The increasing globalisation of business, and the growth of business centres has led to more entrepreneurs investing in property and embracing the serviced apartment industry. Not only are gaps being filled but as business travellers are temporarily relocating to the other side of the world, medium to long-term stays have gained prominence versus traditional permanent relocations. Closer to home, we’ve seen serviced apartments plug the gaps in London where property didn’t exist or, if it did exist, there was little occupancy. East London’s Aldgate, Old Street and areas around The Shard have also seen substantial growth, as more businesses move into these areas and increase interest and investment.
Further afield, the Netherlands has suffered a fall in house prices that has seen sellers looking for another means of revenue by letting their properties as serviced apartments. This suits many property owners and providers, as it not only provides a steady stream of revenue, but also corporate guests have temporary contracts and keep apartments to a high standard, which will be maintained and kept presentable should the homeowner decide to sell. Rather than leaving the property empty, owners are now seeing the benefits of letting out their property, which can provide medium to long-term lets, which are more flexible and lucrative than fixed tenancy agreements.
Whilst many areas have seen growth, Dubai, Abu Dhabi, Doha and much of the Middle East are now saturated with high supply but relatively low demand. High availability and low occupancy would suggest competitive rates, but in reality the owners of these properties refuse to budge on nightly rates. As always, luxury brands want to reflect luxury and exclusivity. Further east, India and Far East Asia have seen substantial growth. Companies have moved into these regions to take advantage of low labour costs, cut-price rent on premises and less red tape. In Bangalore and Hyderabad the IT market is growing significantly, as is the TV and film industry in Chennai. Growing demand for serviced apartments isn’t just confined to the shores of the UK, as gaps are being filled all around the world.