Watch our video interview with Gaetano Grana
Do you speak Spanish? Don't miss our exclusive interview with Gaetano Grana, Construction Manager at Terreta Spain. Watch it now!
Hello Gaetano, can you introduce yourself in a few words?
I'm Gaetano Grana, an engineer with over 20 years' experience in the building maintenance and public works sector, specializing in the management of integral renovation projects for real estate investment. Throughout my career, I have managed key initiatives in cities such as Madrid, Barcelona, Seville, Alicante and Malaga, working on both new construction and the rehabilitation of social housing and cultural heritage. My passion and speciality lie in restoring the habitability of older homes, revitalizing them to adapt to the needs of today's market. This approach not only contributes to the recovery of the housing stock, but also boosts the economic and functional value of properties, making them attractive to investors and owners alike.
What is Terreta Spain's mission?
For me, the mission is to identify and manage real estate properties that offer income-generating opportunities for investors, creating innovative real estate solutions that meet customers' needs, whether in terms of renting, buying or investing.
When it comes to renovations, how does Terreta Spain differ from other construction companies?
The main difference is the level of exclusivity, personalization and quality of the services we offer. These differences are reflected in several key aspects:
- Quality materials.
- Customized designs that reflect the specific style and preferences of each customer, working with quality architects, interior decorators or designers.
- Qualified and certified workforce for each specific trade.
Who can benefit from your services?
Our renovation services are aimed at various types of customer, depending on their approach. For example, there are those who wish to renovate, extend or modernize their homes, such as kitchens, bathrooms or common areas, but also those who renovate to enhance the value of the property with the aim of selling or renting at a higher price.
What are the main features of renovations in Spain?
Renovations in Spain have their own particularities, linked to the characteristics of its architecture, local regulations, cultural trends and the climate of each city. Many homes in Spain are old or traditional buildings, especially those located in historic centers, which require special attention to respect their architectural value and comply with conservation regulations. In cities such as Valencia, Madrid, Barcelona and Seville, it's common to work with original structural elements such as high ceilings, wooden beams, stone walls, hydraulic floors or Nolla mosaics, restoring them or integrating them into modern designs. In tourist areas, such as the Costa del Sol or the Balearic Islands, renovations are often geared towards the creation of vacation homes or tourist rentals, with an emphasis on attractive design and durable materials for intensive use.
How has the sector fared since Covid?
Spain's renovation sector experienced a significant recovery after the initial impact of COVID-19. During the pandemic, there was an increase in household savings, which stimulated investment in home improvements. In 2020, the sector recorded a growth in requests for renovations, reaching an acceptable business volume given the circumstances. This boom was stimulated by the need to adapt homes to make them more comfortable and functional, as people spent more time at home due to health restrictions and the telecommuting situation.
What are the key stages in renovating a property in Spain?
Renovating a property in Spain involves several key stages to ensure an efficient process that complies with local regulations and is tailored to the customer's needs. We can summarize them as follows:
- Property inspection
- Defining objectives
- Renovation budget
- License management
- Renovation work
- Monitoring and supervision
- Check
- Interior design
- Delivery to customer
- Agreed warranties
What types of properties do you renovate most frequently?
In Spain, the properties most often undergoing renovation are older homes in urban areas. This is due to several factors, such as the age of the housing stock; many homes in Spain are over 40 years old, requiring both aesthetic and functional updates to adapt to current needs, such as energy efficiency improvements, teleworking spaces or modern designs. Another important factor is demand in major cities such as Madrid, Barcelona and Valencia, which are key points for renovations. Property owners invest in renovating properties in these areas to increase their market value, whether for sale or rent. In some areas, renovations can increase property value by up to 30%. In summary, renovations in Spain are dominated by older urban dwellings and properties seeking to enhance their value through energy efficiency or adaptations to more modern lifestyles.
What type of renovations do you carry out most often: partial or total?
