Serviced Apartments industry trends for 2019

Time to look into the crystal ball!

We managed to get a hold of a crystal ball and now our COO Jussi Saarinen reveals what he saw when he looked into it! So here you are, the trends in the serviced apartment sector for 2019. 

1. Serviced apartments are developing into a temporary all-rounder form of living

The lines between traditional industries are blurring i.e. thinking the difference between a studio in a residential building and an aparthotel room with a kitchen. Blurred industry lines are not necessarily bad, rather part of natural development, as long as your customers know what they are getting. The key is to see a concept beyond the definitions, since concept is much more dynamic and reactive to customers need.

2. Decision-making power is moving from the company to the guest

Given the serviced apartment market is getting its business largely from B2B, this is an important trend. It’s not only due to more versatile payment options or the rise of booking platforms, but also due to policy changes within some industries. Getting a lump sum as part of a compensation package and freedom to choose a place to live drive naturally more affordable options. Considering the ongoing battle for the best talents between companies, it’s important to select the most attractive policy options within legislative frames.

3. More micro-apartments and shared options 

Units with less than 25 m² now represent the largest proportion of the range of serviced apartments in a block rented property and are also the most frequently requested. This is in line with the trend nr. 2. Since employees more often take care of the costs, it is easy to settle smaller apartments or even shared options. Also, a city center location is not a necessity if public transportation is reasonable.

4. Regulation discussion for short-term leasing reaches next level

Until nowthe discussion has been driven mainly by the rise of peer-to-peer lending platforms and disrupted neighbors. Often forgetting that the need for more flexible housing is coming largely from companies that have a need to move and scale their workforce faster than ever. A flexible and affordable housing market is an important enabler for growth of businesses and therefore for the creation of new jobs. Those cities that are willing to be seen attractive from business perspective, should take this into account.

In 2018, we saw some cities loosen their previously set rules, since the topic is much larger than just regulating P2P use. Regardless of booking channel, there has been and will be a growing need for flexible and serviced living options.

Author:

Jussi Saarinen
Chief Operating Officer at Forenom
Follow Jussi on LinkedIn! 

We help thousands of companies to grow and mobilize their workforce in a flexible and convenient manner. Let us know below if you want to discuss your specific accommodation challenges – we are here to help!

Did you enjoy this article? Then share it with a colleague or friend here: