Hamburg/Berlin, 28 November 2023. Serviced apartments have been one of the fastest growing segments in the German and European hospitality market for more than 20 years. They benefit from megatrends such as urbanisation, individualisation and digitisation, from growing target groups for stays of between one night and six months, and also from their lean operating structures. The largest European markets include the UK in top slot, followed by Germany and France. There are currently 50,200 serviced apartments in Germany alone, with a pipeline of 24.5% up to the end of 2026 (as at 31 October 2023, Apartmentservice).

A recently published white paper, entitled “Analysis of market potential for serviced apartments”, offers investors, developers and operators a detailed insight into the best locations across the serviced apartment segment in Germany and Europe. On behalf of Union Investment, Apartmentservice analysed a total of 40 cities, mainly German primary to quaternary cities, plus selected major European cities, based on demand for overnight stays and the current local supply situation for this type of accommodation.

“Our white paper shows that the opportunities in the segment remain enormous. The combination of compelling business performance by serviced apartment operators and the very high potential indicated by the survey in many locations will ensure dynamic future growth in the segment,” said Henrik von Bothmer, head of Operated Living at Union Investment.

From Berlin to Würzburg

Even (indeed especially) in Berlin and Munich, the largest German serviced apartment markets in terms of numbers, there is still significant or strong potential for developing additional units. Berlin is well out in front among German cities here, with only 40% market coverage. Total potential for around 41,500 serviced apartment units was identified in Germany across all the cities surveyed. The twelve most attractive primary, secondary, tertiary and quaternary cities were analysed in more detail, including hidden champions such as Hanover, Würzburg and Münster.

“Our analysis reveals that serviced apartments now work in any location where large companies are based and the housing supply is low or there are few modern hotels,” explained Anett Gregorius, founder and owner of Apartmentservice. “Locations with a monofocus are exceptions to this rule, together with primary to quaternary locations that have grown too fast in recent years and are now showing signs of saturation, as likewise identified in the white paper.”

From London to Berlin

In a European comparison of market potential, London has the largest supply of serviced apartments and also the greatest development potential across all 40 cities analysed, followed by Paris, Madrid and 4th-placed Berlin. With almost 6,300 serviced apartments, Vienna has the second-largest number of any city after London, but at the same time offers significantly less potential than comparable primary cities.

The “Analysis of market potential for serviced apartments” white paper is now available free of charge via this .


Media contacts:
Apartmentservice
Wolfgang Ludwig, Ludwig Medien & Kommunikation
Tel.: 82, Mobile: 34,
E-mail:

Union Investment
Astrid Lipsky, Manager, Marketing/Communication
Tel.:
E-mail:


About Apartmentservice:
Expert, pioneer, thought leader, consultant, booking platform, publisher – providing a 360° view of the serviced apartment segment. Apartmentservice has been an established industry player since 2001. It advises investors, developers and operators on new developments, prepares feasibility studies, and collects and publishes key figures annually on the segment in Germany. At apartmentservice.de, the first booking platform for serviced apartments, Apartmentservice also lists more than 120 destinations in Germany and around the world. Once a year, Apartmentservice organises the SO!APART conference, which has become the leading industry gathering in the German-speaking countries since it was first held in 2013. The company has been publishing trade magazine SO!APART insight since 2021 as an in-depth digital medium for all major players in the serviced apartment and micro-living sector.

About Union Investment:
Union Investment has stood for reliability, sustainability and a strong focus on high-quality asset and investment management for over 55 years. With assets under management currently totalling around EUR 57 billion across open-ended real estate funds, special funds and service and pooling mandates, Union Investment is one of Europe’s biggest providers of real estate solutions for private and institutional investors. The company invests in the office, retail, catering, logistics and residential asset classes, with a portfolio comprising around 500 properties in 26 countries worldwide. Since 2017, Union Investment has also been investing in micro-living properties and serviced apartments at key locations in Europe.