Real estate

Micro-apartments: Is it worth buying an apartment up to 35 m²?

3 September 2026 / Regent Split

Summary

Micro-apartments — apartments up to approximately 35 m² — are becoming increasingly prevalent on the market, especially in large cities, attracting both buyers and investors with their lower overall price and strong rental demand. Profitability, however, is not straightforward, and the shortest answer is: it depends on the purpose, location, and buyer's profile. A micro-apartment typically has a higher price per square meter than larger apartments, but a lower overall price and often a good rental yield, despite limitations in comfort and a more limited pool of future buyers. In this guide, we break down the advantages, risks, and for whom a micro-apartment makes sense.

Key facts

A micro-apartment is a compact apartment up to approximately 35 m²; the term has no legal definition, but is a market term.
It has a lower total price, but typically a higher price per square meter than larger apartments.
As an investment, it can yield a good rental return with a lower initial cost, but only with a net calculation.
Liquidity depends on the location — in the city it is easily rented and sold, elsewhere it is more difficult.
Living in a micro-apartment carries real limitations of comfort and space.
Profitability crucially depends on the purpose, location, and buyer's profile.

Micro-apartments are one of the more prominent trends in the real estate market, driven by rising prices, changes in lifestyle, and an increasing number of single-person households. As buying larger apartments becomes increasingly difficult, especially for young people and first-time buyers, micro-apartments — compact apartments up to approximately 35 m² — emerge as a more affordable option. At the same time, investors see an opportunity in them due to lower entry prices and stable rental demand in cities.

However, a lower overall price doesn't automatically mean a good purchase. Micro-apartments carry their own set of advantages and limitations that differ from those of larger apartments, and "whether it's worth it" depends on who is buying, why, and where. What might be a smart first step into the market or a solid investment for some, for others could be too cramped a compromise or a riskier purchase. In this guide, we soberly dissect the economics of micro-apartments — price per square meter, rental yield, liquidity — as well as their practical limitations and the profile of the buyer for whom it truly makes sense.

What is a micro-apartment and why is it trending

A micro-apartment is a very small apartment, typically up to about 35 square meters, designed to provide basic living functions in a small area — sleeping, cooking, living, and a bathroom. These are compact studio apartments or small one-bedroom apartments where every meter is utilized. It's worth noting that "micro-apartment" does not have a legal definition in Croatia — it's a market term, not a legal category. The 35 m² threshold is not arbitrary: regulations governing "adequate housing" refer specifically to about 35 m² of usable area for one person, so this is a realistic framework for an apartment intended for a single person or a couple without extensive demands.

The trend of their increasing presence is not accidental but a response to several simultaneous phenomena. The first driver is price: as real estate prices rise, the total price of an apartment becomes the main obstacle to purchase, and a micro-apartment offers it at a lower cost. The second is demographic and lifestyle-related — there are more single-person households, singles, young professionals, and students who neither need nor prioritize large spaces. The third is urban: in large cities, where land is expensive and demand is high, small apartments enable living in locations that would be inaccessible in a larger format. The sum of these factors has made the micro-apartment a recognizable category for both buyers seeking a home and investors.

Professional advice: Before you even consider a micro-apartment, clarify whether your goal is living, a first entry into the market, or an investment — because the same small square footage "stands" very differently depending on the purpose, and it is precisely the purpose that determines whether it is a good decision.

Price: lower total, higher per square meter

One of the most important, and most often misunderstood, aspects of a micro-apartment is the relationship between total price and price per square meter. A micro-apartment has a lower total price — because the area is small — and this is precisely what makes it accessible to those who cannot afford a larger apartment; this is its main and real advantage when entering the market. However, the price per square meter for micro-apartments is typically higher than for larger apartments in the same location. The reason is that some elements of an apartment (bathroom, kitchen, installations) are fixed and exist regardless of size, so for a small area, their cost is distributed over fewer square meters. In addition, strong demand for small, affordable units keeps their price per meter high.

