How much does a complete renovation cost in Madrid?

Have you found a gem in Madrid that needs renovating to make it shine? Does your apartment need a refresh, and you don't know how much it will cost? You've come to the right place.

Undertaking the renovation of a property in Spain is an ambitious and promising project, offering increased comfort, better space layout, greater profitability, and a growing asset value. It's a win-win situation.

So, "how much does a complete renovation in Madrid cost?", the answer is in this article, written by the experts at Terreta Spain.

Buying a property in perfect condition or renovating yourself in Madrid, that is the question

With property prices increasing by nearly 19% in 2024 in the Spanish capital, choosing to acquire an apartment or house to renovate is inevitably a good idea. Because while these properties cost less than average, once the work is completed, they can compete with the most modern and desirable homes, those that are rented and bought for more than others.

Are you hesitating? Then, let's recap the advantages of a complete renovation:

• Renovating means adapting the accommodation to your needs or those of future occupants
• It means improving the energy performance of a dwelling. In 2024, this is a strong argument
• Undertaking major works also means being able to rent out at a higher price, if your property is intended to accommodate tenants
• Finally, it increases the value of the property upon resale and therefore, your assets. You can expect a price increase of around 15 to 25% as soon as the work is completed. Sometimes more.

These arguments remain valid despite the average 30% 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 have already bought: it is more advantageous to renovate your home, adapt it to your new needs, or update it than to move. Indeed, rents are also experiencing exponential growth in Madrid: +16% in 2024 (and +10% nationally). They have reached their historical maximum in most districts.

Alternatively, you could also renovate it and then resell it when the time comes with a nice capital gain.

If you are 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 consider in the cost of a renovation in Madrid

This is the basics, but it must be specified: the exact price of a renovation depends on multiple factors, such as:

• The surface area of the property: logically, the larger the property, the more expensive the work will be. However, it is possible to obtain a slightly lower cost per square meter in the case of very large areas.
• The scale and complexity of the work to be carried out: is it necessary to demolish walls, remove floor coverings, outdated installations, redo the plumbing, the electrical system, the insulation? So many questions (and many others) that 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.
• The geographical location: mainly due to the role played by competition and the cost of labor. In large metropolises like Madrid, the latter will inevitably cost more.
• Your negotiating skills.

Renovation Work in Madrid: Average Price per Square Meter

Nationally, renovation work costs an average of 550 euros per square meter. In Madrid in 2024, the cost ranges between 500 and 1500 euros (for high-end renovations, including home automation). The total price will depend on the criteria mentioned above.

Schematically, we could say that a complete renovation of standard quality, for an 80 m² apartment in the capital, costs approximately between 45,000 and 60,000 euros.

Let's list the most significant expenditure items in your future quote:

• For the demolition phase, expect to pay around €15/m². This rate is adjusted according to the material that needs to be removed.
• Once the demolition phase is complete, reconstruction is necessary.

• Creating a partition in plaster or Pladur will cost you between €15 and €40/m².
• For the installation of parquet flooring, expect to pay between €25 and €45/m². It will be cheaper to install synthetic flooring than natural wood, of course.
• The installation of false ceilings costs between €25 and €50/m².
• For the renovation of a bathroom in Madrid, expect to pay between 1,500 and 5,000 euros for a complete renovation (installation of new tiles, replacement of sanitary equipment, installation of a modern plumbing system).
• Pay attention to the kitchen, as it is one of the most expensive rooms to renovate. The price varies, depending on the equipment chosen for the furniture, appliances, and the size of the room. Having your kitchen designed at Ikea obviously costs less than at a specialized kitchen designer. In short, expect to pay between 3,000 and 9,000 euros for a complete renovation, and more if you opt for luxury materials. The range is wide, and the possibilities are multiple.
• Electrical installation: no renovation work should be done without modernizing the electrical installation in 2024. Electrical panel, light points, sockets, and sometimes home automation. This work is demanding and has a cost: it is estimated at around 3,500 to 4,000 euros in Madrid for an apartment of 100 square meters on average. To have a clear idea of what awaits you, an electrician in Madrid earns between 18 and 25 euros per hour.
• For painting, expect to pay a little over €1/m² and up to 40 euros depending on the type of paint (basic white paint, anti-humidity paint, textured effect, or other). In Madrid, repainting a 100 square meter apartment costs between 1,400 and 1,700 euros.

