UK Serviced Apartment Market To Reach $8.82 Billion By 2033

August 2025 | Report Format: Electronic (PDF)

UK Serviced Apartment Market Growth & Trends

The UK serviced apartment market size is expected to reach USD 8.82 billion by 2033, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 8.8% from 2025 to 2033. The market is undergoing a strategic shift, driven by rising demand for flexible, long-stay accommodation that combines residential comfort with hotel-grade services. Key urban centres, including London, Manchester, Birmingham, and Edinburgh, are witnessing targeted investments from developers and operators responding to the needs of project-based workers, extended-stay tourists, and international assignees. This segment is increasingly positioned as a core component of the hospitality offering, with operators enhancing product differentiation through location-specific amenities, design-led interiors, and value-added services tailored to business and leisure travellers.

Serviced apartments are increasingly positioned as lifestyle-driven assets, offering a balance of functionality, privacy, and location appeal. Many operators enhance their value proposition by embedding properties within culturally rich neighbourhoods, close to key business districts and transport links. At the same time, interior layouts and design aesthetics are being tailored to reflect contemporary living preferences, including smart technologies, flexible furnishings, and access to local amenities that align with guest expectations around comfort and authenticity.

Consumer behaviour in the post-pandemic period has emphasized privacy, wellness, and control over one’s environment. As a result, serviced apartments, offering self-contained units with full kitchens, private living areas, and dedicated workspaces, are considered an optimal solution for extended stays. Guests value maintaining routines, preparing meals, and working remotely without disruption, making these units particularly attractive to long-stay travellers, project-based professionals, and relocating families.

Specialised offerings are also emerging, including sustainability-focused units, wellness-enhanced interiors, and pet-friendly options. Operators are adopting digital-first solutions such as mobile check-in, keyless entry, and concierge apps to enhance convenience and operational efficiency. This hybrid model of residential-style living with hotel-level services is proving increasingly attractive across both B2B and B2C segments, reinforcing the competitive positioning of serviced apartments within the wider accommodation landscape.

Continued investment in infrastructure, franchising, and mixed-use developments is expected to support the sector’s expansion. Public-private collaboration further drives uptake, particularly with academic institutions, innovation clusters, and regeneration zones. As mobility patterns evolve and the boundaries between travel, work, and residential life become increasingly fluid, serviced apartments are set to play a central role in the UK’s future hospitality ecosystem.

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UK Serviced Apartment Market Report Highlights

Short-term (<30 nights) stays held a substantial share in the UK, supported by increasing demand for urban-centric getaways prioritizing flexibility, privacy, and convenience. These stays appeal to weekend travellers, city break tourists, and business visitors seeking fully equipped spaces that combine home comforts with easy access to cultural, commercial, and leisure zones across cities like London, Manchester, and Edinburgh.
Corporate/business travelers held a substantial share in the UK, fuelled by ongoing demand for project-based assignments, client-facing roles, and relocation stays. Serviced apartments offer these guests the comfort of extended living, complete with workspaces, kitchen facilities, and privacy, while being strategically located near commercial districts and transport hubs in cities like London, Birmingham, and Glasgow.
Corporate contracts are projected to grow at a CAGR of 10.4% over the forecast period of 2025–2033, driven by rising adoption of long-stay lodging solutions for relocating executives, temporary project teams, and hybrid workforces. Employers increasingly favor serviced apartments for their cost-efficiency, flexibility, and ability to support employee wellbeing during extended assignments in business hubs across the UK.