Have you found a nugget in Madrid and need to renovate it to make it shine? Does your apartment need some freshening up and you don't know how much it's going to cost? Then you've come to the right place.

Renovating a property in Spain is both an ambitious and rewarding project: greater comfort, better layout, higher profitability, increased asset value, and so on. It's a win-win situation.

So, "How much does a total renovation in Madrid cost?", the answer can be found in this article, written by the experts at Terreta Spain.

The question is whether to buy a property in perfect condition or renovate it yourself in Madrid.

With property prices set to rise by almost 19% in 2024 in the Spanish capital, buying an apartment or house to renovate is bound to be a good idea. Because while these properties cost less than the average, once the work is completed, they can compete with the most modern, most desirable homes, those that rent and buy for more than the others.

Not sure what to do? Then let's summarize the advantages of a complete renovation:

• Renovating means adapting your home to your needs or those of future occupants.
• It means improving a home's energy performance. In 2024, it's a powerful argument
• Carrying out major work also means you'll be able to rent out your property at a higher price, if you intend to take in tenants.
• Last but not least, it increases the resale value of your property, and therefore your assets. You can bet on a price increase of 15 to 25% as soon as the work is completed. Sometimes even more.

These arguments remain valid despite the 30% average increase in renovation prices in Spain (and the rest of Europe) since the Covid pandemic and the start of the war in Ukraine.

Our advice is the same if you've already bought: it' s cheaper to renovate your home, adapt it to your new needs or bring it up to date, than to move. Indeed, rents are also growing exponentially in Madrid: +16% by 2024 (and +10% nationwide). Rents are at an all-time high in most neighborhoods.

Alternatively, you could renovate it and then resell it when the time comes, for a handsome capital gain.

If you're looking for advice on real estate in Madrid, contact our specialists. They will answer all your questions without obligation.

What is the average cost of a complete renovation in Madrid? 

Factors to take into account when calculating the cost of a renovation project in Madrid

It's the beabas, but let's be clear: the exact price of a renovation depends on many factors, such as..:

• The size of the property : logically, the larger the property, the more expensive the work. However, it is possible to obtain a slightly lower cost per square metre for very large properties.
• The scope and complexity of the work to be carried out : do you need to demolish walls, remove floor coverings and old installations, redo the plumbing, electrical system and insulation? All these questions (and many more) will have an impact on the bill.
• The quality of the materials chosen: solid wood or natural stone cost more. But they increase the perceived value of your home.
• Geographical location: in particular, because of the role played by competition and the price of labor. In large cities like Madrid, labor is bound to be more expensive.
• Your negotiating skills.

Work in Madrid: average price per square metre

Nationwide, the average cost per square meter is 550 euros. In Madrid in 2024, the cost is between 500 and 1,500 euros (in the case of high-end renovation, including home automation). The total price will depend on the above-mentioned criteria.

Roughly speaking,a total renovation of standard quality for an 80 m² apartment in the capital costs between 45,000 and 60,000 euros.

Let's list the most important expense items for your future quote:

• For the demolition phase, expect to pay around €15/m². This rate is adjusted according to the material to be broken.
• Once the demolition phase is over, it's time to rebuild.

• Creating a plaster or pladur partition will cost you between €15 and €40/m².
• For parquet installation, allow between €25 and €45/m². It will be cheaper to lay synthetic than natural wood, of course.
• The installation of false ceilings costs between €25 and €50/m².
• To refurbish a bathroom in Madrid, you'll need to calculate between 1,500 and 5,000 euros for a complete overhaul (new tiling, replacement of sanitaryware, installation of a modern plumbing system).
• Beware of the kitchen: it's one of the most expensive rooms to renovate. Here too, prices vary, depending on the furniture and appliances chosen and the size of the room. Having your kitchen designed by Ikea is obviously less expensive than by a specialized kitchen specialist. In short, expect to pay between 3,000 and 9,000 euros for a complete renovation. More if you opt for luxury materials. The range is wide, the possibilities multiple.
• Electrical installation: no renovation work without modernization of the electrical installation in 2024. Electrical panel, light points, sockets, and sometimes home automation. This work is demanding and comes at a cost: estimated at around 3,500 to 4,000 euros in Madrid for an average 100 square meter apartment. To get a clear idea of what you can expect, an electrician in Madrid earns between 18 and 25 euros an hour.
• For paint, expect to pay between just over €1/m² and up to €40, depending on the type of paint (basic white paint, damp-proof paint, textured effect or other). In Madrid, repainting a 100-square-meter home costs between €1,400 and €1,700.

Renovation in Madrid: the budget grid

To get you started, our experts have drawn up a global budget estimate for renovations in the Spanish capital. It is based on "standard" (not luxury) projects.

