Is investing in a studio apartment worth it?

The demand for properties located in the center of large cities has led to the emergence of a new type of construction known as studio apartments, lofts or kitnets. But to know if investing in a studio apartment is worth it , one must consider some factors specific to real estate investments.

Valuing small spaces, more compact, intelligent housing that can accommodate more people in the same space are some of the fundamentals of the real estate market when it comes to constructing buildings full of small homes or studio apartments.

In cities like São Paulo, where there is little space for new construction and the cost of living is high, studio apartments have become popular with construction companies and are spreading throughout the city, attracting the attention of people who like to invest in purchasing real estate to obtain passive income.

However, to know whether investing in a studio apartment is worth it, some factors need to be considered by the potential investor, especially the liquidity of this type of investment, which is not immediate and presents complexity at the time of sale.

Read on to understand whether investing in a studio apartment is worth it, given the new market scenario, and how this type of investment is made.

Studio apartment: The darling of the moment

The profound transformation of society, caused by population growth and changes in the configuration of family structures, is responsible for the increase in demand for small, compact and affordable apartments. Today, the name given to this type of development is studio apartments.

Although considered a property, studio apartments are smaller in both size and value, which can translate into greater liquidity when it comes to disposing of this investment.

In addition to this fact, the income provided by investing in studio apartments is usually attractive, due to the ease of finding tenants to rent the property.

Is investing in a studio apartment worth it?

Now that you know the main characteristics of a studio apartment and why this property is an interesting investment opportunity for a more conservative profile, it's time to find out if it's worth adopting this type of investment.

Buying a property requires a lot of attention to all the bureaucracy involved, with attention to the legality of all documentation and registration at the notary's office.

When it comes to building a studio apartment to rent , the scenario becomes even more complex, with labor, material and equipment costs involved.

When it comes to renting, the fact that it is a smaller property with a lower rental value is a differential that does not prevent this building from remaining empty for a period of time. At that time, all costs of the studio apartment, such as property tax, renovations or fees must be assumed by the owner.

For those who have built studio apartments far from major centers, the rental may not happen quickly and immediately, which leads to a loss of income for the property owner. It is an investment with predictable returns, but there may also be long intervals without returns.

Therefore, when considering investing in studio apartments and evaluating whether the investment is worthwhile, the ideal is to diversify risks and financial analyses, which usually present less bureaucratic options with greater liquidity.

If you want to invest in a studio apartment, you can reduce operational and bureaucratic work, as well as reduce investment risks by hiring professional operators, such as Citas, responsible for renting and purchasing properties for investors.

On our website you can check out the options for studio apartments in the central region of São Paulo and choose the best one for you. If this content inspires you, read more on our blog .

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