Furnished Apartment Rentals Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Furnished Apartment Rentals market is estimated to be valued at USD 23.7 billion in 2025 and is expected to reach USD 43.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.1% from 2025 to 2032. This robust growth reflects increasing demand for flexible and convenient housing solutions driven by urbanization, rising remote work trends, and a growing preference for short- to medium-term stays among business travelers and millennials.

Current market trends indicate a strong shift towards technology-enabled platforms that simplify the process of finding and booking furnished apartments. Additionally, the rise of digital nomadism and increasing corporate relocation packages have bolstered demand. Sustainability and smart home features are also becoming key differentiators, attracting environmentally conscious renters. These evolving consumer preferences combined with innovative service models are shaping the future landscape of the furnished apartment rentals market.

Segmental Analysis:

By Type: Serviced Apartments Lead Due to Enhanced Convenience and Full-Service Offerings

In terms of By Type, Serviced Apartments contribute the highest share of the furnished apartment rentals market owing to their comprehensive service model and convenience. These apartments provide fully furnished living spaces combined with hotel-like amenities such as housekeeping, concierge services, and on-site facilities, making them especially attractive to travelers seeking both comfort and flexibility. The rising demand from business and leisure travelers who prefer an extended stay with the familiarity of home comforts drives this segment's dominance. Additionally, serviced apartments cater to the growing need for privacy and independence in comparison to traditional hotel settings. Their strategic locations in urban centers and business districts further enhance their appeal by offering easy access to workplaces and key city attractions. The integration of digital check-ins and personalized guest services also contributes to their popularity, catering to tech-savvy users expecting seamless experiences. With a trend toward work-from-anywhere and extended travel periods, serviced apartments fulfill the evolving lifestyle demands of modern renters, thus propelling their sustained leadership within the furnished apartment rentals market.

By End User: Business Travelers Dominate Due to Flexibility and Professional Needs

In terms of By End User, Business Travelers hold the largest share in the furnished apartment rentals market, primarily driven by their need for flexible, comfortable accommodations during work-related trips. Unlike short hotel stays, business travelers often require lodging with kitchen facilities, workspaces, and a homelike environment to maintain productivity and convenience over longer durations. The increasing prevalence of corporate travel and project-based assignments in global industries feeds this demand, as does the push for cost-effective yet high-quality accommodation solutions. Furnished apartments offer an ideal balance, combining privacy and scalability with amenities that support remote work or client meetings. Moreover, companies often prefer housing employees in serviced or extended stay apartments to enhance employee satisfaction while managing travel expenditures efficiently. With the expansion of sectors such as IT, consulting, and finance, which frequently involve travel to different cities or countries, business travelers drive consistent and growing demand in this segment. Flexible leasing terms and the ability to customize stay durations also make furnished apartments particularly appealing for this user base, reinforcing their dominant position.

By Booking Mode: Online Platforms Lead Owing to Convenience and Wide Accessibility

In terms of By Booking Mode, Online Platforms command the highest share of the furnished apartment rentals market, fueled by the increasing digitalization of travel services and consumer preference for effortless access to booking options. These platforms aggregate multiple listings, offering diverse choices in terms of location, type, price, and amenities, enabling users to compare and select accommodations that best meet their needs. The convenience of browsing reviews, viewing detailed photos, and securing instant bookings enhances user confidence and satisfaction. Additionally, the mobile-friendly interfaces and real-time availability updates cater to the needs of modern travelers who prioritize speed and efficiency. Online platforms also support flexible cancellation policies and secure payment gateways, which further encourage adoption across various end users such as business travelers and tourists. The rise of technology-driven travel habits, including last-minute bookings and personalized recommendations powered by AI, positions online platforms as the preferred booking mode in this segment. Furthermore, pandemic-related shifts toward contactless transactions and digital interactions have accelerated this transition, solidifying their leading market share in the furnished apartment rental ecosystem.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Furnished Apartment Rentals market is driven primarily by a well-established real estate ecosystem, sophisticated infrastructure, and mature hospitality industries. Key factors include a high demand from corporate travelers, expatriates, and students, supported by a robust leasing and rental regulatory environment that encourages long-term furnished rentals. Government policies in the U.S. and Canada often promote flexible housing solutions through initiatives that support business travel and temporary workforce accommodation. Additionally, the presence of numerous multinational corporations and burgeoning tech hubs creates sustained demand for furnished apartments. Notable companies such as Oakwood Worldwide, Sonder, and Blueground have significantly contributed to the market's maturity, pioneering platforms that merge technology with high-quality, fully furnished rental offerings, positioning North America as the leader in this segment.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific region exhibits the fastest growth in the Furnished Apartment Rentals market, propelled by rapid urbanization, increasing cross-border business activities, and a rising middle class seeking flexible living arrangements. Governments in countries like India, China, and Singapore have implemented favorable policies to attract foreign investment, alongside developing smart cities that enhance infrastructure and connectivity. This, combined with a growing gig economy and digital nomad populations, fuels demand for short to medium-term furnished apartments. The dynamic nature of the region's business environment and tourism industry further accelerates expansion. Key players such as Nestaway, OYO Life, and Livspace have focused on leveraging technology and localized services to capture underserved urban markets across this region, driving widespread adoption.

