or long-stay professionals by incorporating sustainable practices, flexible workspaces, and wellness amenities. These innovations are helping serviced apartments stay competitive and attract a broader audience.