Compact housing: what standards are considered normal?

The popularity of compact housing

Compact housing is becoming increasingly popular among various groups of the population. It is especially favored by those who frequently change their place of residence, start families later in life, or live as couples. Additionally, small housing attracts seasonal workers, students, and migrants who are looking for temporary or affordable living options.

Demand response

Construction companies are responding to the growing demand by implementing projects aimed at creating compact housing. For example, in some cities, complexes have been built that include studios of 23 square meters and one-bedroom apartments up to 40 square meters. These properties sold out very quickly due to their convenient locations and affordable prices during the construction phase.

Environmental cleanliness and convenience

Modern compact homes are increasingly chosen for their environmental friendliness and the opportunity to connect more closely with nature. These homes offer residents a minimum of excess, making them more appealing to those who value simplicity and convenience in everyday life.

International trends

Compact housing also finds its supporters beyond the country's borders, especially in the USA, Canada, Germany, and Australia. In these countries, people are increasingly opting for compact housing options due to their practicality and economic benefits.

Features in different countries

In some countries where family traditions are strong and housing prices are lower, the demand for small apartments is not as high. For example, in Spain, preference is given to more spacious apartments with separate bedrooms and living rooms, while compact apartments are more commonly found in older buildings. When purchasing such housing, it is often necessary to plan for renovations, even if they are just cosmetic.

Micro-housing in Spain and other Mediterranean countries

The share of small residential units in Spain and neighboring Mediterranean countries is low. In Spain, about 1% of apartments have an area of less than 30 square meters. Most of these properties can be found in Madrid, as well as in the Canary Islands - a popular resort region. A characteristic feature of Spanish apartments is the very small bedroom, which can be as little as 5-8 square meters, where almost all the space is taken up by the bed, and besides it, there is only room for a built-in wardrobe.

Micro-apartments in Spain and France

The situation with micro-apartments in Spain and France is very interesting. These homes usually look well-maintained, despite their small size. The design of the apartments is carefully thought out to ensure comfort for the residents. For example,apartment in NiceIt has an area of only 26 square meters, but it looks bright and spacious. Another example -apartment in Spainan area of 30 square meters, but with a separate bedroom.

The variety of compact housing in tourist countries

In countries where tourism plays a key economic role, affordable housing is being built in resort areas. For example, in Bulgaria, small apartments are popular and make up a significant portion of new constructions. In Egypt, inexpensive housing is also in demand, especially in Hurghada.

Price and appearance of real estate

The value of a property is determined by its appearance: budget options often feature old furniture and minimal appliances. Small kitchens are often combined with the living room and may not be fully equipped.

Proposals in different countries

Thailand offers a variety of compact housing options, both in the economy class and premium segments. Locals are accustomed to a minimalist lifestyle, often without a separate kitchen.

In Western and Northern Europe, the demand for small apartments is driven by family sizes and a constant influx of students and migrants. For example, in Berlin, micro-apartments are seen as an attractive investment opportunity that is affordable, with rental prices comparable to more spacious housing.

Choosing housing in Finland

In Finland, you can find small properties in any segment of residential real estate, considering the popularity of single living.

In the search for optimal space utilization, modern cities are increasingly turning to small living spaces. In Finland, for example, 80% of new studios are limited in size. To address this issue, apartment buildings offer shared spaces where individual storage units and washing machines can be placed, thus preventing clutter in the apartments. Even in small areas, such as 30 square meters, it is possible to create comfortable living conditions and even install a personal sauna.

Compact housing is currently being built all over the world. In Poland, compact homes are actively developing in megacities, where high demand for housing is driven by the presence of migrants and the workforce. Japan, known for its high population density, also offers a significant number of small apartments in cities like Tokyo, where about 9% of residential properties fall into this category. Even IKEA has purchased a ten-square-meter apartment to demonstrate that it is possible to create a cozy living space even in such a small area.

