Serviced Apartments Gain Traction as Institutional Alternative to Short-Term Rentals
Serviced apartments are emerging as a preferred choice for institutional investors in Europe, driven by regulatory changes in short-term rentals and evolving travel demand. According to Savills, the European serviced apartment sector recorded approximately €1.2 billion in transaction volume in 2025, reflecting growing institutional interest. Serviced apartments currently account for about 8% of the total accommodation stock across 26 major European gateway cities, but they represent 12% of the development pipeline, indicating a growing share of future supply. The segment has seen a compound annual growth rate of 5.9% since 2019, compared to 1.0% for the broader hotel sector. Regulatory changes, such as night caps and licensing requirements, are reducing the availability of informal accommodation supply, redirecting demand toward regulated formats like serviced apartments. 
