Renovation can significantly increase the resale value of an apartment in Spain. According to experts, value increases of 20 to 30 percent are possible, depending on the type of work performed. Comprehensive refurbishment, modern kitchens and bathrooms, and improved energy efficiency are particularly important in this regard.
Spain Expat Press Editorial Team
by Marlon Gallego Bosbach
Anyone looking to sell their apartment in Spain can significantly influence the eventual sale price through the right renovation work. According to real estate experts, a modernized property can be worth 20 to 30 percent more than a comparable, unrenovated apartment. In particularly high-demand markets such as Madrid or Barcelona, the increase in value can be even greater.
However, the crucial factor is not simply investing as much money as possible in a property. Rather, what matters is which measures actually create added value and are appropriate for the specific location.
A comprehensive renovation yields the greatest impact
According to experts, a comprehensive renovation offers the greatest potential. This involves not only renewing surfaces but also modernizing the apartment’s layout and technical systems.
This can include, for example, new water pipes, updated electrical systems, modern heating and cooling systems, new flooring, and a new kitchen and bathroom. According to the aforementioned estimates, such a comprehensive renovation can increase a property’s value by up to 30 percent.
Kitchen and bathroom are particularly important
A complete renovation is not always necessary; targeted improvements can also pay off when it comes time to sell. Modernizing the kitchen and bathroom, for instance, can boost the property’s value by approximately 14 to 20 percent. Both areas play a crucial role in valuation and in the decisions made by potential buyers.
Modern amenities, contemporary materials, and a good overall condition can help make an apartment appear more attractive on the market.
Energy efficiency is becoming more important
Investments in energy efficiency can also increase a property’s value. Examples include improved insulation, new windows, or modern heating and cooling systems. Aerothermal technology is also frequently mentioned in this context, as it is increasingly being used in Spain as an alternative to conventional heating and cooling systems.
Depending on the measure, experts say that improving energy efficiency can yield an additional increase in value of approximately four to ten percent. In addition to a potentially higher selling price, such measures can also reduce residents’ ongoing energy costs.
Cosmetic changes yield less
Not every renovation has the same impact on a property’s value. While purely cosmetic improvements can enhance an apartment’s appearance, experts generally note that they result in a smaller increase in value; figures of around five to ten percent are cited for measures such as a fresh coat of paint or minor visual updates.
On the other hand, outdated installations, poor energy efficiency, or an unfavorable room layout can be significantly more important factors. Anyone planning to renovate before selling should therefore first assess which of the property’s shortcomings actually need to be addressed.
Location is also a deciding factor
The extent to which a renovation increases the value of an apartment also depends on its location. A high-quality renovation does not automatically result in the same price increase everywhere.
In high-demand markets such as Madrid and Barcelona, renovated apartments can appreciate in value by more than 30 percent, according to experts. In other regions, this effect may be significantly less pronounced. Therefore, any renovation should always be tailored to the price levels and demand of the specific local real estate market.
Document renovations thoroughly
Anyone renovating an apartment with the intention of selling it later should carefully document the work. This includes, among other things, invoices, permits, certificates, and information about the materials used. Photos showing the condition before and after the renovation can also be helpful. This makes it possible to verify exactly what improvements were made.
Documentation is particularly important for technical modifications, such as those involving the electrical or plumbing systems. Conversely, unauthorized alterations can lead to problems during a future sale.
Not every investment pays off
An expensive renovation does not automatically result in a correspondingly higher selling price. The decisive factor is the relationship between the investment costs and the added value of the property.
For example, anyone who invests 40,000 euros in an apartment and thereby generates an increase in value of 60,000 euros would have created 20,000 euros in additional value. Relative to the investment, this corresponds to an ROI of 50 percent.
Such a calculation demonstrates why, prior to major renovations, it is important to carefully examine which work actually makes economic sense.
A professional assessment can help
An official property valuation can be useful for an accurate assessment of a property’s value. This process takes into account not only the condition of the apartment but also its location, comparable properties, and the current market situation.
Such an assessment can be particularly helpful when owners invest substantial sums in a renovation and subsequently wish to understand how the property’s value has changed.
