Carrying out renovation work in Spain not only enhances the value of your property and the comfort of its occupants, but also ensures maximum return on your investment. For expatriates and foreign investors, using a turnkey renovation company offers many advantages. And for those who manage several rentals, sometimes in different regions, this service represents a considerable time-saver. 

 So "why opt for a turnkey renovation company in Spain?", the experts at Terreta Spain tell you all about it. 

 Understanding the renovation market in Spain

First and foremost, to understand the usefulness of a turnkey renovation company, you need to know the context in which they offer their services. 

Spain's renovation sector is booming

As we've written several times on this blog in recent years, the Spanish renovation market is in great shape. From January to June 2024, the authorities issued as many building permits as for the whole of 2023. Why is this? 

• The Covid-19 pandemic changed people's minds. This unprecedented crisis has made us aware of the need to feel at home and to live in a functional space.
• In Spain, as in the rest of Europe, concern for the environment is on the rise. As a result, many homeowners are looking to improve the energy efficiency of their homes. 
• Foreign investors are increasingly interested in Spain, and today purchase 15% of the properties available on the market. For the most part, they are upgrading untouched apartments into attractive rental properties.
• Renovated properties rent faster and more expensively than others (15% on average).
• The explosion in tourist rentals (+ 9% of tourist accommodations between February 2023 and February 2024) means that property owners need to offer impeccable properties to travelers. 
• House flipping is gaining ground in France. Well-known to experienced investors, this process involves buying a property in poor condition at low cost, renovating it and reselling it in the process to maximize profits. 
• Renovating a property increases its market value by over 30% on resale. Buyers tend to prefer turnkey properties, and are discouraged by the need to undertake work. 

 To find out more, read our full article "Everything you need to know about property renovation in Spain" .

 Local regulations

 Before embarking on a renovation project, you should be aware that in Spain there are two main types of building permit: 

• La Licencia de Obra Menor for small jobs, such as bathroom modernization. 
• La Licencia de Obra Mayor for major projects, such as restructuring the space. 

 What's more, there are 17 autonomous communities in the country, and planning regulations vary from one community to the next. In other words, going it alone requires a great deal of research and a thorough understanding of these regulations to avoid setbacks.  

 

What is a turnkey renovation company? 

 That's what it's all about. If you're not familiar with the concept, you should know thata turnkey renovation company offers an all-in-one service, taking charge of the entire project from conception to completion. 

The owner delegates 100% of the project to the commissioned company, which then manages : 

• Initial property valuation
• Budget estimate
• Project design and meticulous planning
• Obtaining work permits
• Coordination of the various trades involved on the site
• Follow-up work
• Quality control
• Finally, final delivery of the project

 The final plus? The owner benefits from a single point of contact from the first to the last day of the project. 

 This type of service is therefore ideal for non-residents, but it's also perfectly suited to homeowners who are not used to managing work, and those who simply don't have the time or desire to do it. 

 Spain's main renovation challenges for foreign buyers

 When a foreign or non-resident buyer buys in Spain and needs to consider renovation work, he or she faces 7 major challenges: 

1. Distance in the case of a non-resident owner.
2. The language barrier: how do you manage work, communicate with local authorities and craftsmen in a language you don't necessarily master? 
3. Ignorance of local regulations, as mentioned above. A local turnkey renovation company knows these regulations inside out. This expertise can avoid costly delays due to administrative problems.  
4. That of finding reliable craftsmen in a competitive sector with which they are unfamiliar. A company established in Spain benefits from a network of qualified craftsmen, knows the best suppliers of materials, is at ease negotiating prices, etc. All this experience in the field translates into quality work, optimized costs and materials adapted (to the local climate, for example). All this experience in the field translates into quality work, optimized costs and materials adapted (to the local climate, for example).
5. Budget control: for a 100 m2 home, the budget for a complete renovation in Spain is generally between €30,000 and €50,000. When undertaking renovation work, managing costs is always a difficult task. It's even more so when you're not living locally, or when you're looking to make the most of your property. To find out how much you'd pay for your renovation project, ask our specialists for an online quote.
6. Meeting deadlines: a renovation project in Spain takes between 3 and 6 months. Sometimes longer if it's very complex (size, type of property, etc.). It's the same in other countries, of course, but when you're buying without living locally, as many investors do, these timescales can quickly become longer. 
7. Misunderstanding international standards: it can happen. It is always more reliable to entrust your project to a company that has experience with international customers. 

 As you can see, if you're an expatriate or have invested from abroad, you'll find it very comfortable to be able to rely on a full-service company experienced in remote site management, simply because its services are tailor-made for you. To discuss your project, please contact us.

