As the year draws to a close, AltoVita’s Q4 2024 Corporate Accommodation Report captures a nuanced view of the corporate housing landscape, highlighting trends and insights that are set to shape the industry into 2025. Here, we explore the latest in market dynamics, accommodation preferences, and emerging priorities among corporate clients globally.
Key Market Trends
1. Rise in Long-Term Stays
Corporates are increasingly opting for extended stays as remote and hybrid work make flexible accommodations essential. The average length of stay (ALOS) in corporate housing rose by 16% this quarter, driven by a preference for short-term assignments over permanent relocations. Major cities like London, Dubai, and Munich have seen this shift especially among employees who value the home-like amenities and extended-stay comfort.
2. Surge in Co-living Spaces
Younger professionals and interns are fueling demand for co-living spaces, with shared amenities like kitchens, lounges, and gyms. This trend reflects a growing preference for community-centric housing that combines private living with social interaction, especially in cities like Berlin and New York.
3. Focus on Wellness-Oriented Housing
Wellness-focused accommodations continue to gain traction, with amenities such as yoga studios, fitness centres, and wellness programs becoming popular. This trend is particularly prominent in high-pressure hubs like San Francisco and Zurich, where corporations aim to foster well-being to support productivity and reduce burnout.
4. Flexible Leasing Options
In response to the evolving needs of the modern workforce, providers are offering flexible leasing models like month-to-month agreements. Corporations in regions such as Tokyo, New York, and Sydney benefit from reduced commitments and comfortable living arrangements that support hybrid work environments
As we move into the final quarter of 2024, the market for corporate accommodations is revealing distinct patterns. A more flexible and competitive environment provides corporate travellers with cost efficient options, with lead times for bookings extending in key regions. However, high demand in specific markets—especially for more extended stays—means negotiation remains a critical factor in securing favourable pricing, be it through capped rates and negotiated flat rates.
Pricing and Demand Across Regions
Europe
Serviced apartments in Europe experienced varying rates this quarter. In London, the average daily rate (ADR) dropped by 11%, reflecting increased availability and negotiation flexibility. However, demand spikes for extended-stay properties in Amsterdam and Dublin signal potential tightening as winter approaches.
Middle East
The Middle East saw a 20% ADR increase in cities like Riyadh due to limited supply and high demand. Riyadh and Dubai's corporate housing markets are particularly competitive, with luxury, long-stay accommodations favoured by sectors expanding under Saudi Vision 2030.
North America
ADR trends showed mixed results, with New York City witnessing a 5% decrease despite sustained demand. Notable events like CES in Las Vegas and COP29 in New York have boosted corporate demand, but budget constraints continue to shape rate negotiations and booking lead times.
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Sustainability and Smart Technology Integration
Sustainability has become a core focus, with corporate clients increasingly seeking eco-friendly properties. AltoVita reports heightened demand for properties that adhere to green standards, such as those with renewable energy and waste-reduction initiatives. Furthermore, the integration of IoT and smart home technology is on the rise, especially in tech-forward cities where cybersecurity remains a priority.
Legislative Impacts
Stricter regulations across markets are reshaping the corporate housing landscape. For example, Spain and Greece have introduced licensing requirements for short-term rentals to protect housing stock, driving demand for licensed corporate accommodations. This shift could limit short-term availability in cities like Barcelona, requiring corporate travellers to explore longer-stay options.
Preparing for the Year Ahead
AltoVita’s Q4 insights underscore several strategies for corporate travel and mobility managers:
- Early Booking: As lead times extend in high-demand regions, early bookings can secure competitive rates and prime availability.
- Flexible Locations: In high-demand regions such as the Middle East, considering alternative neighbourhoods can optimise costs.
- Emphasising Sustainability: Prioritising eco-friendly properties helps companies align with ESG goals while meeting travellers' accommodation preferences.
With these trends in focus, AltoVita is positioned to support clients navigating a dynamic market, delivering insights and solutions that align with corporate goals. As we look forward to 2025, flexibility, sustainability, and innovation will continue to shape the corporate accommodations landscape.