In the United States, micro-housing remains a sought-after solution due to high housing prices, especially in cities like Seattle, Portland, Los Angeles, and San Francisco. Here, small apartments find their place, where every square meter is used to its maximum efficiency. An example is the story of a Manhattan resident who organized her life in a seven-square-meter studio, utilizing every corner for storage and functionality.

Living in a small space encourages people to realize what is truly important for their comfort and coziness. Decor and space organization play a significant role in creating a pleasant atmosphere even in the smallest apartments. Acquiring a small home can be a beneficial decision due to its affordable price and the opportunity to have your own private place, such as at a resort.

Thus, small apartments are not just an economical housing solution, but also an opportunity to live functionally and comfortably, even in a limited space.

Rest in nature

People are increasingly choosing to take vacations for several weeks, spending most of their time outdoors: on beaches, during walks, and on excursions. Therefore, small, affordable accommodations are ideal for temporary stays. Investments in such apartments usually require a small initial outlay, and the rental prices are not significantly different from larger properties. However, success depends on the location. Apartments in historical centers, near universities, and metro stations are the most popular.

Convenience and demand

In many countries, it's also important to consider the number of floors in a building: apartments on the lower and upper floors (without an elevator) are less in demand due to inconvenience. Small housing can be profitable for both short-term and long-term rentals. In Bulgaria, for example, before the pandemic, apartments provided a stable income, but the situation has become less predictable due to the crisis in the tourism sector.

Real estate investments

In Spain, small apartments, although usually purchased for personal use, can become profitable investments under the right conditions. On the Costa Blanca, compact housing on the front line is in high demand due to its attractive location and stunning views from the windows. Such properties promise good rental opportunities.

Variety of offers

In Finland, most apartments purchased for rental purposes are small in size. Compact housing in this country is often rented out on a long-term basis. A key factor for success is choosing a promising property, carrying out quality renovations, and successful management.

Small apartments: who chooses them?

There are several groups of people who prefer to rent small apartments. These include:

• students
• young people with limited finances seeking independence from their parents
• young families without children
• pensioners
• workers and migrants

That is why the demand for such housing is very high in major cities like Thessaloniki and Athens in Greece, Varna and Burgas in Bulgaria, and Warsaw and Wrocław in Poland.

Small apartments as an investment

Kristina Makaryan, a real estate specialist in Greece, notes that small apartments are in high demand, especially among investors looking to obtain a "golden visa." This is a financially advantageous investment. For example, you can buy such an apartment for €60,000 to €70,000 and rent it out for €400 a month. Larger apartments cost around €120,000, but the rent varies from €400 to €500 a month.

Popularity in different countries

Many people who do not plan to start a family in the near future choose micro-apartments as affordable and economical housing for themselves. This trend is observed in various countries:

• In Finland, where singles prefer to live
• In Spain, where large housing is often inaccessible to young people.
• In the USA and other countries where tiny homes are popular among those seeking to save money.

Risks of choosing small-sized housing

When purchasing a small apartment, several risks should be taken into account. One of the main risks is the high costs of repairs. Many small apartments are located in old buildings, so buyers need to carefully check the condition of the property before the transaction and include repair or renovation costs in their profitability calculations.

Anastasia Voloboy, the director of the representation in Russia, emphasizes that when purchasing an apartment in an old building, it is advisable to plan for a major renovation. Often, such buildings lack a ventilation and air conditioning system, which will need to be installed. It is also necessary to carry out work on replacing the flooring, improving sound insulation, and installing double-glazed windows. To enhance the attractiveness of the property in the rental market, it is important to refresh the apartment's appearance, for example, by painting the walls and updating the furniture.

One of the issues with such apartments is the poor layout, often due to historical renovations of old buildings. For example, a small apartment may have many corners, making it difficult to arrange furniture like wardrobes or sofas, even with a relatively low square footage.

Thus, the choice of small-sized housing has both its advantages and disadvantages, and before making a purchase, it is important to consider all aspects related to its condition, layout, and potential costs for improvements.

Problems in new residential complexes

Sometimes developers make mistakes that seriously affect the quality of new residential complexes. For example, some of them create apartments with extremely limited kitchen space or dark rooms and bathrooms where it's difficult to even turn around. These aspects become especially noticeable in the context of fierce competition in the real estate market.

