In today’s fast-moving age, the well-being of our families will often be influenced by the space available on our properties. Yes, your home is your pride and joy, and probably, at one point your existing property had a square footage that was more than adequate for the ongoing demands of your family. But times move on, our family members grow up, our needs change, and what was once sufficient, most likely nowadays is no longer enough for our needs. Do you need a more spacious property and are you looking for extensive opportunities to obtain a supplementary income source? In that case, granny flats near me might be an excellent choice.
Why should you be interested in granny flats construction in Sydney? A couple of reasons actually. For one thing, ADUs, when constructed by specialists with experience in this domain could add around 20-30% to the market value of your existing dwelling and also make it much easier for your house to find a quick buyer.
A granny flat can be an investment opportunity that will bring you 1) a substantial increase in your property’s valuation and 2) A supplementary income that will make it easier to handle your day-to-day tasks. They are simple constructions that do not require much documentation, they are cheap compared to house extensions, and they are, in recent years, one of the most talked-about solutions for the housing crisis currently present in NSW.
What Are the Main Practical Benefits?
When it comes to square footage, Australian dwellings are the largest in the world, but this doesn’t mean that all of them are constructed in the same manner. Truth be told, most properties built after 2010, lack the necessary space for the daily requirements of families with more than
one child. Are you finding yourself in this position, and are you looking for a place that will be closer to your workplace and that will also benefit from more room for your children’s activities? In that case, you should look at granny flats near me.
Newly-built granny flats near me are above all else a practical choice if you are trying to benefit from more space for your family, without investing a fortune into a new property. Yes, it’s a good idea to look for nearby houses with attached granny flats. But perhaps a better idea is to invest in granny flat construction and utilise the services of professionals who can build you an ADU in accordance with your subjective preferences. How much will it cost you? It really depends on what you’re looking for, but the costs for ADUs are, in general, more than acceptable.
For a one-bedroom standard granny flat, you can generally be expected to pay around $80,000 to $130,000, while a high-quality two-bedroom one can cost up to $180,000. It’s not exactly cheap, but at the same time, let’s look at the alternative. The costs to a mid-to-premium house extension will be between $4,000 and $6,000 per square meter, which means that for an extension equal to the maximum size allowed for a granny flat, at 60 square meters, you will need to pay between $240,000 and $360,000. Granny flats are more affordable, and for most, are therefore a more practical purchase.
What About the Financial Reasons?
One of the best reasons for looking at granny flats near me has to do with the potential appreciation to your main property. The average house price in Sydney, as of September 2025, has surpassed $1.7 million. This, for most Australians truly is an enormous sum, which makes our perspectives for purchasing a new property slim to none. Do you need more space and are you also trying to benefit financially from your investment? Then, granny flats can truly be one of your wisest financial purchases.
Your home is worth around $1.7 million? Then, a 30% increase to your house value will mean
a plus of $510,000 to the dwelling’s listing price. All for an initial investment that will be under
$200,000. ADUs represent perhaps one of the most lucrative investments one can currently make in Australia. And that’s because we are currently dealing with a veritable housing shortage and ADUs are seen as a medium-to-long-term solution that can at least release some of the pressure currently put on the ongoing housing projects in NSW.
Why do granny flats near me add so much value to existing properties? Two words: rental income. As of right now, the average rent in central Sydney is between $700 and $800 per week, which is a lot, no matter how we look at it. Granny flats on the other hand are typically rented out for something closer to $450-$500 per week, which will make your potential annual profit from renting stand between $23,400 and $26,000. Plus, you’ll have no problems in finding tenants. Sure, after taxes, maybe you keep around $16,000 of that sum. But still, that will mean that your investment will maybe pay off in less than 10 years. And after that, there’s only profit.
Granny Flat Construction and Restrictions
ADUs are the best investment you can make for your existing property. That said, granny flat construction will be accompanied by a set of guidelines that your expert in granny flat construction in Sydney will need to follow carefully. According to the NSW law, in order to qualify for a CDC, the maximum square footage of the granny flat cannot exceed 60 square meters. Moreover, your property must benefit from a square footage of at least 450 square meters, and you will need to maintain a 3-meter buffer to trees that have a height of over 4 meters.
You can only build one ADU per property, and you cannot sell them separately. In other words, if you want to list your dwelling and continue being the owner of the ADU, that will not be possible. The granny flat must also be self-contained, have a maximum height of 8.5 meters, and follow the local zoning restrictions.
As for the documents, the expert in granny flat construction in Sydney who helps you out will need your certificate of title, your site and house design plan, the specifications of your property and your BASIX certificate, amongst a couple of other documents. These will be necessary for your CDC application, which is the fastest pathway for commencing on the ADU construction.
