Corporate demand driving growth in serviced apartment sector

GSAIR report predicts sector could be worth £183.6 billion globally by 2030

Corporate demand is set to drive a doubling in the size of the global serviced apartment sector by 2033, according to a new report.

The 2025 Global Serviced Apartment Industry Report (GSAIR) predicts that the sector could be worth £183.6 billion globally by 2030.

Modelling projects the UK serviced apartment market to double in value to £6.52 billion by 2033, driven by corporate relocation programmes, reflecting a corporate annual growth rate of 8.8%.

This expected growth is in turn fuelling demand for more flexible, short-term accommodation that offers residential amenities.

The report notes that the proportion of investors targeting serviced apartments rose from 24% in 2024 to 27% in 2025, according to Savills.

It sys the convergence of serviced apartments and co-living concepts is ‘accelerating’ with UK cities set for more development ahead in 2026.

The GSAIR report says the ‘continuing maturation’ of Gen Z is ‘accelerating demand’ for digital-first serviced apartments, characterised by wider adoption of mobile apps and smart room integrations such as heating controls.

AI is also starting to impact the sector, it says, as brands invest in generative AI to enhance their guests’ experiences.

The report predicts that changes in the regulatory landscape will lead to a renewed focus on sustainability and that geopolitical issues are ‘increasing attention on risk management and traveller safety’.

Ariosi, the consultancy firm behind the report, hosted industry representatives at Citadines in London’s Holborn with a presentation and panel discussion with industry experts

Commenting on the report findings, Alistair Murray, chief operating officer, at Ariosi said: “2026 represents a critical inflection point for corporate travel managers, relocation specialists and the serviced apartment sector.

“Traditional accommodation as well as wider corporate travel and relocation strategies must evolve at pace to meet the demands of a transformed workforce and increased regulatory environment globally.

“Several factors are bearing influence, from changing client expectations, employment models, the emerging sectors fuelling growth in demand, legislation, the accelerating evolution of AI and shifting investment patterns. All of which are set to impact the sector’s structure, proposition and client demand patterns.

“Flexibility will be the guiding principle heading into 2026 to accommodate ongoing wider geopolitical and geoeconomic changes and influences.

“Whilst there is significant opportunity for growth, buoyed by an increased appetite for the sector from investors and corporate relocation demand, operators also need to sustain their own investment across technology, reporting and data to ensure they are ready to capture and fulfil that demand in the months to come.”