Kensington Palace to undergo massive renovation -- possibly for Prince Harry's new apartment

Things are definitely heating up for Prince Harry and Meghan Markle. The pair is rumored to get engaged before the end of the year, and the proof is in the pudding at Kensington Palace -- and no, not the dessert. In the home renovations.

Prince Harry has lived in one of the smallest residences on the grounds, Nottingham Cottage, for quite some time, but it seems he'll soon be making an upgrade. His American actress girlfriend often comes to stay with him in the two-bedroom space and is said to be planning to move to London full-time after filming wraps for 'Suits.'

Now, a new rumor has emerged as to where Harry and Meghan will live once she does.

Harry's future home is reportedly the 21-room Apartment 1, which closely mimics Apartment 1A -- the Duke and Duchess of Cambridge's London home with their children George and Charlotte. (Kinda confusing, we know.) The space is currently home to the Duke and Duchess of Gloucester, but it's believed they'll leave the apartment fairly soon.

That speculation, in fact, initially came from none other than Princess Michael of Kent, the Queen's cousin by marriage.

The Duke and Duchess of Cambridge have a "lovely big apartment," she said in an interview with Tatler magazine, "next to the Gloucesters, who I think will leave their enormous apartment because their children have gone."

She noted that Prince Harry will probably take their place in Apartment 1, saying that it'd be a "very good move" for him to live next door to his brother and sister-in-law.

Princess Michael's quote is from 2014, but the idea that the Gloucesters will be moving has been brought back to the surface due to a new report about the finances of the royal household for 2016-17. Apartment 1, you see, is getting some work done.

Says the report:

Sounds a bit like the work done for William and Kate at 1A ... and who remembers that shiny new roof the Cambridges installed at Amner Hall? Does this mean the household is making some upgrades for their new re-haired tenant? Very possible.

The Palace is already working on another massive underground renovation that would open up Apartment 9 for the young royals. Some have speculated that that apartment is for Prince Harry and his future bride, but others believe it's just more space for William and Kate when they officially move in this fall.

No matter who plans to be living exactly where, it's clear that William, Kate and Harry are officially taking over at Kensington Palace. Can we move in, too?