Optimal Size for ROI: Which Areas Rent Out Faster

Why floor area matters for ROI 🧾

Floor area affects demand, rent level, and vacancy time. When buying to rent, square meters are important, but layout, location and tenant profile often matter more than raw size.

Key factors to consider

• Target tenant: tourists, students, professionals, families.
• Property type: studio, one‑bed, two‑bed, duplex.
• Location and access: city centre, beach, transport, services.
• Layout: separate bedroom, balcony, storage, bathroom count.
• Fit‑out and furnishing costs.

Which sizes rent faster — pragmatic overview 🏘️

Studios and compact one‑beds (example ranges: ~25–40 m²)

Pros:

• High demand among tourists and young professionals.
• Low refurbishment and furnishing costs.
• Easier to price competitively and fill quickly.

Cons:

• Lower absolute monthly rent (though percentage ROI can be attractive).
• Narrower tenant pool—not ideal for families.

Best for: central or seaside locations, near universities or business hubs.

Standard one‑ and two‑bedrooms (~35–70 m²)

Pros:

• Balanced appeal for long‑term renters: couples, small families, employees.
• Lower vacancy risk compared with larger units.

Cons:

• Higher initial investment than studios.

Best for: investors seeking steady long‑term income and lower downtime.

Larger apartments (70 m² and above)

Pros:

• Higher absolute rent and appeal to families or remote workers.

Cons:

• Smaller tenant pool and potentially longer vacancy periods.
• Higher maintenance costs.

Best for: family‑oriented neighbourhoods and premium segments.

How to evaluate area for speed of renting and ROI ✅

1. Segment the market by tenant profile: tourists/students prefer compact, fully furnished units.
2. Compare expected ROI in percentage terms, not only absolute rent. A small unit can show higher ROI percentage with lower capital outlay.
3. Check supply in the neighbourhood: how many comparable listings exist and how quickly they are occupied.
4. Factor seasonality: seaside areas may rent small units quickly in season but see longer vacancies off‑season.
5. Prioritise smart layout — a well‑planned small apartment often rents faster than a poorly laid out larger one.

Practical tips to speed up renting ✨

• Furnish for function: sofa‑beds, foldable tables, built‑in storage.
• Keep decor neutral and appliances reliable — this boosts perceived value and reduces tenant churn.
• Offer a small workspace or balcony — attractive for long‑term renters.
• Invest in quality photos and clear listings — great images lead to faster bookings.
• Be flexible with lease terms: offer both short‑term and long‑term options depending on season.

Example scenarios

• Fast turnover with minimal investment: compact studio in a tourist or central area.
• Stable income, reduced vacancies: one‑ or two‑bedroom in a residential neighbourhood.
• High monthly rent but higher vacancy risk: large apartment in premium areas.

Risks and how to reduce them ⚠️

• Overestimating demand — research local listings and actual occupancy patterns.
• Wrong price point — test and adjust rental price quickly based on market feedback.
• High operating costs — include maintenance, utilities and occasional refurbishment in projections.

Conclusion

Optimal floor area depends on your investment goal: fast ROI often comes from compact, well‑designed and well‑located apartments. For steady returns with less downtime, choose one‑ or two‑bedroom units in residential areas.

If you want help choosing the right size and neighbourhood for your strategy, contact BuyHome — we’ll shortlist options and model expected payback times for you. 📞🏡

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