The rise of micro apartments
Category Newsletter: Article
Micro apartments aren't a new concept. In cities like Berlin, Tokyo, and New York, the trend has become entrenched in city life, allowing residents to partake in all the city's amenities more sustainably.
Micro apartments in Cape Town have become popular for the same reason.
These self-contained residences give their owners or tenants freedom, independence, and access to amenities.
These micro apartments are popular with Millennials (born between 1980 and 1996), freelancers, digital nomads, and snowbirds - retirees from warmer climates, wintering in Cape Town.
Professionals are also most drawn to these apartments because they're hassle-free, often allowing them to move with nothing more than a suitcase and a few personal effects.
What are Micro Apartments?
Micro apartments range from 20m2 to 60m2. The space is typically a studio or one-bedroom apartment that prioritizes open-plan living to maximize space.
Although studio apartments have existed for as long as people have built vertically, the term "micro apartment" demonstrates the features and amenities offered by such a space.
Typically, these apartments have all the amenities a resident could expect from a larger apartment, most noticeable in the kitchen and living space.
Where the traditional studio or bachelor pad would have a bed - that doubles as a living space - and a kitchen that is only useful for reheating takeaways, a micro apartment has a hoard of amenities:
Full-Size Kitchen Appliances
The most notable difference between the micro-apartment and traditional studio apartment is the full-size appliances.
Rather than a two-plate stove or mini kitchen and mini fridge, a micro apartment would have a built-in 70-litre oven and four-plate stove.
Creative Storage Spaces
Downsizing can be a part of calling a micro apartment home. But the modern micro apartment doesn't always make downsizing a necessity. Creative storage takes up far less space allowing residents to store their belongings.
Innovative Use of Space
Micro apartments are meant for living, unlike some studios that are often not intended for hosting guests.
The innovative use of space - which can include modular elements - enables residents to have a spacious living area, perfect for guests.
These modular elements and multifunctional furniture also make the unit appear more spacious.
What is Causing the Rise of Micro Apartments?
Cape Town's rise in micro apartments has been prompted by the city's growing population of young professionals, skyrocketing rents, and the Mother City's unparalleled beauty.
Location
Micro apartments in Sea Point, Green Point, and the City Centre are popular because they have unparalleled access to the finest the Mother City has to offer: fine dining, bustling nightlife.
Low Cost
Typically getting this type of access to the finest the city offers comes at a premium. But the smaller space means these apartments are more cost-effective.
Smart Living and Amenities
Micro apartments also offer their residents an aspirational lifestyle that extends beyond the four walls of their apartments.
Communal spaces are the backbone of micro apartments and enable residents to enjoy space beyond their apartments.
Recreational spaces like resident lounges, gyms, a pool, a braai area, and casual dining at restaurants abound in micro apartments.
Many micro apartments also have work pods and co-working spaces.
How Investors Can Leverage Micro Apartments
Although micro apartments are aimed at first-time buyers, the primary demographic is investors. Investors can purchase the unit and expect to earn R12,000 or more for a 30-square metre space.
Investors can guarantee that kind of rent by doing the following:
Furnish the Unit
To avoid damage to the space by tenants attempting to move in the incorrect sized furniture, make it easier for them by furnishing the apartment.
Furnishing the space also means you can attract young professionals who want lifestyle conveniences.
Some micro apartments have storage spaces where tenants can store their furniture - if they have any.
Offer Free Wi-Fi
Differentiate your apartment from others by adding features that would benefit your tenant. You can work Wi-Fi into the cost of the rent.
Unlimited fibre can start at a reasonable R800 a month but could make the apartment more desirable as it eliminates an expense and adds to the all-inclusive lifestyle.
Rely on Your Real Estate Agent to Attract the Right Tenant
Getting R12,000 or more a month in rent for a micro apartment is unattainable for most owner landlords but is commonly obtained by real estate agents, who have plenty of marketing and vetting resources that aid in acquiring the millennial renters that are poised to pay a premium for convenience and amenities.
Provide a Parking Space
Despite the City Centre, Green Point, and Sea Point having a functioning public transport network and the use of Uber, Bolt, and InDrive being second nature for most, a parking space is still a selling point for tenants.
On-street parking isn't always a reliable or safe option and could hike up the cost of the tenant's car insurance. Some tenants will have to spend on car storage, which you can include in the rental or offer at an additional charge.
But having a parking space as a feature will attract more young professionals.
As there's less development space available in the City Centre and Atlantic Seaboard, with even greater demand for rentals, the micro-apartment trend shows no signs of slowing down.
Author: Coastal Property Group
