With the global rise in consumer demand for serviced apartments, and more commuters spending the work-week away from home, investors are expressing increased interest in the the sector in Germany as the concept is set to grow by 40% by 2019 according to data from Apartmentservice Germany.
The highest number of planned serviced apartments are in Munich (2,313 units), and Berlin (1,750). The number of serviced apartments has grown from around 375 properties with roughly 20,000 units in 2012, to 31,600 units at the start of 2017. Larger brands including Hyatt and Accor’s Adagio have recently entered or increased their activity within the German serviced apartment market.
Consumers driving growth in German serviced apartments are a mix of business guests, students and tourists reacting to changes in the job market, limited student accommodation in university cities and a general growth in tourism, with savings of up to 50% compared with traditional hotels.