Our first cat was an outdoors cat, and lived healthily for 19 yrs. Our kitty was mostly an outdoors cat back when we lived in the middle east, but gets stressed if he try to let him outside, and refuses to go out. He will sleep on our small balcony but won't go further than that. He loves the little stuffed grey mice you by from IKEA and anything that dangles from a height. My husband recently bought a new laser pointer - our cat goes wild chasing the red dot! He looks happy living in an apartment, likes to sleep on one of the window sills or keep watch out.
SPCA have many rescue cats and kittens waiting to be adopted. The main thing is that your cat is truly loved rather than the size of you apartment.