We recently learned that the most-searched real estate term in Australia right now is ‘granny flat’ — and it’s easy to see why. With housing costs continuing to rise, many homeowners are looking to their own backyards for smart ways to increase living space or bring in extra income.
From a garden studio that becomes the perfect home office or gym, to a fully self-contained granny flat for ageing parents, or even a rental opportunity through Airbnb or long-term leasing — the possibilities are vast when you build beyond your back door.
Who better than talk on this topic than the team at Garden Studios, specialists in designing and building custom garden studios, pods, and granny flats that expand homes beautifully and functionally. Based in Melbourne and working across Victoria, they transform under-utilised outdoor spaces into architectural additions that support their client’s lifestyles.
Whether it’s a quiet office for focus, an art studio for creativity, or a welcoming retreat for guests, each project is thoughtfully designed to reflect the homeowner’s lifestyle and add genuine property value. Today, Garden Studios are sharing what’s possible when clever design meets backyard potential.
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Words by Garden Studio team
Why Australians are turning to garden studios
The way we live has shifted. Remote work, rising property prices, and the growing need for flexible living options have made backyard studios one of the most sought-after additions — with homeowners across the country finding creative ways to make the most of their outdoor spaces.
Unlike traditional renovations, a garden studio offers:
- faster installation with minimal disruption to daily life
- flexible design that suits any backyard size or style
- a lasting investment that can increase property value.
Beyond practicality, these spaces are also about creating beauty and balance — a design statement that connects home and garden in one harmonious flow.
Design that blends function and form
What sets modern garden studios apart is the attention to detail. Every design element — from the roofline to the placement of windows — is chosen to enhance comfort and aesthetics.
At Garden Studios, we consider:
- light and orientation: Large picture windows capture natural light and views, making the interior feel open and inviting
- insulation and acoustics: Fully insulated walls, floors, and roofs ensure year-round comfort, while optional soundproofing creates peace and quiet
- material palette: Timber cladding, matte finishes, and clean lines bring warmth and sophistication that complement the main home’s architecture.
The result is a structure that feels less like an ‘add-on’ and more like a natural extension of your living space.

From office to oasis: Versatility in every design
Garden studios are designed to evolve. A space that starts as a home office might later become a yoga room, teen retreat, or guest suite — proof that good design is flexible design.
Popular uses Australians are embracing granny flats include:
- creative studios for art, music, or design work
- private offices that separate work and home life
- guest rooms that offer privacy and comfort for visitors
- wellness retreats for meditation or fitness
- independent living units for older parents or adult children.
Each purpose adds a layer of value — personal, emotional, and financial.
Adding real value to Australian homes
A beautifully built garden studio doesn’t just change how you live, it also changes how others see your property. Real estate agents often highlight studios as a major selling point, especially when they’re insulated, wired, and finished to a high standard.
Buyers see the potential — a space that can generate rental income, host family, or simply enhance daily living. This versatility turns a backyard addition into a long-term investment.

Tips for homeowners planning their own studio
If you’re thinking about adding a studio, here are a few tips to ensure it’s both stylish and smart.
- Know your local regulations: Some studios under certain sizes may be exempt from building permits, but always check with your council.
- Plan for utilities early: Electrical, lighting, and internet connections should be designed in from the start.
- Choose quality insulation and glazing: Comfort is what turns a shed into a real living space.
- Integrate the landscape: Simple decks, paths, and greenery help the studio feel part of your garden design.
- Personalise it: Finishes, colours, and fittings should reflect your personality and the story of your home.
The backyard has always been a place for relaxation — but now, it’s also a place for inspiration. Garden studios show how thoughtful design can create privacy, productivity, and purpose without leaving home.
These modern pavilions don’t just extend living space, they expand the possibilities of what home can be. Across Australia, backyards aren’t just being landscaped, they’re being reimagined.
More design ideas
About the author
Garden Studios designs and builds custom garden studios, granny flats, and pods, with projects across Victoria and Melbourne. Each space is crafted to complement your lifestyle and landscape — combining beautiful design with lasting functionality. Explore our spaces at gardenstudios.com.au.