Furnished Apartment Rentals Market Outlook for Key Countries

United States

The United States' market benefits from an extensive network of corporate clients and transient professionals requiring flexible, fully furnished accommodations, especially in cities like New York, San Francisco, and Los Angeles. Major players such as Oakwood Worldwide and Sonder have established comprehensive portfolios that emphasize upscale amenities and tech-enabled booking processes. The government's regulatory framework generally supports tenant rights and streamlined leasing practices, contributing to market stability.

Germany

Germany's market is characterized by strong rental protections and a high percentage of the population living in rented homes, fostering a fertile environment for furnished apartment rentals. Cities like Berlin and Munich attract international students and professionals seeking furnished living spaces. Companies such as HomeCompany and Wunderflats have innovatively tapped into this environment by offering furnished rentals that cater to expatriates and those on temporary work assignments, supported by digital platforms that enhance convenience in leasing.

China

China continues to lead Asia Pacific's furnished rentals arena, supported by its rapid urban expansion and increasing international business presence, particularly in cities like Shanghai and Beijing. The government's emphasis on urban development and housing reforms facilitate greater supply of serviced apartments. Leading companies such as Ziroom and Yhouse are reinventing furnished rental models by integrating smart home technology and flexible leasing tenures, thus aligning with evolving tenant expectations.

India

India's market is transforming quickly, supported by a youthful demographic and rising demand from IT professionals and overseas returnees requiring flexible living solutions. Government initiatives aimed at urban housing development and ease of business have led to improved infrastructure in metropolitan areas like Bangalore, Mumbai, and Delhi. Companies such as Nestaway and CoHo focus on community-based living solutions, blending affordability with furnished options, and leveraging technology for seamless tenant management.

United Arab Emirates

The United Arab Emirates, particularly Dubai and Abu Dhabi, is a hub for expatriates and business travelers, with its open economy and strategic global connectivity. Government policies encouraging foreign investment in real estate and tourism bolster demand for furnished apartments, making the region highly attractive. Companies like DAMAC Properties and The First Group offer luxury serviced apartments that provide high-end amenities tailored to international clientele, significantly impacting the market by combining hospitality with residential rental services.

Market Report Scope

Market Segmentation

Type Insights (Revenue, USD, 2020 - 2032)

• Serviced Apartments
• Rental Apartments
• Corporate Housing
• Extended Stay Apartments
• Others

End User Insights (Revenue, USD, 2020 - 2032)

• Business Travelers
• Tourists
• Expatriates
• Students
• Others

Booking Mode Insights (Revenue, USD, 2020 - 2032)

• Online Platforms
• Offline/App-based Agents
• Direct Leasing
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Oakwood Worldwide
• The Ascott Limited
• Sonder Holdings Inc.
• AKA United
• Bridgestreet Global Hospitality
• Synergy Global Housing
• Domio
• Staycity Group
• Zeus Living
• The Blueground
• Lyric
• AKA The Apartments
• National Corporate Housing
• Furnished Quarters
• Nestpick
• Rhombus Partners
• Zeus Corporate Housing
• Churchill Living