With many people now wishing to travel and take in different cultures, serviced apartments are continuing to rise in popularity – and a recent report indicates that in Scotland, there could be a surge of growth in the sector over the next two years. For investors looking to cash in on lucrative property trends, this could be one to watch and think about investing in.
For those who aren’t quite sure what the term ‘serviced apartment’ means, it’s basically a fully furnished property that is similar to a hotel, which is available for both short-term and long-term lets. It has one lump monthly payment that includes everything from the rent to the utilities; and it typically includes hotel like benefits such as a cleaning service or a 24-hour customer service.
The serviced apartment sector in Scotland is set to thrive over the next couple of years as it is said that travellers are more open to less conventional types of accommodation.
The report, produced in part by The Association of Serviced Apartment Providers, found that the serviced apartment sector is set to double within the next two years; with a growth of 8.4% per year until 2017.
The report cited part of the surge being down to the increasing use of accommodation locator websites, which give travellers various options when planning their trip(s).
Whilst London was said to previously dominate in the purpose built expansion, the report highlighted Scotland as a future growth hotspot, with an average increase in serviced apartment supply of 21.1%.
Whilst London continues to lead in terms of new units, with 1200 in development over the next two years, Scotland isn’t far behind, with 1,061 units in the pipeline. Whilst right now the serviced apartment / hotel segment of the market is relatively small (3.1% market share) right now, its set to grow vastly, with a potential “doubling of stock”, according to the report.
With this report indicating strong growth in a future Scotland for serviced apartments, it could be worth considering as an investment; after all, it could pay real dividends in future.
For more advice on your property investment portfolio, talk to your Clyde Property local branch today.