“ Hybrid working is a lot more prevalent in the market and people don’t want to be inside their apartment full time confined to one space.”
FRUZSINA HODSON, SENIOR MANAGER – GROUP DESTINATIONS, SANTA FE RELOCATION
THE RISE IN HYBRID WORKSPACES Longer-term stay options, such as monthly or yearly rentals, are becoming more popular among remote workers, expatriates and individuals seeking temporary housing solutions. This is prompting serviced apartment providers to offer flexible and competitive extended-stay packages. “There is definitely a need for this flexibility,” says
Rebecca Gunn, business development manager at Icon Relocation. “Individuals in temporary housing might not need to be in the office every day, so they need to have a work-from-home facility. In more modern blocks this has become standard, but with older units, providers might partner with a hybrid workspace nearby that guests can use for free. It is definitely something that the providers are becoming more aware of.” Fruzsina Hodson, senior manager – group destination
services at Santa Fe Relocation, says that since the pandemic, there has been a notable increase in the availability of service apartments equipped for work, allowing for a more comfortable remote-work experience. “Hybrid working is a lot more prevalent in the
market and people don’t want to be inside their apartment full time confined to one space,” she says. “Before Covid-19, it was really hard to even get a desk or a chair. In a lot of apartments, there was only a breakfast bar people had to work from. That is now changing, especially in the new builds.”
SHIFTING DEMANDS AND RISING COSTS PUT PRESSURE ON THE MARKET Rebecca Gunn of Icon Relocation says that flexibility is still crucial due to the unpredictable nature of rental markets, especially in cities like London. “The rental market globally is tough at the moment
and it can be challenging to find 30 days of temporary accommodation at short notice,” she says. “We have strong relationships with serviced accommodation providers, which enable us to source accommodation and also to request extensions when needed, even at short notice.” She says the serviced apartment market in key global
cities currently has limited movement and low stock levels. This trend was exacerbated by the pandemic. It has led to a landlord’s market and longer tenancy life cycles, reducing the availability of rental properties
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as a result. For example, some providers have imposed minimum-stay restrictions or long tenancy contracts, which can affect short-stay assignees. “Landlords were able to dictate their terms and, as a
result, tenancies became longer,” she says. “There is just not the number of regular properties available now. The life cycle of a tenancy is far longer than it was and stock is being refreshed at a slower rate.” When properties do come up for rental renewals,
there can often be significant price increases as well. Challenges vary across regions, with Europe, the US and APAC facing similar issues of low stock levels and limited movement. In some regions, rental properties may not even hit the open market before being rented out due to strong networks and word-of-mouth referrals. Fruzsina Hodson says the client profile for relocation
packages has also changed demand. Santa Fe Relocation is now helping a wider variety of clients, including younger assignees. “Formerly, it was the VIP individuals who were
coming with families and so requirements and budgets were completely different,” she says. “Now relocation has opened up to almost everybody. The majority of our clients are younger individuals. As digital nomads they will go anywhere, pack a bag and travel the world. They don’t have a family and may be better suited to co-living and sharing. “If you look at the serviced accommodation market,
the largest property is usually a three-bedroom apartment, while most units are just one bedroom. That makes it much less appealing to executives with families and pets.” She says Europe has always offered a variety of
serviced apartments, while the US market is saturated following a period of new building. In Asia, availability varies by market. Often, getting access to prime and well-located properties depends on the strength of the relationships you have built with local providers. “While serviced apartments are the preferred option
due to regulation, reliability and employer duty of care, some clients, especially in Germany, opt for Airbnb-style rentals for lower-budget options,” says Fruzsina Hodson. “However, outside of Germany these are less regulated and may pose challenges around duty of care, quality assurance and safety.”
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