Renovation prices in Madrid

Source: Terreta Spain

These amounts include the main stages of a complete renovation in Madrid: demolition of floors and walls, reconstruction of partitions, laying new floors, painting, plumbing and electricity.

Partial or total renovation: what impact on the value of your property?

It's tempting to consider a partial renovation, but its impact on the value of your property will inevitably be less: +5 to 10%, compared with +15 to 25% increase in value for a complete renovation.

What impact will your work have on the value of your property in Madrid?

Source: Terreta Spain

Complete renovation is more cost-effective

Our team of renovation experts insists on this point: if you're going to undertake a renovation, there's no point in doing it "piecemeal" unless your budget won't allow for any deviation. A single project, even if more complex, is often more economical in the long term than multiple small-scale renovations.

For example, if you're planning to change some of the floor coverings in a kitchen, it's wiser to renovate the plumbing at the same time. Why would you do this? Because all it takes is a small leak in an old pipe and you'll have to break down a wall shortly after the work has been completed, which is both annoying and costly. Don't forget to remove the plaster(el gotelé in Spanish) before repainting, or to change your bathroom floor if you're installing a walk-in shower in place of an old bathtub.

To make sure you don't get lost and know everything there is to know about renovation in Spain, we recommend you read (or even save to your computer desktop) our glossary.

By entrusting all your work to a single company, you can negotiate a price adjustment for all services. It makes sense.

Terreta Spain is your trusted partner for all your work in Spain. Contact our experts to find out more, they'll be able to guide you in French, English and Spanish of course, whatever the scale of your project.

Before you start, please note that renovation work takes between 3 and 6 months.

What are the additional costs associated with a renovation in Madrid? 

In Madrid, as elsewhere, you shouldn't make the mistake of budgeting ONLY for labor and materials. Let's take a look at what you need to budget for, so you can plan your work objectively and with peace of mind.

1. The cost of building permits : to carry out building work in the Spanish capital, you need to obtain a permit from Madrid City Hall. These licenses cost between 150 and 1,000 euros, depending on the type of permit requested. We'll come back to this below. Overall, we're talking about 3 to 3.5% of the cost of the work.
2. Charges for occupying the public highway: expect to pay around 5 euros a day if you place a skip in front of your building to clear away rubble.
3. City planning fee : around 600 euros for small-scale work, 1,000 euros for major renovations.
4. The municipal construction tax (OCIO) varies between 0.5% and 4% of the cost of the work.
5. VAT (IVA in Spanish): Value Added Tax is 10% for renovation work on a private residence.
6. Margin of safety : this financial cushion should be between 10 and 20% of the overall budget. Its purpose? To enable you to cope if a problem arises: underestimation of the budget, non-compliance with local legislation or poor planning, for example.

Financial aid and grants available for your renovation work in Madrid

In Spain, a range of subsidies are available to encourage energy renovation and support the green transition of the energy-intensive sector. Real estate accounts for around 40% of total greenhouse gas emissions.

Tax deductions can cover up to 35% of the cost of installing solar panels, insulating walls or windows, or replacing inefficient heating systems.

In practical terms, these grants are awarded at the time of payment of Income Tax(IRPF) for Resident Persons. Here are the details:

• 20% discount for work reducing heating/cooling demand by 7% (max €5,000 per property).
• 40% reduction for work reducing non-renewable energy consumption by 30% (max €7,500 per property).
• 60% reduction for residential buildings reducing non-renewable energy consumption by 30% (max €15,000 per dwelling).

Contact the Plan de Rehabilitación Energética de los Edificios (PREE) of the Community of Madrid or the Institute for Diversification and Energy Economics (IDAE) to find out more.

And to find out all you need to know about energy renovation in Spain, read our experts' report.

Terreta Spain's practical tips for optimizing your renovation work in Madrid

Renovation is not an adventure.

• It's essential to request several detailed quotes from specialized companies and compare them. Take a close look at prices, of course, but also deadlines, guarantees and the various services included.
• Think carefully about the materials you choose - they're not secondary. If you can, choose high-quality, solid and environmentally-friendly materials. If your budget is limited, be strategic: find materials that combine quality and competitive price, such as laminate or ceramic.
• Think about reusing existing elements: doors, cupboards, decorative elements can all be renovated at lower cost, so there's no need to replace everything.
• Choose sustainable solutions wherever possible. Investing in energy renovations will reduce your bills and enable you to qualify for financial aid.
• If you're on a tight budget, plan your work intelligently. Start with the most urgent and important items (the electrical system, plumbing), and consider the finishing touches later. The key is not to do to undo.

What are the steps involved in a complete renovation? 

You've factored everything into your budget and now you're wondering how to proceed? Here's a 7-step roadmap for your renovation project.

