Jul 18, 2022
The difference in price between an apartment in good condition and one that needs repair is an average of 25%. For example, in Spain, the price of 1 m2 of an apartment in good condition is 1,705 euros, and of apartments without new repairs is 1,279 euros/1 m2.
The source Spain Real Estate tells you about why buying an apartment for renovation will be cheaper and where in Spain it is most profitable to buy this property.
Price difference by city
In the capital, the sufficient difference between apartments in good condition and apartments in need of repair is in Ourense – 46%, in Jaén – 45%, Cuenca – 44%, León – 44%, Pontevedra – 43%, Las Palmas de Gran Canaria – 40%, and Castellon – 40%.
San Sebastián is in another part of the country, the only city where prices for houses in need of repair are 3% higher than for houses in good condition, probably due to the better location of many old apartments in the center of the capital. This is followed by apartments in Huelva, where houses for renovation are 6% cheaper, in Pamplona – by 7%, Murcia – by 9%, as well as Barcelona and Madrid – by 12%.
The difference in the price of houses for sale, depending on the degree of their preservation
Below is a rating of cities and the cost of 1 m2 of housing where it will be most expensive to repair secondary real estate:
- San Sebastián – 5,080 euros/1 m2;
- Barcelona – 3,762 euros/1m2;
- Madrid – 3,644 euros/1m2;
- Palma de Mallorca – 2,852 euro/1m2;
- Bilbao – 2,678 euros 1m2;
- Pamplona – 2,333 euros/1m2.
On the other hand, these cities are the cheapest for buying real estate without repairs – an average of 1,164 euros/1m2.
Why is it more profitable to invest in houses for renovation?
At the national level, if the buyer chooses a typical 90-meter apartment, his savings will be 38,500-40,000 euros for repairs.
Given the difference in prices between the capitals and other cities, the amounts that will be spent on repairs may vary. The highest amount is in Las Palmas de Gran Canaria (91,576 euros), Vitoria (89,339 euros), Pontevedra (75,398 euros), Ourense (72,449 euros), and Palma de Mallorca (70,071 euros).
San Sebastián occupies the opposite side, where buying a house for renovation will not bring any savings. This is followed by Huelva (6,273 euros), Murcia (11,251 euros), Pamplona (15,378 euros), Ceuta (20,481 euros), and Alicante (22,772 euros).
How to sell an apartment and is it worth doing repairs?
Homeowners make mistakes when selling their properties, which make it impossible to make a profitable transaction or its cost is low. According to real estate experts, the most common mistakes of home sellers in Spain are:
- selling real estate at a high price
- failures to profitably present housing images in ads
- unusual design
- incorrect assessment of the first potential buyer
Malfunctions or poor condition, for example, of electricity and water supply systems can reduce the cost of housing by 25%. A sloppy or muddy apartment loses up to 15-20% of its value.
Therefore, experts recommend making cosmetic repairs in the apartment. On average, in Spain, cosmetic repairs will cost 50-100 euros per meter, and a more significant one will cost 400-500 euros per square meter of housing.
A renovated apartment is sold three times faster than a renovated one.
Profitable real estate in Spain at Spain-Real.Estate
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