Home » Real Estate » Quick Facts on Serviced Apartment Investments in the UK You should Know about

Perhaps you’ve been thinking about an investment but are not quite sure which would fit you best. Perhaps you’ve heard about serviced flats or apartments but don’t know exactly what that means, or what such an investment entails. Or maybe you’re just curious about the accommodation sector in the economy and are wondering what the next trend is. This one is for you: serviced apartment investments in the UK are up and they are increasing, and for very good reason – it’s new and the demand overshadows the supply by margins. Here are some quick facts on serviced apartment investments in the UK you should know about.

What exactly are serviced flats?

Serviced flats are flats that are let out or rented out over the short term for travelers. They offer all the amenities of a home (such as a kitchen, etc), but also services that are usually only found in hotels, such as housekeeping. The advantage to the guest (traveler) is that the apartment has a much homier feel than a hotel, but still offers comfort and convenience whilst providing guests with lesser costs.

Some quick facts

To show you that the investment opportunity is real, here are some quick facts:

  • It’s projected that over the next two years, the serviced hotel industry will see a rise of 120% or more.
  • British companies report an increase in demand and use for serviced apartments of 86%.
  • 2016 is projected to see the biggest growth yet.

How the industry is transformed

There was a time when serviced hotelswere only in demand in the corporate world – used for expats, guests, and employees who were on the go. However, the general market has taken notice and more and more travelers opt to rent a serviced apartment rather than stay in a hotel. This has transformed the whole service and hospitality industry, leaving hotels and hostels scrambling to make ends meet.

Some advantages

The advantages of investing in serviced apartments are plentiful, but here are the main ones:

  • Steady income
  • Increase in real estate value
  • No management responsibilities
  • Increased tax advantages compared to renting out to long-term tenants.

The serviced apartments industry is actually not as recent a concept as you might believe – decades ago it was popular for corporations to keep serviced apartments handy to accommodate expats, employees, or visitors and guests. But it’s only recently that the general public has been aware that they can stay in serviced apartments, and that there are many more benefits to it than lower costs and enjoying the feeling of home. The demand is there, as confirmed by experienced firms like Servicedletsgroup.com, and is increasing very quickly. When it comes to serviced apartments, now is the time – strike whilst the iron is hot.