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Studio Apartments – Why You Should Consider Investing?

Studio Apartments – Why You Should Consider Investing?

What is a studio apartment?

A studio apartment is a one room apartment that houses everything in that single room, except the bathroom. The room can be either small or big in size, and depending on it, are at times called efficiency apartments. We shall refer to it only as Studios in this article.

Designed to consume the least of spaces, the studio apartment is usually segmented into areas used for different purposes. For instance, one corner of the room might be designed as a kitchen, while the other is used as living room and another section, consisting of a bed, would be your bedroom.

Why should you invest in a studio apartment?

Studio apartments have been pretty popular in the western part of the world for quite some time, particularly in the UK and US, and are now rapidly picking up popularity in India, mostly in the metropolitan cities. Particularly sought after by students, bachelors and those new to the city, following are the few reasons why studios are on hot demand at the moment:

1. Cheap prices at central locations

Studios are very affordable compared to 1BHK apartments or houses, and are often located at/near the central parts of the city. This is particularly appealing to young bachelors and students, who want to live a modern lifestyle in close proximity to where they work/study, and also enjoy the amenities of the city such as movies, nightlife etc – (both of which are usually located at the prime locations of the city); but at cheap prices. Studios bridge this gap by providing cheap yet modern housing in the most ‘hip’ parts of the city.

2. Easier to maintain

Studios are comparatively easier to clean, furnish and refurbish due to its compact size. Most young adults are very lazy when it comes to cleaning, and a studio apartment helps by providing less space to clean. It is easy and cheap to furnish, and is also easy to refurbish for a landlord in case of damage.

3. Lower running cost than a house

Studios also consume lesser running resources such as water and electricity as compared to other conventional apartments. Over time these little avoided costs amount to huge cumulative savings and you also contribute in lowering your energy/resource consumption- hence, playing your part in preserving the environment and its resources, as well.

4. Proud owner of a house

EMI’s on studio apartments are comparatively very low and in a number of cases, closely equivalent to paying monthly rent for a conventional apartment at the same location. Therefore, it makes more sense to purchase a studio apartment instead and be a proud home owner.

5. Easy resale and rent opportunities

Studio apartments are by design, an easy sell with a resolute demand coming its way. A studio located at the heart of a metro city, under normal circumstances, would never depreciate in value. In fact, house owners in Indian cities like Bangalore increase rent by about 10 percent annually or every alternate year, further confirming the reason why buying a studio is a better option to renting a normal apartment.

6. Investment opportunities

A studio apartment is also worth considering when planning on buying rental property. Although at first sight, a studio apartment seems like a meek income generator, it is perfect for investment especially if you are new to the real estate business. The small capital required, along with its ease in maintenance, and the constant demand for it, all make it perfect for an inexperienced investor to ‘play’ around with minimal risks.

7. More opportunities with travel industry

With the tourism industry evolving and a number of tourists wanting to stay independently and not in hotels, – Studios make a perfect substitute to hotel rooms. Many tourists these days want to get away from the overly fake, clingy and downright cringe-worthy hospitality of the hotels, and opt for more homely environments. With the added growth in popularity of hospitality services like Airbnb, in certain locations, Studios might be able to generate more income than you may imagine when rented for very short periods.


Studio apartments are a viable option to all beginners. If you are a beginner starting work in a new city, a studio makes a very good first house, which can be later leased or sold if you want to buy a bigger house. If you are a beginner in real estate investment, then too studios are a viable option for its low risks. Alternatively, studios also make great gifts to someone special- a studio for your son/daughter starting work in a new city, or a studio for your most hardworking employee in recognition of his/her contributions etc, all convey strong messages of love and appreciation, and also make a very viable gift.


Gaurav Bhore

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