I lived in 35m2 with a son and a husband and I now live in 80 m2, two bedroom apartment, so no garden, attick, celler, nothing.
First, I do not think it is ridiculous, but there are many things to reconsider.
Do any of you work from home and is it possible to make a working space in your bedroom?
Think about layout, and think hard. Small places need different rules. I have storage everywhere and I mean everywhere.
So in the bedroom we have ikea malm bed with drawers, it is life saver, there is nothing I do not keep there.
My kitchen is small, think 5m2 but iz goes way up till the ceiling so it has lot of storage.
A table in the living room is a chest, more storage, storage in the couch, storage under the kid's bunk bed.
If you have lot of books, jigsaw puzzles, board games, think hard is there a wall you can put book shelves to keep all that in one place. It will help your place not to look cluttered.
Think how many things you have and imagine is it possible to put everything you need in your new home.
I never felt cluttered or annoyed even in 35m2, but I know lot of people who would.
I think small places are great, especially when it comes to utility billls, but they're not for everyone.