The 8 stages of a turnkey renovation in Spain

 We've touched on this very briefly, but let's take a closer look at the concrete details of your turnkey renovation project in Spain: 

• Specifications: this is the preliminary meeting with the owner. It's designed to define your expectations and objectives. 
• Property audit: this is the first concrete phase, during which the company carries out a detailed assessment of the property to be renovated: what is the state of the insulation? How can the existing structure and circulation be improved? These are the kinds of questions addressed at this stage to define objectives, identify constraints and list priorities. 
• Budget estimate: in the light of this detailed audit, the company draws up a budget estimate, which is also as accurate as possible. 
• Project design and planning: it's during this decisive stage that plans are drawn up and materials chosen. It is also here that the project is validated with the customer. This phase is therefore essential to ensure that the final result will meet the expectations formulated by the property owner. 
• Obtaining permits
• Execution of work and site supervision: the company then dons the role of conductor. It coordinates the various trades working on the site (mason, carpenter, roofer, electrician, plumber, etc.), monitors the work on a regular basis and carries out regular quality controls. The owner is kept informed of progress through regular reports. In the case of remote renovation, photos and videos of the worksite are sent to the homeowner, and videoconference meetings are held throughout.
• Quality control and delivery: once the work has been completed, the company carries out a final check to ensure that the project meets the expectations of the owner's specifications. It provides all the necessary documentation, including warranties and certificates of conformity. 
• Furnishing and decorating: some companies, like Terreta Spain, offer a furnishing and decorating service. Now that's turnkey.  

 Discover the practical guide to renovation in Spain, written by our experts.

 Please note that Terreta Spain's specialists can also rent out your property for you. To make an appointment with them, click here. 

 

How do you choose a turnkey renovation company in Spain?

 How do you choose a company you can trust?

 To make sure you don't make a mistake when choosing your turnkey renovation company, you should carefully evaluate the following criteria: 

• Experience and seniority in the Spanish market
• Customer reviews on the Internet
• The ability to communicate in your own language
• Transparent quotes and contracts
• The company must have the necessary insurance and certification to operate in Spain (civil liability certificate, ten-year guarantee covering damage that compromises the solidity of a structure for 10 years).
• References and projects completed for foreign customers in particular

 Examples of completed projects

 Always ask to see examples of successful renovations. It's even better if the company can show you projects similar to yours. This will give you a clear idea of the quality of their work and their ability to meet your expectations. 

 To give you an idea of the type of projects we have carried out and could carry out for you at Terreta Spain, here are two concrete examples to help you get started. 

A rental project in Cabanyal, Valencia's most prominent district

 For this project, our customer invested just under 180,000 euros, including work. He spent just over 80,000 euros to redo everything and adapt the apartment to the needs of a student flat-share. Today, the property has 4 bedrooms and two bathrooms, and has been brought up to date with modern facilities. 

And "it's a strike": the owner can count on over 14% gross profitability.  

Click here to take a look

Madrid, in the heart of the central Lavapiés district

 A lucrative rental investment right in the center of the Spanish capital, in a listed building - that's the challenge our experts took up. In this 55 square meter apartment, they saw the opportunity to create a second bedroom for maximum profitability. 

The owner earns 14,400 euros in annual rental income, having spent 304,000 euros, including works. With stable returns and a steady rise in value, this is a "full house" for this investment. 

 Click here to take a look

What are the mistakes to avoid when working in Spain? 

 Always keep an eye on the following points: 

• Underestimating costs: always allow for contingencies. A qualified turnkey renovation company will help you establish a realistic budget.
• Poor schedule management: beware of delays, which can have serious financial consequences. If you want to rent out your property and make it profitable as quickly as possible, pay particular attention to this point. 
• Don't neglect the administrative side of the project: permits are the beabas. If you apply late, or get confused about the type of license you need, you risk substantial fines and sometimes even the obligation to demolish the work you've done. The advantage of a turnkey renovation company is that it takes care of this for you. 

 

Work in progress? Contact the experts at Terreta Spain, your construction partner in Spain. 

 Conclusion

 Investing in Spain is a good idea, whether you're looking to supplement your retirement, build wealth or generate passive income. But investing and renovating is even better. A complete renovation increases the value of the property, both for rental and resale. 

Entrusting your renovation project to us means freeing yourself from a stressful and time-consuming constraint. For expatriate buyers and foreign investors, being able to count on the services ofa turnkey renovation company established locally is an ideal solution. 

FAQ : Turnkey renovation companies in Spain

 How much does a turnkey renovation in Spain cost?

In Spain, total renovation costs average just under 30,000 euros. For a 100 m2 home, you're looking at a budget of between 30,000 and 50,000 euros. The price per square metre varies between 400 and 900 euros, depending on the size and nature of the project.

 What kind of insurance is needed for a renovation in Spain?

Renovation companies are required to have civil liability insurance. For certain types of work, a ten-year guarantee is also required.

 How long does a turnkey renovation take?

The duration depends on the scope of the project. A light renovation may take a few weeks, while a full renovation may take 3 to 6 months. Obtaining permits can also influence the time required.

 Can the project be monitored remotely?

Yes, most turnkey companies offer remote monitoring services, with regular reports, photos and videos of the worksite, and videoconference meetings.

 What types of buildings are eligible for turnkey renovation?

All types of property can benefit from turnkey renovation: single-family homes, apartments, historic buildings, commercial premises, etc.

 How are unforeseen events handled?

An experienced turnkey company can anticipate most unforeseen events. In the event of an unexpected problem, it will quickly propose appropriate solutions, while maintaining transparent communication with the customer.

 Sources : Idealista, CSAE, El País