With shrinking space and rising housing costs, people are seeking various ways to increase more space in their apartments. One new trend that spawned from a lack of space is the loft apartment.
Loft apartments are characterised by high ceilings, open layouts and a general industrial-chic aesthetic, and now these newer spaces are drawing buyers, tenants and investors alike, entranced by something beyond the standard apartment model.
What are loft apartments?
The concept of loft apartments began in New York and London where architects and designers reconverted warehouses into liveable spaces. In India, it is relatively new, but gaining in popularity fast in places like Mumbai, Delhi, Bengaluru and Pune. Today, developers are also working on this concept in a big way by including mezzanine floors and vertical design spaces to squeeze out the maximum space utilisation in an apartment.
More Room to Breathe and Customise
Unlike traditional one – or two – bedroom flats, lofts offer more open space per square foot. The absence of interior walls allows for multifunctional zones ideal for those who want a fluid set-up that can shift from home office to living area and even creative studio.
Sunny Katyal, co-founder of Investors Clinic, a real estate consultancy firm, says the trend is catching up fast in India. He told Outlook Money, “The apartments are in trend mainly among the young professionals. The open and spacious layouts highly resonate with the aspirations of these buyers. Besides, they are paving the way in tier-II cities where there’s a noticeable demand for modern, flexible living spaces. These developments offer a unique alternative to conventional flats.”
He noted that lofts are especially popular among those who value design flexibility. Katyal added, “These developments come with numerous perks that appeal to modern buyers. Their high ceilings and open layouts create a spacious, airy environment suitable for both living and working. One of the key benefits is design flexibility. Hence, residents can customise and style their lofts creatively, unlike traditional 1BHK or 2BHK formats.”
However, these loft apartments can cost 5-15 per cent over traditional 1 BHK or 2 BHK apartments.
Rental Yields and Investor Interest
The distinct character of loft apartments makes them especially attractive in the short-term rental market. Their Instagram-friendly aesthetics and flexible layouts give them an edge on platforms like Airbnb.
According to Katyal, investors are beginning to take note.
Katyal added, “They tap into the growing trend of premium micro-living, offering compact yet design-forward spaces. Investors are taking note, too, especially those eyeing the short-term rental market. Lofts perform well on platforms like Airbnb due to their visual appeal and versatility.”
This uniqueness can also translate into better rental yields. In high-demand urban pockets, landlords may be able to command a premium per square foot for a loft unit compared to a traditional apartment, thanks to the perceived value of openness and style.
