A relatively new concept that is taking the real estate industry by storm is small-sized apartment units which can be categorized into studio apartments as well. Considered as lucrative investments with easy entry and exit points, studio apartments are being increasingly favoured by young professionals.
By definition, a studio apartment is a small self-contained unit ranging from 300 to 500 square feet in size. Also referred to as efficiency apartments, they provide the dual benefits of affordability and easy maintenance. The apartment design primarily includes a multipurpose room, kitchen, bathroom and living area. A distinguishing feature of these units is that they do not have any walls delineating the internal spaces. However, depending on individual preferences, provisions for creating temporary partitions are also available.
A major chunk of demand for such small housing units comes from bachelors, young professionals, in-transit executives, expats, newly-married couples, leisure travellers, etc. There are several advantages of opting for studio style apartments. A few of them have been discussed in this article.
Affordability: The single most indisputable advantage of a small-sized house is its lower pricing. If you have just started your professional career, have recently been married, or have moved to a city for a short-term project, then you ideally have two options – rent or buy a house. In most scenarios, people prefer to pay equated monthly instalments (EMIs) on smaller more affordable properties, rather than shelling out huge chunks of money as rent on larger apartments.
The benefit of Lower Stamp Duty and Maintenance: If you decide to buy a studio apartment, besides lower pricing, you will also reap the benefits of lower stamp duty and maintenance costs. The maintenance amount for your house is usually calculated on the basis of floor area. Thus, the smaller the flat, the lesser will be the amount that you need to pay.
The advantage of Location: More often than not, studio apartments are located in premier locations. Therefore, by investing in these units, you will have the advantage of living in close proximity to the economic activity centres of your area.
Lower electricity bills: Another lesser-known benefit of small-sized housing is lower energy bills. Since the overall area is less, the process of cooling or heating the house does not consume too much energy. This helps you save a lot on electricity bills.
High-Return Proposition: Studio apartments are considered profitable propositions since they involve low investment but high yield in terms of rent. Also, when sold they fetch the buyer high-profit margins.
Therefore, small-sized apartments are a new trend that is here to stay as they provide the benefit of a comfortable lifestyle at affordable price points.