How Big Does an Apartment Need to Be?
When building new apartments, the first step is ensuring you are market-led in your approach. While there is no single, one-size-fits-all answer, a good rule of thumb is to aim for apartments around 30 square meters (m2) in size.
Going any smaller than that can make securing the necessary financing to fund the development challenging. Apartments below this size threshold often struggle to qualify for standard mortgage offerings, meaning you’ll have to target cash buyers instead.
There are a few key reasons why 30m2 is considered the minimum viable size for new-build apartments in the UK. Firstly, it opens up a wider range of mortgage products that potential buyers will be able to access. This expands your pool of possible purchasers.
The market has also shown resistance to very small “micro-apartments” under 200 square feet (around 18m2). While these can work in certain urban areas and for specific demographics, they tend to have a more limited buyer pool, often requiring cash buyers.
So by aiming for that 30m2 minimum, you’re giving your future buyers the best chance of obtaining a mortgage and growing your pool of potential purchasers. Of course, the specific size you opt for should ultimately be driven by what the local market demands.
If every other apartment in the area has larger rooms, then you’ll likely need to provide similar sizing to remain competitive. It should be a market-led decision, rather than an arbitrary target.
That said, there is growing interest in compact living spaces, so you may want to consider a range of apartment sizes to cater to different buyer preferences. Just be mindful that going too small can severely limit your financing and resale options.
In summary, the ideal size for a new-build apartment in the UK is largely dictated by what will sell best in your local market. But as a general guideline, 30m2 is considered the lower end of what’s viable, opening up the most financing and buyer options for developers.
Naturally, you may want to go larger than this – perhaps 40m2 or 50m2 – if that aligns better with prevailing apartment sizes in the area. The key is to research your local market thoroughly and let that data guide your decisions on unit sizes.
By taking a rigorous, data-driven approach and focusing on what buyers are truly looking for, you’ll give your new development the best chance of success.