For the buyer, this means paying "more per square meter" for a micro-apartment in exchange for a lower total price and market access. Understanding this trade-off is crucial for a realistic assessment: a micro-apartment is profitable due to its low total price and purpose, not because it is "cheap per square meter" — because it is not. We write about how the value of real estate is determined in general in the guide real estate valuation. It is also worth knowing a practical financing specificity: banks sometimes approve housing loans for very small apartments more cautiously or require a larger down payment, so it is worth checking the conditions with the bank before counting on a loan.

Professional advice: Do not compare a micro-apartment with a larger apartment by price per square meter, but by total price and purpose — a micro-apartment almost always loses in price per m², but gains in accessibility and total amount. Only when you separate these will you see the true value.

Investment, Yield, and Liquidity

For investors, the main attraction of a micro-apartment is the combination of a low entry price and a good rental yield. Due to the lower total price, entering an investment is more accessible than with larger apartments, and the rent for small apartments, although lower in absolute terms, is often relatively high compared to the investment — so the yield (the ratio of annual rent to apartment price) can be favorable. In cities with strong rental demand, especially among students, young professionals, and singles, micro-apartments easily find tenants; in coastal cities, some demand also comes from short-term tourist rentals, which further alters the calculation.

However, here too, a comprehensive calculation, not just gross yield, is needed. The calculation includes maintenance costs, reserves, taxes, and periods when the apartment is not rented, as well as higher tenant turnover (shorter leases, more frequent move-ins and move-outs). It should also be borne in mind that for small apartments, fixed monthly costs, such as reserves and utility connections, are relatively higher per square meter, so the yield should only be considered after these. In addition, the liquidity of a micro-apartment — how easily it is sold or rented — is a two-sided story that crucially depends on the location. In large cities and sought-after neighborhoods, micro-apartments are very liquid because there is a constant, broad demand for both rental and purchase; the small square footage is an advantage here as it expands the circle of interested parties to everyone for whom the total price is the main criterion. Outside such areas, the circle of buyers is narrower — families look for larger apartments — so a micro-apartment can be harder and slower to sell.

Professional advice: When considering a micro-apartment as an investment, calculate the net, not gross, yield — include maintenance, reserves, vacant periods, and higher tenant turnover. A micro-apartment in the right location can be an excellent investment, but only a realistic calculation shows if this particular one is.

Location as a Decisive Factor

Throughout almost all aspects of micro-apartments, the same thread runs — location decides. What makes a micro-apartment a good purchase or investment is almost always linked to where it is located. In a sought-after city location, near universities, business centers, transport links, and amenities, a micro-apartment has strong rental demand, good resale liquidity, and a meaningful role as a home for a single person or a couple who value location over space. In the Croatian context, these are primarily larger cities like Zagreb, Split, and Rijeka, and university centers like Osijek, where a steady influx of students and young professionals maintains demand. Here, small square footage works in the buyer's favor.

In a weaker location, the same advantages disappear: rental demand is lower, resale is harder, and a low price reflects a poor location more than an opportunity. Therefore, one should be cautious about micro-apartments that appear to be an opportunity solely due to their low price but actually suffer from a bad location, poor layout, or weak demand — a low total price can conceal weaknesses that only become apparent when attempting to rent or resell. Besides location, a micro-apartment also entails a narrower circle of future buyers (singles, couples, investors) and sensitivity to changes in demand, so when assessing, location should not be viewed as just one factor, but as the decisive factor that determines whether all others — yield, liquidity, value — will function at all.

Professional advice: Rather pay more for a small apartment in an excellent city location than less for one in a poor location — and before buying, imagine how easily you would sell it in a few years in that exact location, because that's what separates an opportunity from a trap.

Limitations of Living in a Small Space

If a micro-apartment is bought for personal living, one needs to be realistic about the limitations that small square footage brings. Up to 35 m² of space is sufficient for the functional life of one person or a couple without great demands, but not for everyone. Storage space is limited, and options are more modest for those who work from home and need a workspace, for guests, or for any expansion of living needs. Life in a micro-apartment requires discipline regarding possessions and embracing a compact lifestyle.

