Read this article to learn the costs of property refurbishment in Madrid, how to manage a property refurbishment and the return you can expect to receive on your refurbishment investment.
Why invest in property refurbishment?
One of the easiest ways to maximize your rental yield is to buy a property relatively cheaply and refurbish it to improve its value. This is true in any market, but particularly so in Madrid. We have found apartments for over three hundred clients. Others were unable to see their potential- we transformed them into highly sought after properties.
In short, we have found that every additional 1€ our clients spend on refurbishment adds an additional 1.5€ to the value of their apartment.
The key to a financially successful refurbishment is to find a property with an apparent defect, and use the refurb to ameliorate that defect
Why is it that we hear stories about people ending up spending three times the time and/or money than the initial estimate?
This is because it takes knowledge and project management expertise to oversee a successful property refurbishment.
Do you want to renovate your Madrid property but don’t know where to begin? We are here to help. Arrange a FREE CONSULTATION TODAY to speak with one of our property experts.
Here are some guidelines that will help achieve a successful refurb. The prices are valid more or less throughout Spain, and include VAT:
How much does it cost to refurbish an apartment in Madrid?
Basic property refurbishment
You should expect to pay 500-700€ per m2 to renew the basics. This includes new floors, wiring, pipes and a fresh coat of paint. If you are careful, you can also buy new windows and doors within this budget. However, you will only be able to afford very basic finishings in this price range.
For example, if you have a 60 square meter, one bedroom apartment, you can expect to spend 36,000€ for a basic refurbishment
Full property refurbishment
You should expect to pay 800-900€ per m2 to refurbish your flat completely, this time with more premium details. This includes two or more air conditioning units, a new kitchen (complete with a new refrigerator, washing machine, oven, dishwasher and microwave). At this level of investment, you can even add some special design elements. In general, the overall quality of every component will likely last longer and everything will just feel more solid.
In our experience, this is the optimal type of refurbishment for investment properties. Our data shows that you will get your money back in less than two years from this additional refurbishment investment.
In the previous one bedroom, 60 square meter example, if you spend an additional 18,000€ you can do a full refurbishment with some deluxe amenities
Premium property refurbishment
You should expect to pay 1000-1200€ per m2, or even more, to turn a dark, flat apartment with a boring layout into something unique and perhaps even jaw-dropping. In this price range you can even knock down load bearing walls. You can do literally everything, all the way to installing the most cutting edge IoT home technology. You can also decide to be as premium as possible in the remodeling. This budget will allow you to hire an experienced designer to furnish your house, down to premium cutlery and linens.
In this price range the sky is the limit! You can even afford a billiards room
How long does it take to refurbish an apartment in Madrid?
Timing depends upon your needs and budget. You can do a massive makeover in two weeks, as long you have all the materials assembled. It will require the contractor to use five times the amount of workers, but if you can afford it they can do it.
We recommend you always give your contractor a very rigid deadline and to set it two weeks before the date you actually need the renovation to be completed.
Moving2Madrid Tip #1: Even if it’s the case, never, EVER tell your contractor that you are not in a hurry. This will extend the finish date by two months or more. Before you begin, ask them for a realistic date for the completion of the works, then see if they can make it sooner. This won’t harm the end result, the refurbishment company will simply need to redistribute their resources in a proper manner to make it happen.
What if I’m an expat? How do I choose among the hundreds of companies I see online?
Ask for a referral. There are many people that have had successful renovations. Find one and ask them for their insight and contacts.
Moving2Madrid Tip #2: Do not make the mistake of directly hiring workers and trying to manage the property refurbishment yourself. You will end up spending more money, have a much greater risk of the project being behind schedule and you will age years in the process.
Moving2Madrid Tip #3: We recommend that you solicit quotes from three or more contractors and learn how each one works. It doesn’t cost anything to show potential properties to an experienced architect. We recommend you take advantage of this opportunity to narrow down the details of your refurbishment cost and schedule.
Moving2Madrid Tip #4: Contractors can work with a given maximum budget, so do the math and establish realistic absolute maximum budget. You will see miracles happen if you do this.
And last not but least, ask us! We have been refurbishing properties for our clients for many years now. We have a short list of trusted interior architects and designers so if you are at all curious about buying a property in Madrid, send us an email. We can exchange ideas, give you valuable tips and even give you our short list of designers, architects and contractors so you can start working on your new dream house in Madrid, today.
email@moving2madrid.com