The Number of Square Meters Can Be Deceiving: A Larger Apartment Doesn't Necessarily Mean More Space

When evaluating a home, similar apartments are often compared first by price and size. However, the number of square meters doesn't always show how much practical space a home actually has. A well-planned 70-square-meter apartment may suit a family's needs better than an 80-square-meter one and be more affordable in terms of both purchase price and monthly expenses.

According to Anne Pärgma, head of residential lending at Swedbank, it's worth looking carefully at the layout in addition to the apartment's size.

"Two apartments with the same floor area can be very different in everyday use. One may have rooms with good shape and arrangement, plenty of storage space, and the entrance takes up little space. In another, a considerable part of the square meters can go to a long corridor, awkward corners, or space that is difficult to furnish," said Pärgma.

Therefore, in addition to the price per square meter, it's worth assessing how well the apartment's space can actually be used: whether the necessary furniture fits in it, whether there is enough space for storing things, and how much space is left for everyday living.

Ten extra square meters can cost as much as the initial down payment

For example, you can compare two apartments in the same area with a price of 3,500 euros per square meter. A 70-square-meter apartment would cost 245,000 euros and an 80-square-meter one would cost 280,000 euros. So ten additional square meters will cost 35,000 euros more.

"Ten extra square meters is already a significant difference, but it's important to see what this additional space actually adds. If it creates, for example, a separate room or needed storage space, the larger area can be very valuable. If the extra square meters are distributed mainly between the corridor, entrance, or simply larger rooms, the difference in everyday use may not be nearly as great," Pärgma said.

35,000 euros can also be comparable in magnitude to the initial down payment on a home. A higher purchase price usually also means a higher monthly loan payment, which is why it's worth considering whether the extra space gives the family something they really need.

A larger apartment can also mean other larger monthly expenses

The size of an apartment also affects later costs. An 80-square-meter apartment is approximately 15% larger than a 70-square-meter one, and the same difference carries over to costs that are calculated based on the apartment's floor area. These might be, for example, renovation fund and costs related to heating shared spaces.

This comparison applies primarily to similar apartments. If the apartments are in buildings with different conditions or energy efficiency, monthly costs may differ for other reasons than just the apartment's size. "Homes should be compared as a whole. In addition to price and square meters, you need to look at the layout, additional costs, and the condition of the building, but most importantly, whether the home meets the family's needs in the long run," said Pärgma.

For example, an extra room that seems unnecessary now may be necessary in a few years as a child's room or home office. On the other hand, a few extra square meters in the living room or entrance may not give the family enough to justify paying tens of thousands of euros more.