In Spain, both partial and full renovations are popular, but the choice depends on the specific needs and resources of the homeowner. Partial renovations are more common because they focus on specific areas, such as the kitchen, bathroom or aesthetic changes in a room. These renovations enable immediate improvements with lower initial investment, cost and turnaround time. They are ideal for those looking for occasional updates without too much disruption to daily life. Full-scale renovations, although representing a higher investment, have gained ground due to the need to optimize spaces, improve energy efficiency and completely renovate older properties. Among their benefits is the total transformation of the property, including redesigning distribution, updating technical systems and customizing finishes, all of which significantly increases the property's value.
We hear a lot about licenses and building permits. Can you explain what we need to know on this subject before starting a project?
Before starting a renovation project in Spain, it's essential to understand the licenses and permits required to comply with local regulations. Here are the key points we need to know:
Types of building permits :
- Minor works permit: For work that does not affect the building's structure or common elements.
- Major works permit: For structural renovations, changes in the distribution of spaces, alterations to facades or significant modifications to common building elements.
There are other variants, such as Type I and Type II responsible declarations, but the first two cover the majority of cases.
-Specific permits: in addition to the basic licenses, additional permits may be required in certain situations, such as modifications to protected buildings or permits to occupy the public highway for debris containers and/or scaffolding.
-Local regulations: each municipality may have specific requirements, so it's essential to consult local ordinances. For example, some municipalities require prior technical inspections or limit work schedules to minimize nuisance to neighbors.
-Associated costs: licenses have a cost, usually calculated as a percentage of the works budget (around 2% - 4%). They may also include additional charges for waste management or use of public space.
-Documents required: basic documents generally include: technical project (in the case of major work), estimate of work, responsible declaration or license application, proof of payment of fees.
What are the most common administrative errors made by foreigners wishing to renovate in Spain?
Foreigners wishing to renovate or reform properties in Spain often make certain administrative errors due to differences in regulations and procedures. In my experience, these are the most common:
- Ignorance of local regulations.
- Confusion over the type of license to apply for.
- Do not take into account regulations in protected buildings.
- Ignore current energy efficiency standards.
- Do not consult real professionals.
- Do not take into account the additional costs associated with hidden defects.
Are there any restrictions or areas where it is more difficult to obtain building permits?
In Spain, there are certain areas and types of property where obtaining building permits can be more complicated due to a series of specific regulations and restrictions. The main factors that affect obtaining building permits include:
- Heritage or historical protection zones.
- Areas with environmental protection.
- Densely populated areas.
- Buildings of interest and cultural heritage.
- Urban planning standards may vary by municipality.
In Spain, can a condominium object to work on an apartment: true or false?
In Spain, a condominium can effectively object to certain works in an apartment if they affect the building's common elements or do not comply with the regulations laid down in the Horizontal Property Law (LPH) or in the condominium's statutes. However, there are important limits and exceptions to this rule, as it is actually the Town Hall that grants permits and licenses for renovation work.
What are the average renovation costs per square metre in Spain in 2024?
In Spain, the average cost of a complete renovation in 2024 varies according to factors such as location, type of materials and quality of finish. For a standard total renovation, prices per square meter generally range from €600 to €800/m² + VAT. However, for high-end projects, costs can exceed €1,000 or even reach €1,200 per square meter + VAT.
What are the most common unforeseen expenses in a renovation project, and how can you anticipate them?
I think the most common are those related to hidden structural problems. These can be anticipated by carrying out surveys for inspections prior to drawing up specifications. Other unforeseen expenses can include the need to update old installations, unforeseen plumbing or electrical issues, and possible modifications required once work begins on the property.
What are the main risks facing homeowners when renovating in Spain?
First of all, there's the risk of not obtaining the necessary permits for their project. Then there are the extra costs that can be generated by hidden defects, which are only discovered once the work has begun. And sometimes, the opposition of part of the co-ownership to carrying out the work or conditioning it, particularly in communities with strict rules.
What are the advantages of renovating an old property rather than buying a new one in Spain?
Renovating an older property in Spain can offer significant advantages over buying new. These advantages include profitability, customization and durability.
