Italy Serviced Apartment Market To Reach $7,546.2 Million By 2033

Italy Serviced Apartment Market Growth & Trends

The Italy serviced apartment market size is expected to reach USD 7,546.2 million by 2033, and is projected to grow at a CAGR of 13.3% from 2025 to 2033, according to a new report by Grand View Research, Inc. The market is being driven by a mix of evolving travel patterns, economic influences, and shifting work culture. A major growth driver is the rising demand from corporate and business travelers, who made up nearly half of the market’s revenue in 2024.

Italy’s role as a leading European business destination-hosting multinational headquarters, trade fairs, and international conferences in cities such as Milan, Rome, and Turin-fuels consistent demand for extended-stay accommodations. The post-pandemic growth of hybrid and remote work has further boosted interest, with professionals on temporary assignments or “workcations” seeking flexible, fully furnished apartments with work-friendly amenities. In addition, the inflow of expatriates, relocators, and long-term international students continues to expand the customer base for stays lasting several months.

Technology adoption and evolving guest expectations are also shaping market momentum. Operators are increasingly integrating smart solutions such as contactless check-in, AI-driven personalization, and IoT-enabled energy efficiency to enhance convenience and reduce operating costs. Sustainability is becoming a defining factor, with many properties incorporating eco-friendly building practices, energy-saving infrastructure, and waste-reduction programs to appeal to environmentally conscious travelers. The ability of serviced apartments to blend hotel-style services with the comfort and privacy of a home also resonates strongly with “bleisure” travelers, who combine business and leisure during the same trip.

On the supply side, the market is witnessing steady expansion through both new developments and conversions of existing properties. High-profile projects in cities such as Milan, Florence, and Venice are adding premium inventory, while growing regulatory clarity for licensed short-term stays is boosting traveler trust and investor confidence. Although zoning and heritage preservation rules in historic city centers can slow approvals, investor sentiment remains strong, supported by high occupancy rates, long average stays, and attractive operating margins compared to traditional hotels. These factors collectively position the Italy serviced apartment market for robust and sustained growth in the years ahead.

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Italy Serviced Apartment Market Report Highlights

• Based on type, short-term segment dominated the overall Italy service dapartment market in 2024. Short-term rentals cater to these travelers by offering hotel-like amenities combined with the privacy and space of an apartment, making them an attractive alternative to traditional hotels. Morevoer, the rise of “bleisure” travel has driven demand for short-term serviced apartments, as business visitors increasingly extend their trips for leisure purposes, preferring accommodations that allow them to combine work and relaxation. The growth of digital booking platforms and last-minute reservation options has further supported this segment’s expansion, enabling operators to capture transient demand during peak tourist seasons and major events.

• Based on end use, the expats and relocators segment is expected to grow significantly from 2025 to 2033 within the Italy serviced apartment market. The segment is benefiting from the rising number of international students, diplomatic staff, and intra-company transfers, all of whom prioritize convenience, security, and proximity to workplaces or academic institutions. Operators are increasingly targeting this demographic with tailored relocation packages, multilingual support staff, and flexible lease options, further enhancing the appeal of serviced apartments for those transitioning to life in Italy.

• Based on booking mode, direct channel segment dominated the market. For long-stay guests, direct booking also facilitates customized agreements, including tailored payment terms and value-added services such as airport transfers or early check-ins. In addition, avoiding intermediary commissions allows operators to reinvest in guest experience, offering perks such as complimentary upgrades or extended check-out times, which further strengthens customer loyalty. The combination of cost savings for both guests and operators, enhanced trust, and personalized engagement has made direct booking a dominant sales channel in Italy’s serviced apartment market.

Italy Serviced Apartment Market Segmentation

Grand View Research has segmented the Italy serviced apartment market based on type, end-use, and booking mode:

Italy Serviced Apartment Type Outlook (Revenue, USD Million, 2021 - 2033)

• Long-term (>30 Nights)

• Short-term (<30 Nights)

Italy Serviced Apartment End-use Outlook (Revenue, USD Million, 2021 - 2033)

• Corporate/ Business Traveler

• Leisure Travelers

• Expats and Relocators

Italy Serviced Apartment Booking Mode Outlook (Revenue, USD Million, 2021 - 2033)

• Direct Booking

• Online Travel Agencies

• Corporate Contracts

List of Key Players in the Italy Serviced Apartment Market

• Marriott International, Inc.

• The Ascott Limited

• Frasers Hospitality

• Milan Royal Suites

• Staycity Ltd

• Habicus Group

• THE SQUA.RE SERVICED APARTMENTS

• adiahotels.com

• Viridian Apartments

• Adagio