The sharing economy, desire for travel and a flexible lifestyle (e.g., digital nomads), urban/rural and international mobility, remote working, changing work patterns, workcations, mental awareness, loneliness and the need for experiences, financial constraints, lack of affordable housing, increased university education, delayed age of marriage, and increasing single occupancy households are just some of the factors that have stimulated the growth of serviced living.
As such, the rapid development of serviced living units and the range of concepts has seen a remarkable expansion in recent years. These developments have served to blur the lines between the hotel and residential real estate segments, and this convergence has caused some confusion in the definitions used to describe these segments. Below we define the general differences between hotels and residential and central concepts established within the serviced living space.
Serviced Living vs. Residential
The main differentials between residential and serviced living concepts are that serviced living units are always fully furnished; they provide additional hospitality services beyond essential maintenance and typically offer a broader range of public facilities. For occupants, serviced living concepts have a significant advantage over private rental properties in their flexible duration and less restrictive rental agreements, i.e., without the burden for guarantors and large deposits.
Serviced Living vs. Hotel
The main differentials between standard hotel concepts and serviced living concepts are that serviced living units usually include an in-room kitchenette (or kitchen), public (or private) laundry facilities and target long- or medium-term stays. Serviced living concepts have a significant advantage to occupants in the overall living cost and often align with aspirations and engagement with the community.
The exception is the extended-stay market hotel concepts that are similar to aparthotels and could be defined either as hotel or serviced living products.
Forms of Serviced Living Concepts
While serviced apartments have been in existence since the 1980s in North America, as an asset class for Europe, they are a relatively new import. Similarly, student accommodations were historically institutional or fragmented and had only recently emerged as an asset class as purpose-built student accommodation (PBSA).
With the creativity stimulated by niche markets and changing priorities, serviced living concepts are constantly evolving. Below are some general outlines of the main features of serviced living. These concepts are by no means rigid; size and facilities vary based on geography, culture, and intended occupant profiles.
| Serviced Living Type | Size (sqm) | Features |
| Serviced Apartments | 22-60 | – limited housekeeping (weekly/bi-weekly) and few, if any, dining facilities – tech-focused such as keyless access, self-check-in/out, online-concierge |
| Aparthotels | 20-60 | – serviced apartment/hotel hybrid concept with more hotel-like services & facilities – often few limitations on short transient stays |
| Branded Residences | 60+ | – private owned apartments operated by luxury or upscale hotel brands – usually, full range of hotel services or immediately adjacent to branded hotel |
| Co-living | 17-30 | – may include multiple occupancy rooms – public area communities are the main focus, such as common co-working areas, rooftop spaces, community events |
| Micro-living | 16-22 | – small yet well designed functional space – targeted at single occupancy in minimal space/cost and environmental impact |
| Student Accommodation | 17-30 | – may include multiple occupancy rooms – student client-focused with proximity to university/study centre as with co-living public area communities are the main focus including common study, lounge & leisure areas |
| Senior & Assisted Living | 40-60+ | – includes medical facilities or supervision – equipped with age-appropriate amenities, wider door frames, adjustable surfaces, shower handles etc… communal areas include shared lounges, gardens and terraces. |
Advantages of Serviced Living
Apart from the advantages of flexibility and cost, serviced living can provide occupants access to like-minded communities, benefits from broadband connection & new technology, and reduced carbon footprint.
Serviced living concepts, especially those based around communal areas, provide high-density living, whereas services and well-curated communities add value. The efficient use of space and increased perceived value provide attractive investment returns for developers and individual investors.