Renovation in Madrid: the budget grid

To help you start planning, our experts have established an overall estimate of the budget grid for renovations in the Spanish capital. It is based on "standard" (and not luxurious) projects.

Renovation prices in Madrid

Source: Terreta Spain

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

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

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

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

Source: Terreta Spain

Opting for a complete renovation is more profitable

Our team of renovation experts insists on this point: if you undertake a renovation, there is no point in doing it piecemeal unless your budget does not allow for any deviation. A single project, even if it is more complex, is often more economical in the long term than multiple small renovations.

For example, if you are considering changing the coverings in a kitchen, it is wiser to renovate the plumbing at the same time. Why? Because a small leak in an old pipe is enough to require breaking a wall shortly after the work, which is infuriating and costly. Also, consider removing the textured paint (el gotelé in Spanish) before repainting, or changing the floor of your bathroom if you install a walk-in shower instead of an old bathtub.

To avoid getting lost and to know everything about the renovation lexicon in Spain, we advise you to read (or even save on your computer desktop) our glossary.

By entrusting all of your work to a single company, you can negotiate a price adjustment for all services. Logical.

Terreta Spain is your trusted partner for all your projects in Spain. Contact our experts for further assistance; they will guide you in French, English, and Spanish, of course, regardless of the scale of your project.

Note before starting: allow between 3 and 6 months for a renovation.

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

In Madrid, as elsewhere, it is imprudent to budget ONLY for the cost of labor and materials. Let's review together what you need to plan for in order to consider work objectively and with peace of mind.

1. The cost of work permits: To carry out work in the Spanish capital, you must obtain a permit from the Madrid City Council. These licenses have a cost, ranging from 150 to 1,000 euros depending on the nature of the permit requested. We will come back to this below. Overall, we are talking about 3 to 3.5% of the amount of the work.
2. Fees for occupying public roads: Allow around 5 euros per day if you place a skip in front of your building to clear rubble.
3. The City's Urban Services Tax: approximately 600 euros for small-scale works, 1,000 euros for large-scale renovations.
4. The municipal tax on construction (OCIO) varies between 0.5 and 4% of the amount of the work.
5. VAT (IVA in Spanish): the Value Added Tax is 10% for renovation work in a private residence.
6. Safety margin: This financial buffer should be between 10 and 20% of the overall budget. Its usefulness? To allow you to cope if a problem arises: underestimation of the budget, non-compliance with local legislation or poor planning, for example.

Financial aid and subsidies available for your renovation work in Madrid

In Spain, there are a range of subsidies available, in particular to encourage energy renovations and support the green transition of the sector, which is very energy-intensive. Approximately 40% of total greenhouse gas emissions are attributed to real estate.

Tax deductions can cover up to 35% of the costs for the installation of solar panels, thermal insulation of walls or windows, or the replacement of inefficient heating systems.

Specifically, this aid is granted when paying the Tax (IRPF) for Resident Individuals. Here are the details of the scale:

• 20% reduction for work reducing the demand for heating/cooling 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).

Find out more from the Plan de Rehabilitación Energética de los Edificios (PREE) of the Community of Madrid or the Institute for Diversification and Energy Saving (IDAE).

And to learn all about energy-efficient renovation in Spain, check out our experts' guide.

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

You don't embark on renovation work like you go on an adventure.

• It is imperative to request several detailed quotes from specialized companies and compare them. Look carefully at the prices, of course, but also at the deadlines, guarantees, and the different services included.
• Think carefully about the materials you are going to choose; they are not secondary. If you can, choose quality, solid and ecological materials. If your budget is limited, be strategic: find materials that combine quality and competitive prices, such as laminate and ceramics.
• Consider reusing existing elements: doors, cupboards, decorative elements can be renovated at a lower cost; there is no need to replace everything.
• Whenever possible, prioritize sustainable solutions. Investing in energy-efficient renovations will reduce your bills and allow you to qualify for financial aid.
• A tip if your budget is tight: plan your work intelligently. Start with the most urgent and important tasks (electrical system, plumbing), and consider the finishes later. The key is to avoid doing work that will need to be undone.

