Serviced apartments are turning up more and more often in property market reports and in listings aimed at investors. The idea behind them is simple: a real apartment, with the services of a hotel. Let us look at what that means, why it appeals to guests and investors alike, and how it translates to the seaside.
What serviced apartments are
A serviced apartment is a flat that is furnished and ready to move into, with a kitchen, living room and bedroom. You book it like a hotel room, without a long tenancy agreement, and it includes the usual hospitality services:
- regular cleaning and fresh linen;
- guest support, often with a reception or a contact who is always available;
- internet, utilities and bills already included in the price;
- sometimes shared spaces such as a gym, coworking area, laundry or pool.
You may also hear them called apartments with services or residences with hotel services. Closely related formats are the aparthotel, the residence and the condo hotel: what changes is mainly the level of service and who owns the units.
Who stays in them
The format began in big cities for people travelling on business and staying for weeks or months: managers on assignment, consultants, people relocating. It has since widened to include:
- families on holiday, who want space and a kitchen;
- remote workers spending long spells away from home;
- students and researchers staying for a few months;
- people waiting to move into a permanent home.
What they have in common is the same: more space and independence than a hotel room, with no worries about cleaning, bills or maintenance.
Why investors are interested
In recent years industry analyses across Europe have pointed to growing interest from funds and private investors in serviced apartments. There are three main reasons:
- Demand from several directions: the same unit can host holidaymakers, business travellers and long stays. This helps fill the quieter months.
- Professional management: a single operator handles bookings, welcome and maintenance, so the owner does not have to manage anything personally.
- Bricks and mortar: the investor buys real property, not a financial product, and keeps the option to sell.
Like any investment, it has its limits: the outcome depends heavily on the quality of the operator, personal use of the unit is governed by the contract and, if the property is still under construction, build timescales and safeguards matter.
City or seaside: two different ways to invest
In cities, serviced apartments live mainly off business travel. By the sea, demand comes from tourism, and the most common format is the Apart-Hotel: self-contained suites within a property with a reception, pool and services, run like a hotel.
There is also a practical difference. In cities the whole building often belongs to a single institutional investor. In an Apart-Hotel such as those built by the group, on the other hand, individual suites can be bought: a private buyer becomes the owner of a unit registered in their own name, while the management stays shared. Every step is explained in the guide What an Apart-Hotel is and how it works as an investment.
An example on the ocean: Boa Vista
On Boa Vista, in Cape Verde, the group has already built the White Hotel: 4-star, in Sal Rei, all 69 suites sold and now in operation. The new suites have gone and only resales by owners remain.
The new project is The View: 65 suites on the beach at Praia Cabral, with 98% of the suites facing the ocean and prices from €90,000. Each suite has its own kitchenette and living space, and there is also a coworking area for remote workers. The expected return is 5% with 4 weeks’ use of the suite a year, 6% without, guaranteed by contract and bank guarantee. What that guarantee means is explained in the guide Bank guarantee: what it is.
If you are weighing up this format with a specific budget in mind, also read Investing €100,000 in property abroad.
The questions to ask before investing
- Who runs the property and what experience do they have?
- How long does the management contract last and what happens when it ends?
- Which costs remain with the owner?
- Is the return guaranteed? By whom, and in what document?
- How can you use the unit yourself, and for how long each year?
- How do you sell it on?
The same questions apply anywhere. For a full list, use our checklist before buying on Boa Vista.
Frequently asked questions
Are a serviced apartment and an aparthotel the same thing?
They are very similar. Both offer apartments with hotel services. Serviced apartment is used mostly for cities and business stays; aparthotel or Apart-Hotel is used more for holiday properties, with a reception and shared facilities.
Can you buy a single serviced apartment?
It depends on the property. In many cities the whole building belongs to one investor. In an Apart-Hotel such as The View on Boa Vista, by contrast, individual suites are sold and registered in the owner’s name.
What return does a serviced apartment make?
There is no figure that applies to everyone: it depends on location, management and contract. For The View the contract provides for 5% with 4 weeks’ use of the suite a year, 6% without, guaranteed by contract and bank guarantee. Always read the contract and have it checked by a professional.
Do I have to look after the guests myself?
No. In these formats guests, cleaning and maintenance are entrusted to the property’s operator. You can follow your investment from a distance.
Would you like to talk it through with a person?
Book a video call or message us on WhatsApp: we will answer your questions about Boa Vista and The View.
