Micro-apartments: hit or risk? Check before you invest
Location, layout, fees and the rental market. These are the four factors that determine whether a micro-apartment is a hit or an investment risk.
Micro-apartments have been attracting a lot of attention from investors in recent years. Their small size, attractive entry price and potentially high profitability mean that this segment is often seen as an easy way to enter the rental market. At the same time, the micro-format requires more careful analysis, as not every location and not every project will ensure real profitability.
When analysing a micro-apartment, it is worth paying attention to, among other things:
- the location and target rental group, i.e. who will actually be interested in such a space,
- the standard of finish and functionality of the layout, which are crucial in small spaces,
- the demand for rentals in a given city and district, as well as competition in the market,
- fixed fees and maintenance costs, which may affect the final profitability,
- future sale opportunities, i.e. the liquidity of the investment and potential buyer interest.
Micro-apartments can be a good investment strategy if they are well suited to the local market and have a clear rental plan. However, it is worth remembering that in this segment, ‘small’ does not always mean ‘easy’, and profitability often depends on details that are not immediately apparent.
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