The latest data from Otodom indicates a growing interest in so-called micro-apartments. In January 2025, the number of searches for properties under 40 square meters increased by 25% compared to the same period last year. The total number of searches for apartments for sale in January 2025 was 16% higher than a year ago, showing that year-over-year changes in the small apartment segment exceed the overall market trend.
The micro-apartment segment accounts for over 24% of listings in the sales section and more than 33% in the rental section. In 2023, the share of small apartments in the sales category was 22%, while for rentals, it was 31%. The number of listings for apartments under 40 square meters is increasing year by year. Otodom’s analysis also reveals that the number of rental listings for buildings older than five years increased by 25% in the past year compared to two years ago. Meanwhile, rental listings for properties built within the last five years grew by 29%. These increases align with the general supply trend in the rental market, as the total number of rental listings also rose in the same period, though by a smaller margin of nearly 20%. Throughout the following quarters, there was a noticeable difference between the year-over-year growth for the entire market and for the specific segment of small apartments. The so-called M1 units remain in high demand, serving as a rental option for individuals seeking good locations and lower maintenance costs or as a form of capital investment.
“January marked a peak in Otodom’s data regarding searches for small apartments, i.e., under 40 square meters. The highest growth in searches for such properties for sale was observed in the segment of apartments built within the last five years. This suggests that buyers are also looking for newer apartments in modern residential developments. Naturally, there are fewer such listings compared to older properties. The increased interest in newer micro-apartments could indicate that in the new year, some buyers see these properties as an appealing investment asset – with a rising entry threshold but still an attractive alternative for individual investors,” explains Milena Chełchowska, real estate market expert at Otodom.
Demand Remains Strong
Twenty-eight percent of all searches in the apartments-for-sale category involve properties under 40 square meters. Among this group, the vast majority of searches focused on apartments older than five years, accounting for about 24% of all searches for apartments built before 2020, while only 4% targeted newer units. However, at the beginning of this year, a shift occurred in the interest in newer properties for sale. By the end of January, the number of searches for such investments exceeded 1,380, representing a 39% year-over-year increase. Meanwhile, searches for rental apartments in newer buildings were 31% higher at the end of January than in the same period last year. The rental supply in this sector has also grown. For example, in the last quarter of 2024, there were 6,485 rental listings, marking a 13% year-over-year increase.
“The market structure is changing as investment properties purchased in recent years, completed and finished, have entered the rental listings, increasing rental supply. Meanwhile, the recent surge in interest in buying micro-apartments may be a result of changing consumer preferences, where the primary considerations are a low entry price and a central location in the city,” comments Milena Chełchowska from Otodom.
Prices Are High Even in the Micro Scale
A clear trend in the micro-apartment market remains rising prices. Notably, this increase is not higher than the general price growth for residential properties in Poland. For instance, compared to the first three months of 2023, the price per square meter in the first quarter of last year for the smallest apartments increased by 7% to 10%. Across all categories of apartments for sale, this figure was also 10%, meaning that micro-apartment price increases are in line with overall market trends. However, price differences depend on the construction period – newer properties are more expensive, averaging 1.1 times the price of older ones. It is also important to note that the price per square meter for such investments is often disproportionately high relative to their small size – particularly for premium micro-apartments.
For example, a 38-square-meter luxury apartment in Puck Bay or a 35-square-meter unit in Międzyzdroje can cost nearly two million PLN. Both locations offer sea views, high-quality finishes, and furnished apartments. Meanwhile, in the center of Warsaw, a high-end micro-apartment under 40 square meters can be found for around 1.5 million PLN. Here, the key selling points include location, terrace access, and a parking space.
“The question is whether, given the current housing market conditions – relative price stability and moderate supply – micro-apartments will remain an attractive investment asset, albeit with an increasingly higher entry threshold. Analyzing this segment of real estate, we can assume that potential buyers will face rising purchase costs, while landlords will encounter higher rental rates. Factors shaping investor strategies include loan costs, high inflation, and supply constraints. Therefore, it is essential to monitor price dynamics and supply changes in the micro-apartment market to better understand investor behavior and tenant preferences in small apartments,” concludes Agata Stachowiak, housing market expert at Otodom.