1. Assessment and preparation: have a specialist carry out a complete technical diagnosis of your property, define your objectives and preferences, and draw up a set of specifications.
2. Drawing up a budget: this must include renovation costs, labor costs and architect's fees where applicable, as well as the ancillary costs mentioned above, such as those relating to work permits or the reserve fund.
3. Regulations and authorizations : bear in mind that it can take up to 3 months to obtain a Licencia de Obra Menor for minor works. Licencia de Obra Mayor for major works can take up to 8 months, especially in large urban areas like Madrid, where there are many applications. Another warning on the administrative front: don't get started without consulting the local authorities about specific regulations. You could be in for some (nasty) surprises. That's why it's essential to turn to specialized, local companies.
4. Choice of professionals: we can't stress this enough, so take the time to look for reliable, experienced professionals. Check their qualifications and insurance, and draw up a detailed contract. Don't leave anything to chance.
5. Financing your work: if you can't pay for your renovations out of your own pocket, you can turn to banks in Spain or in your country of residence. Explore the conditions and make your choice. Note that Spanish banks don't usually include the cost of renovations in their home loans.
6. Fiscal aspects: as we have said, VAT is reduced to 10% (compared with 21% for the usual rate) for renovation work, and there are a number of tax incentives available, particularly for energy-efficient renovation work.
7. Site management: keep a regular check on the progress of your project. If you're at a distance, the best thing to do is entrust your project to a turnkey renovation company, such as Terreta Spain. To find out more about how this type of service provider works, read our article: "Why choose a turnkey renovation company in Spain?

If you're ready to get started, we recommend :

• Read our practical guide to property renovation in Spain, Madrid or elsewhere.
• Contact our Terreta Spain experts. They will be able to advise you and draw up a precise estimate for the complete renovation of your property.

Conclusion 

At the end of 2024, buying an apartment to renovate in Madrid is a very good idea. The Spanish capital has the wind in its sails, and property prices for both purchase and rental are exponential. Opting for a complete renovation is your guarantee of a good market position and good rental yields if your property is to be rented out. It's also a promise of long-term asset enhancement.

Prices for a complete renovation in Madrid vary, but to put it simply, to modernize an 80-square-meter home from top to bottom, you'll need to spend between 45,000 and 60,000 euros.

FAQ: How much does a complete renovation in Madrid cost? 

What is the average cost of a complete renovation in Madrid?

The average cost of renovation per square meter in Madrid in 2024 is between 500 and 1,500 euros. For an 80 m² apartment in the capital, a total renovation of median quality would cost between 45,000 and 60,000 euros.

What are the main costs involved in renovation?

When it comes to renovation, there are several cost items to consider:

1. Demolition: Count on around €15/m², although this rate may vary according to the material to be demolished.
2. Partitions : Building a plaster or pladur partition costs between €15 and €40/m².
3. Parquet: Parquet installation costs between €25 and €45/m², with synthetic parquet a less expensive option than natural wood.
4. False ceilings: The installation of false ceilings is estimated at between €25 and €50/m².
5. Bathroom: A complete bathroom renovation in Madrid can cost between 1,500 and 5,000 euros.
6. Kitchen: Renovating a kitchen ranges from 3,000 to 9,000 euros, depending on the equipment chosen and the materials used. Costs can be higher if you opt for luxury materials.
7. Electrical installation: modernizing the electrical installation for a 100 m² apartment is estimated at between 3,500 and 4,000 euros.
8. Painting: The cost of painting varies from just over €1/m² to as much as €40/m², with a total budget for a 100 m² home of between €1,400 and €1,700.

These estimates can fluctuate according to project specifics and individual choices of materials and equipment.

What are the additional costs associated with a renovation in Madrid?

Ancillary costs include work permits (between 150 and 1,000 euros), municipal construction tax (ICIO) varying between 0.5% and 4% of the amount of the work, and public road occupation charges (around 5 euros per day for a skip).

Which types of renovation offer the best return on investment?

A complete renovation can increase the value of a property by 15 to 25%, while a partial renovation only adds 5 to 10%. Energy renovations are particularly valued for the savings they generate.

Is there any financial aid available for renovation in Madrid?

Yes, a number of financial aids are available, including tax deductions that can cover up to 60% of costs for energy improvement work, such as insulation or the installation of solar panels.

How long does a complete renovation take?

The average lead time for a complete renovation in Madrid is around 3 to 4 months for a standard-sized home (100 m²). This may vary depending on the scope of the work and the time required to obtain the necessary permits.

Sources: Boletín Oficial del Estado, Ordenanza 6/2022, de 26 de abril, de Licencias y Declaraciones Responsables Urbanísticas del Ayuntamiento de Madrid.Ayuntamiento de Madrid, Código técnico de la edificación, Habitissimo, IDAE, Agencia Tributaria