Spain captures 23% of European serviced apartment investment: a fast-growing real estate opportunity

The European real estate market is shifting, and serviced apartments are emerging as one of the most attractive investment assets.

According to Savills, Spain accounted for 23% of total European investment in this segment in 2025, reaching €275 million, out of approximately €1.2 billion across Europe.

A growing niche within hospitality

• * 5% of total hotel investment
• * 8% of current supply
• * 12% of development pipeline

This signals strong future expansion and increasing institutional interest.

Strong performance metrics

• * 79% average occupancy
• * €136 average daily rate
• * 5.9% annual demand growth since 2019

Compared to just 1% growth in traditional hotels, this highlights a major shift in demand.

What’s driving growth?

✔ Longer stays
✔ Remote work trends
✔ Stricter short-term rental regulations
✔ Demand for flexible accommodation

Europe’s position as the world’s top tourist destination — with around 800 million visitors — further supports growth.

Regulation reshaping demand

Cities like Amsterdam, Paris and Edinburgh are tightening rules on short-term rentals, reducing informal supply and pushing demand toward regulated alternatives.

Shift toward institutional assets

Serviced apartments benefit from:

• * Stable income streams
• * Higher occupancy
• * Lower regulatory risk
• * Institutional capital inflows

The sector is also consolidating, with operators scaling across borders.

Investor perspective

For real estate investors, this segment offers:

• * Recurring income
• * Regulatory alignment
• * Operational flexibility
• * Long-term growth potential

Spain stands out as a prime market due to its tourism strength and evolving housing dynamics.

Final takeaway

Serviced apartments are no longer a niche—they are becoming a core real estate asset class in Europe.

Strategic investment in this segment can deliver strong, stable returns in a rapidly evolving market.