- Profitability: Renovating a property can considerably increase its value, especially in central areas where older properties are more sought-after.
- Location: Older properties are often located in city centers, where the supply of new construction is limited.
- Personalization: Renovating an older property allows you to design spaces according to the owner's style and needs, which is not always possible in new properties, which are often standardized.
- Sustainability: Renovating an existing property means reusing resources and materials, which reduces the carbon footprint compared with building a new one.
In short, renovating an older property is a strategic decision, especially for those looking to maximize their return on investment, personalize their home and take advantage of prime locations. However, it is essential to plan the work carefully and consult professionals to guarantee a successful outcome.
How can renovations increase the value of a property in Spain, both for buying and renting?
Renovations considerably increase the value of a property if certain fundamental aspects are taken into account:
- Updating installations: Renovating systems such as electricity, plumbing and heating not only improves safety, but also ensures that the property meets current standards.
- Redistribution of space: The trend towards open spaces and integrated kitchens enhances the functionality and aesthetics of the property, making it more attractive on the market.
- Bathroom and kitchen renovation: These areas have a major visual and practical impact. Tenants often favor these spaces, especially if they have modern, functional finishes.
How does your renovation business work, and what guarantees do you offer your customers?
At Terreta, we specialize in projects offering a superior level of design, quality, customization and customer service. We focus on creating exceptional results for discerning customers, such as homeowners, investors or businesses seeking high-end finishes, as well as exclusive technical guidance and advice.
Our warranties include:
- The quality of the work.
- Meeting deadlines.
- Financial transparency.
- Legal warranties on work carried out.
- Protection against damage to third parties or property during construction.
What advice would you give to someone looking to renovate a property in Spain to avoid common mistakes?
Renovating a property in Spain can be a rewarding process, but it can also be a difficult one. To avoid common mistakes, here are some key tips based on my experience:
- Define a clear plan: know exactly what you want to achieve with the renovation.
- Set a realistic budget: Take all costs into account, including unforeseen events.
- Avoid changes during construction: Modifying the plan during construction can lead to delays and cost overruns.
- Comply with standards and obtain the necessary permits: Ensure that work complies with local legislation.
- Choosing the right professionals: It's crucial to work with qualified professionals, and to avoid excessive cost-cutting, which could compromise the quality of the work.
Successful renovation requires planning, good professionals and a clear knowledge of local regulations. Investing time in these aspects before you start can save you money, stress and avoid long-term legal problems.
Do you observe any specific trends in renovations in Spain, such as durability or the use of specific materials?
In Spain, current renovation trends show a strong emphasis on sustainability, energy efficiency and the use of both innovative and traditional materials. These trends are driven by homeowner demand, government regulations and post-pandemic shifts in priorities. Key trends include:
- Multifunctional spaces and open designs: integration of rooms such as the kitchen/living room.
- Traditional elements: Nolla mosaics, wooden beams, Catalan vaults, hydraulic floors.
- Incorporating technology: air conditioning, home automation, intelligent home systems.
- Emphasis on outdoor spaces: Optimization of terraces and patios.
- Colors and interior design: earthy tones, beige and gray, often combined with black or gold details.
How has international demand influenced working methods and renovation expectations?
International demand has had a significant impact on working practices and renovation expectations in Spain. This is mainly due to foreign buyers and investors acquiring property for personal use, vacations or as a rental investment.
International customers, particularly those from Northern Europe, favor sustainable solutions, which has encouraged the adoption of eco-friendly materials, renewable energies and efficient systems.
This demand has transformed the Spanish renovation sector, setting higher standards in terms of quality, sustainability and professionalism.
Companies like Terreta have adapted their services to meet this customer profile, which has benefited both foreign buyers and the market in general.
At Terreta, if the investor requires it, we carry out "turnkey" projects, which is an asset for many foreigners who cannot be present throughout the renovation process. Moreover, language can often be an obstacle at this stage, which is why we offer a multilingual service (English, Italian, French, etc.), trained to meet the cultural and practical needs of foreigners.
