How much can a renovation increase the value of an apartment?
Are you thinking about renovating an apartment to increase its value? In an increasingly competitive real estate market, homeowners face a crucial question before putting up a “For Sale” sign: Is it worth investing in a renovation? The short answer is yes. Today, buyers are extremely discerning and often make emotional decisions; a home that looks neglected or outdated tends to attract lower offers.
If you're wondering exactly how much a renovation increases a home's value, you should know that, on average in Spain, a renovated home can be worth 24% more than one that isn't. However, this percentage can vary considerably depending on the type of renovation and the city where the property is located.
Full-scale renovations vs. partial renovations: Which offers a better return on investment?
Not all renovations have the same impact on the final price. It is essential to distinguish between a complete renovation and small, strategic upgrades.
The Impact of Comprehensive Reforms
A complete renovation of the property, including changes to the layout, electrical systems, and plumbing, is usually the most cost-effective option in the long run. It is estimated that a renovation of this type can increase the property’s value by an average of 20% to 25%. By modernizing the space and adapting it to current trends—such as creating open, bright areas—the perceived value can skyrocket by an additional 20%.
Partial renovations: kitchens and bathrooms take center stage
If you don’t have the budget for a complete renovation, focusing on key rooms is the best strategy. The kitchen and bathroom are considered the “kings of return on investment.” A renovation in these areas can lead to a direct 10% increase in the home’s value. Even simple changes, such as a fresh coat of paint in neutral tones or updating the flooring, serve as an excellent facelift that helps buyers envision themselves living there. In these cases, to accurately calculate how much a partial renovation increases a home’s value, estimates range from 7% to 20%.
The Importance of Location in Appreciation
The area where your home is located is a key factor in determining the potential return on your renovation. Local demand dictates how much buyers are willing to pay for a move-in-ready property.
- Major cities and high-demand areas: In cities such as Madrid, Barcelona, Bilbao, Málaga, and Valencia, the increase in property value is much more pronounced. In these areas, a comprehensive renovation can increase a property’s value by between 30% and 35%. Specifically, increases of up to 31% have been recorded in Barcelona, and 33% in Bilbao and Valencia.
- Other regions: In areas with more moderate growth potential, such as Murcia, La Rioja, the Balearic Islands, and the Canary Islands, property values typically increase by 12% to 15% following a renovation.
Knowing this information is essential to understanding how mucha renovation increases a home'svalue based on the ZIP code.
Energy Efficiency: The Value of Sustainable Savings
Today more than ever, sustainability is not just an ethical issue; it is also a financial investment and a matter of basic comfort. Renovations that improve thermal insulation—such as installing double-pane windows or efficient heating systems—enable homeowners to obtain higher-level energy efficiency certificates.
This not only reduces monthly utility bills but also directly increases the property’s appraised value. When considering how much an apartment’s value increases with this type of renovation, it is worth noting that the market views homes that meet emissions reduction targets favorably. In addition, there are public grants that can cover between 35% and 100% of the cost of these energy-efficient renovations, making the return on investment even more attractive.
Is it worth renovating before selling?
Renovating before putting your home on the market is a strategic decision that will help you sell faster and at a better price. A well-maintained and updated home stands out from the competition and shortens the negotiation process.
To get a clear idea of how much a renovation will increase the value of your home in your specific case, it’s advisable to use professional valuation tools that take into account the condition of the property, the quality of the materials (which can add an extra 10% in value), and current market conditions. Ultimately, investing wisely in your property is the surest way to maximize your real estate assets.
Remember that if you're thinking about renovating an apartment—whether it's for your own use or as an investment—at Studio by Clikalia we can help you renovate and increase the value of your home. Ask us for a free, no-obligation quote, and we’ll get right to work.
* A quick note: The figures provided in this post are for reference only and may not match the final results of a renovation by Studio by Clikalia. Keep in mind that there are many factors that can influence the increase in property value: geographic location, the quality and materials chosen, the scope of the renovation, etc.