What are the steps involved in a complete renovation? 

You've included everything in your budget and are now wondering how to proceed? Here is a roadmap in 7 key steps for your renovation work.

1. Assessment and preparation: have a specialist carry out a complete technical diagnosis of your property, define your objectives and preferences, and draw up specifications.
2. Budget establishment: this budget must include renovation costs, labor costs, architect's fees where applicable, as well as the additional costs mentioned above, such as those relating to work permits or the reserve fund.
3. Regulations and authorizations: bear in mind that the time it takes to obtain a Licencia de Obra Menor for minor works can be up to 3 months. The time it takes to obtain a Licencia de Obra Mayor for major works can be as long as 8 months, especially in large conurbations such as Madrid, where there are many applications. Another warning on the administrative front: don't start work without consulting the local authorities about specific regulations. You may have some (unpleasant) surprises. That's why it's essential to turn to specialist companies with a local presence.
4. Choice of professionals: we can't say it enough, take the time to look for reliable and experienced professionals. Check their qualifications and insurance, and draw up a detailed contract. Nothing should be left to chance.
5. Financing your work: if you can't pay for your renovations with your own funds, don't worry, you can turn to banks in Spain or in your country of residence. Explore the conditions and make your choice. Note that Spanish banks do not usually include the cost of the work in mortgage loans.
6. Tax aspects: as we've said, VAT is reduced to 10% (compared with 21% for the usual rate) for renovation work, and there are several tax breaks, particularly for energy renovation work.
7. Construction site management: Monitor the construction site regularly. If you are remote, the best course of action is to entrust your project to a turnkey renovation company, such as Terreta Spain. To learn all about how these types of service providers operate, read our article: "Why opt for a turnkey renovation company in Spain?".

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

• Read our practical guide to real estate renovation in Spain, in Madrid or elsewhere.
• To 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 is booming, and property prices for both purchase and rental are rising exponentially. Opting for a complete renovation is a guarantee of positioning yourself well in the market and obtaining good rental yields if your property is intended for rental. It's also a promise of long-term asset appreciation.

The prices of a complete renovation in Madrid vary, but to put it simply, bear in mind that to modernize an 80 square meter home from top to bottom, you will have 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 a 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 expenses to consider when renovating?

When renovating, several items of expenditure must be taken into account:

1. Demolition: Allow around €15/m², although this price may vary depending on the material to be demolished.
2. Partitions: The construction of a plasterboard or Pladur partition costs between €15 and €40/m².
3. Parquet flooring: For the installation of parquet flooring, allow between €25 and €45/m², with a less expensive option for synthetic parquet compared to natural wood.
4. False ceilings: The installation of false ceilings is estimated at between €25 and €50/m².
5. Bathroom: A complete renovation of a bathroom 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 chosen equipment and materials. Costs may be higher if you opt for luxury materials.
7. Electrical Installation: Modernizing the electrical installation for a 100 m² apartment is estimated between 3,500 and 4,000 euros.
8. Painting: The cost of painting varies from just over €1/m² to up to €40/m², with a total budget for a 100 m² property ranging between 1,400 and 1,700 euros.

These estimates may fluctuate depending on the specifics of the project and individual choices regarding materials and equipment.

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

Additional costs include building permits (between 150 and 1,000 euros), the municipal tax on construction (ICIO) varying between 0.5% and 4% of the amount of the works, as well as fees for occupying the public highway (approximately 5 euros per day for a skip).

What types of renovations 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 brings a valuation of 5 to 10%. Energy-efficient renovations are particularly valued due to the savings they generate.

Are there financial aids available for renovation in Madrid?

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

How long does it take to complete a full renovation?

The average time for a complete renovation in Madrid is approximately 3 to 4 months for a standard-sized property (100 m²). This timeframe may vary depending on the scale of the work and the time it takes 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