Renovating a luxury home in Spain can increase its value by 65%.

Updating a luxury home in Spain is an investment that pays off. This conclusion is based on a study conducted by the real estateagency Barnes, which specializes in the high-end property market, analyzing the cost-benefit ratio of renovating luxury and mid-range homes in Spain.

According to their data, the average investment in luxury real estate is around 650 euros per square meter, which is not even twice the cost of standard housing in Spain, which averages about 350 euros per square meter. On the other hand, the price of a luxury renovated property in Spain can increase by up to 65%, compared to 20% for regular real estate, depending on its characteristics and location.

According to Barnes, "An apartment with an area of 200 m2 in an elite neighborhood of major cities like Barcelona, with a pre-renovation cost of 1.2 million euros, can be revalued to 2 million euros after renovation, resulting in a price increase from 6,000 euros/m2 to 10,000 euros/m2.

These discrepancies between the renovation cost per square meter and the potential increase in property value are due to the demands of the luxury market, where buyers are looking for new or recently renovated properties, while secondary housing takes precedence in traditional transactions.

Moreover, in addition to adapting to what the demand requires, Spain also needs a renovation of its housing stock, as more than 60% of homes were built over 30 years ago. In fact, renovation experts note that the self-isolation due to the coronavirus in Spain has sparked an increased interest in carrying out repairs in homes. It should be remembered that summer is the best time of year for such work, as there is more free time and less inconvenience for neighbors, among other reasons.