Germany Serviced Apartment Market Report: Market Size & Forecast 2026

Germany's serviced apartment sector represents one of continental Europe's most established markets, driven by the country's position as a business hub and significant housing constraints in urban centers. The market demonstrated solid operational performance through 2024, supported by robust leisure demand and a recovering corporate travel segment. Occupancy levels across European serviced apartments reached 79% in 2025 with average daily rates of approximately €136.

• •German market valued at $2.80 billion in 2024, projected to reach $5.14 billion by 2033
• •European serviced apartment market reached $40.36 billion in 2025 with 13.15% annual growth trajectory
• •Strong operational metrics with 79% occupancy and €136 average daily rate achieved across Europe in 2025

The German serviced apartment market benefits from a combination of sustained corporate demand and structural housing supply constraints that make extended-stay accommodations increasingly attractive to both business and private customers. Corporate relocations, project-based work assignments, and multinational company expansions in Germany continue to drive demand for flexible, medium-term housing solutions. Rising construction costs, zoning regulations, and limited residential rental inventory in major cities have made serviced apartments an appealing alternative to traditional leases.

• •Corporate travel recovery and multinational company expansion fueling demand for flexible accommodations
• •Housing shortages and high residential rental prices in Berlin, Munich, Hamburg, and Frankfurt driving market growth
• •Growing preference for furnished, flexible living arrangements among both business travelers and private customers

The German market shows strong concentration in major metropolitan areas, particularly Berlin, Munich, Hamburg, and Frankfurt, where business activity and international workforce demands are highest. Supply growth has remained above average across the asset class, with operators expanding portfolios in both primary city centers and secondary business locations. The market serves distinct customer segments including corporate housing clients, construction project teams, and extended-stay leisure travelers.

• •Primary concentration in Berlin, Munich, Hamburg, and Frankfurt business and financial hubs
• •Corporate housing and project-based assignments represent the largest demand segment
• •Above-average supply growth continues across major German cities despite market maturation

What are the recent trends and outlook?

The sector is positioned for sustained growth as corporate travel patterns evolve and businesses increasingly favor flexible accommodation solutions over traditional long-term leases. Sustainability initiatives and digitalization of booking platforms and guest services are becoming key differentiators among operators seeking competitive advantage. With the broader European market projected to expand significantly through 2034, Germany's established infrastructure, strong economic fundamentals, and central European location position it well to capture continued investment and demand growth.

• •Stable occupancy and rate growth expected as corporate segment continues recovery
• •Growing emphasis on sustainability certifications and contactless guest experiences across portfolios
• •Continued institutional investment anticipated as investors seek stable, income-producing real estate assets