Why You Should Build a Granny Flat Now – The Demand Has Never Been Hotter

Move over swimming pools — Granny Flats are officially Sydney’s most sought-after backyard addition.

According to a recent Domain article, the humble "granny flat" has overtaken "pool" as the most searched term among Sydney property buyers. And it’s not hard to see why. With housing affordability under pressure, rental demand soaring, and families needing flexible living spaces, a well-designed granny flat has become the new gold standard in home improvements.

If you're a Sydney homeowner, here’s why there has never been a better time to invest in a granny flat — for both today’s returns and tomorrow’s resale value.

1. Granny Flats Deliver Immediate Return on Investment

Whether you’re renting out your granny flat to long-term tenants or listing it on Airbnb, these secondary dwellings can earn you $40,000 or more per year in extra income. With the right design, your investment can start paying for itself from the moment it's complete.

For homeowners looking to downsize or live more affordably, some even move into their new granny flat and rent out the main house — flipping the traditional model to supercharge their cash flow.

2. It Adds Serious Value to Your Property

A quality-built granny flat increases your property’s equity, making your home more attractive to future buyers or investors. With Sydney’s competitive market, value-added features like a stylish, self-contained dwelling are major drawcards — especially when done right with award-winning design and craftsmanship.

A Bungalow Home isn’t just a second dwelling — it’s a precision-crafted asset that enhances lifestyle and boosts resale appeal.

3. It’s More Than an Investment — It’s a Smart Lifestyle Choice

Need room for ageing parents, adult kids, or a home office? A granny flat provides the ultimate in flexible living. It's a space that evolves with your needs — from family retreat to rental to future downsizer's haven.

At Bungalow Homes, we’ve helped over 300 Northern Beaches families turn their backyards into high-functioning, income-generating, and lifestyle-enhancing spaces.

4. It’s Officially What Buyers Want

With Domain data showing “granny flat” has eclipsed “pool” in search interest, buyers are clearly seeing them as a practical, profitable addition — not just a luxury.

And that means if you plan to sell down the track, you’re adding one of the most desirable features to your home right now.

5. Bungalow Homes Makes It Simple, Fast & Transparent

We specialise in award-winning granny flats built with quality, care, and unmatched experience. Whether you choose a Custom, Signature, or DuraBuild design, our streamlined process means:

  • No commitment to build until after Design & Approvals

  • Fixed-price contracts, no surprise costs

  • Third-party inspections and a 900+ point quality checklist

  • Local expertise, with a team that truly cares

Ready to Capitalise on This Demand?

Whether you’re planning to earn rental income, support your family, or increase your home’s long-term value, the evidence is clear: granny flats are in — and they’re not going anywhere.

At Bungalow Homes, we offer free site assessments and transparent guidance every step of the way. Contact our team today and turn your backyard into your best investment yet.

👉 www.bungalowhomes.net.au | 📞 (02) 9984 8950 | 📧 admin@bungalowhomes.net.au

Tanya Hayes