Written by CNN Staff

Anyone living in Hong Kong, Tokyo, London or Manhattan knows space is at a premium. And as the number of the world's megacities expands -- there were 31 cities with populations greater than 10 million people in 2016, according to the United Nations -- clever and efficient use of residential space is essential.

But is it possible to live large in tiny spaces?

Small can indeed be beautiful according to "Small Homes, Grand Living," a new book by Gestalten showing how innovative designers and architects across the world have managed to create innovative homes for people in compact spaces.

It also highlights the many benefits -- like time and money savings -- of choosing to live in a smaller apartment closer to the conveniences of the city center.

"The luxury of time is a value that can replace the luxury of space if you are willing to live in a smaller, more compact home," German architect Sigurd Larsen points out in the book's introduction.

Dream home crammed into 309-sqft transformer apartment

And while tinier abodes attract lower rents, they can also help save the planet, according to Larsen, who points out that shared facilities and energy savings make compact living in densely populated areas "the most efficient form of accommodation."

Most importantly, whether shared or solitary, a small home can also have a big impact on our happiness.

"They are retreats within which our weekly routines occur, and hence they contain the potential to contribute fundamentally to the quality of our everyday lives," Larsen says.