Features of competition in the market

The construction of small residential complexes creates the problem of uniformity in housing. This complicates the rental of such properties. Potential tenants prefer to choose more spacious apartments, even for a small additional rent, or they opt for hotel rooms instead.

Trends in the compact housing market and its tenants

Compact housing is becoming increasingly popular among a certain category of renters. This type of housing often attracts students and those looking for affordable and functional living solutions. However, changes in the real estate market can lead to a loss of income for investors.

The impact of the pandemic and border closures on demand

With the onset of the pandemic, the demand for small apartments near universities has significantly decreased. Students began to prefer remote work and temporarily returned to their parents, which reduced the demand for such housing.

The closure of borders has also had a negative impact on tourist flow. This has become a problem for apartment owners in tourist centers, who are facing difficulties in renting out their properties.

A flexible approach to adapting housing to new conditions

In the context of changing demand, flexibility can become a decisive factor in maintaining profitability. Owners of tourist accommodations are switching to long-term rentals or offering their apartments as workspaces for those who work from home.

The cost of compact housing in different countries

• Bulgaria and Egypt:Tiny studios can be purchased for €10-15 thousand, making them accessible to buyers with a limited budget.
• Spain:In resorts, the prices for micro-apartments start from €40-45 thousand per unit, however, the price can significantly increase for properties with high-quality finishes.
• Greece:The prices for apartments in a compact format have significantly increased, with the minimum rate being €800 per square meter.
• Finland:Compact apartments are popular, and getting a mortgage for them is just as easy as for other types of housing.
• France:In the center of Paris, prices for micro-apartments can reach astronomical levels, making them an incomparably expensive investment.

Conclusions

Compact housing represents an interesting investment opportunity, especially in the context of a changing market. It is important to consider the specifics of demand and to approach it flexibly.

What is small living space?

Small housing is usually considered to be living space of less than 30 square meters. The International Housing Code, for its part, defines a tiny house as a residential unit of no more than 400 square feet (37 square meters).

In American standards, there is often a limitation of 37 square meters. In particular, in New York, for a long time, it was not allowed to create apartments smaller than this size (the requirement was removed from building regulations in 2016). However, in the market of the Big Apple, there are also micro-apartments – their area is about 150 square feet, which is only 14 square meters!

Types of small-sized real estate

Apartments.First of all, these are studios, meaning apartments without internal partitions, where the only separate room is the bathroom. However, classic apartments with one or even two bedrooms can also fit into 30-40 square meters. Such housing is most often built in large cities and resorts.

Apartments.This is housing that is built or purchased specifically for rental purposes. This type includes student dormitories, specialized homes for the elderly, and tourist apartments managed by hotel brands.

Cottages.Standalone houses or townhouses can also be small-sized. This is especially true for summer cottages, as they are not lived in permanently, so one can overlook the size in favor of cost savings, as well as the speed of construction or ease of relocating the dwelling.

Mobile homes.Compact housing can be easily assembled and disassembled by oneself and transported to another location. In particular, this category includes trailers, modular homes, "tiny houses," and other similar options.

Experimental projects.Micro-houses often emerge as a result of design experiments. For instance, in Norway, small "houses on stilts" have been built, rising above the forest. In Seoul, a four-story house for a single family was constructed, with each floor measuring 16 square meters. And in the very center of Paris, an old house was renovated to create designer living space of 25 square meters, but spread over four floors!

Where do micro-apartments and mini-houses come from?

Compact housing in many countries is a legacy of old times. Micro-apartments can be found in the very center of Berlin or London: historic buildings have been remodeled and renovated many times, with owners striving to make the most of every corner. In the modern world, this trend not only preserves cultural heritage and economic resources but also stimulates innovation in urban planning and architecture.

Thus, the future of compact housing promises to be diverse and innovative. This trend goes beyond mere space-saving; it embodies ideas of environmental compatibility and the convenience of living in limited spaces.