These limitations are not necessarily a drawback — for many singles and young professionals, a compact, easy-to-maintain space in a good location is precisely what they want. However, it's important that the decision is conscious: a micro-apartment suits a specific lifestyle and phase of life, and less so those whose needs might expand, such as a couple planning a family or someone who needs space for work. Good design can greatly help make a small space functional and pleasant, about which more in our guide on decorating a small apartment, but it cannot remove the inherent limitations of the square footage.

Professional advice: If you are buying a micro-apartment for yourself, honestly assess whether it will suit you in a few years, not just now — it's excellent for a certain phase of life, but if your needs expand, it quickly becomes too cramped.

Who Benefits from a Micro-apartment

Since the profitability of a micro-apartment crucially depends on the purpose and buyer profile, the best conclusion is not "is it worth it?", but "for whom is it worth it?". A micro-apartment makes the most sense for several profiles: for singles and young professionals for whom a compact space in a good city location perfectly suits their lifestyle; for those entering the market for the first time for whom a low total price is a way to become homeowners at all; and for investors seeking an accessible investment with a good rental yield in a sought-after location. We write about the general decision of renting versus buying in the guide first property: rent or buy.

On the other hand, a micro-apartment is a weaker choice for those whose space needs may expand — couples planning a family, those who need a workspace or guest space — as well as for buyers in locations where demand for small units is not strong. It is crucial that the decision stems from the actual purpose, location, and life stage, not just the mere attractiveness of a low price. A buyer who knows why and where they are buying a micro-apartment will easily judge whether it is a smart purchase for them or a compromise they do not want.

Professional advice: Before deciding, prioritize your needs and realistically assess the purpose, location, and life stage — a micro-apartment systematically rewards singles, first-time buyers, and investors in good locations, and penalizes those who need space or growth. Your own profile immediately tells you which side you are on.

How Regent Can Help You

Assessing whether a specific micro-apartment is worthwhile requires a sober judgment of location, price, yield, and liquidity, and we can help you with that. Whether you are looking for a first home, a compact apartment in a good location, or an investment with a good rental yield, we help you assess the true value and potential of a micro-apartment and avoid those that are "opportunities" only on paper. For advice and an offer tailored to your purpose, see what buying with Regent looks like or contact us.

Frequently Asked Questions (FAQ)

What is a micro-apartment?
A micro-apartment is a very small apartment, typically up to about 35 m², designed to provide basic living functions in a small area — sleeping, cooking, living, and a bathroom. These are compact studio apartments or small one-bedroom apartments. The term does not have a legal definition in Croatia but is a market name for the smallest category of apartments.

Is it worth buying a micro-apartment?
It depends on the purpose, location, and buyer profile. A micro-apartment has a lower total price and can bring a good rental yield, but also a higher price per square meter and a narrower circle of future buyers. It is most beneficial for singles, first-time buyers, and investors in sought-after city locations, and less so for those whose space needs may expand.

Why do micro-apartments have a higher price per square meter?
Because some elements of an apartment (bathroom, kitchen, installations) are fixed regardless of size, so for a small area, their cost is distributed over fewer square meters. In addition, strong demand for small, affordable units keeps the price per meter high. Therefore, a micro-apartment is profitable due to its low total price and purpose, not because it is cheap per square meter.

Is a micro-apartment a good investment?
It can be, due to its low entry price and often favorable rental yield in sought-after locations. However, the net yield should be calculated — including maintenance, reserves, vacant periods, and higher tenant turnover — and it should be borne in mind that profitability crucially depends on the location. With a realistic and comprehensive calculation, a micro-apartment in the right location can be an excellent investment.

For whom is a micro-apartment not a good choice?
For those whose space needs may expand — couples planning a family, those who need a workspace or guest space — and for buyers in locations where demand for small units is not strong. In these cases, space limitations or poor liquidity outweigh the advantage of a low price.