Why serviced apartments are in high demand

Serviced apartments are increasingly becoming the new bride in property business due to the flexible nature of convenience rendered and amenities enjoyed by tenants. Checks by Daily Trust show that serviced apartments offer a range of benefits that can be particularly worthwhile during longer periods of stay which is why more businesses and corporate organisations […]

Serviced apartments are increasingly becoming the new bride in property business due to the flexible nature of convenience rendered and amenities enjoyed by tenants.

Checks by Daily Trust show that serviced apartments offer a range of benefits that can be particularly worthwhile during longer periods of stay which is why more businesses and corporate organisations are now turning to such accommodations.

Data has shown that Lagos, Abuja, Port Harcourt are other major cities are currently leading in the number of serviced apartments in the country.

Serviced apartments are usually furnished self-contained apartments that are rented for short periods, usually weekly or monthly as opposed to annual rentals in the unfurnished apartment rental market.

Estimated at hundreds of millions of naira, Nigeria’s shortlet market has disrupted the hospitality business in terms of the volume and value of transactions it is taking from the conventional hotels.

Subsequently, Daily Trust analyses the reason behind the rising demand for serviced apartments in the country.

Cost-effective

Serviced accommodation is most often negotiated in comparison to hotels and other similar service providers with fixed rates. This is a particular incentive for businesses if they know their employees are required to be in one location for an extended period of time. As such, going for serviced accommodation will likely be a more economical option compared to staying in a hotel.

Superior facilities

It has been observed that serviced apartments do not only offer competitively priced options, they also offer tenants benefits for high quality interior attributes including pleasant living areas, fully functioning kitchens and luxuriously finished spaces. They give a comfortable option for extended travel stay away from home.

Majority of serviced apartments come with fast WiFi, swimming pool, fully furnished kitchen, among others which is no match to what is available in most hotels.

Conventionally, hotel rooms comprise of a limited open bedroom area with a separate bathroom, whereas serviced accommodation resembles modern and homely apartments with various spaces.

Choice locations

Serviced apartment buildings are strategically placed in and around areas of importance with easily links to key areas like airport or government institutions. This ensures people who come on leisure or business visits commute easily and remain connected to the rest of the city at all times.

Private experience

Additionally, most corporate organisations see serviced accommodation as a viable solution due to the favourable customer experience as it allows tenants to have their own space that can be comfortably lived in for short or long periods of time.

It presents the ‘home feeling’ to occupants as they can prepare meals, working from a productive space and winding down after work in a comfortable living area.

Speaking to Daily Trust on the rationale behind the serviced accommodation attraction, a real estate expert, Bashir Aliyu, noted that “For investors, the rise in demand for serviced properties in Abuja, Lagos, Port Harcourt and other cities means that investors can earn significant returns on their investments by renting out their properties on a short-term basis.

Additionally, serviced properties are often more profitable as they can be rented out to multiple tenants throughout the year. With the predicted boom in the economy, the returns in serviced apartments are expected to be higher than ever before.

“The rise in demand for serviced properties is also driven by the growing number of online platforms that make it easier for property owners to list and rent out their properties. Dedicated websites have made it easier for travelers to find and book short-let properties, and have also made it easier for property owners to manage and rent out their properties. With the increasing adoption of technology, it has become easier for property owners to market and rent their properties,” he said