Undertaking renovation work in Spain not only increases the value of your property and improves the comfort of its occupants but also ensures maximum return on investment. For expatriates and foreign investors, using a turnkey renovation company offers numerous advantages. And for those who manage multiple rentals, sometimes in different regions, this service represents a considerable time saving.
So, "why opt for a turnkey renovation company in Spain?" The experts at Terreta Spain tell you everything.
Understanding the renovation market in Spain
First of all, to understand the usefulness of a turnkey renovation company, it is necessary to know the context in which they offer their services.
The renovation sector in Spain is booming
We have written it several times on this blog, in recent years, the renovation market in Spain is in great shape. From January to June 2024, the authorities issued as many building permits as for the entire year 2023. How can this be explained?
- The Covid-19 pandemic has changed mindsets. This unprecedented crisis has made us aware of the need to feel good at home and live in a functional space.
- In Spain, as in Europe, ecological concern is growing. This leads many owners to consider work to improve the energy efficiency of their homes.
- The interest of foreign investors in Spain is growing; they now buy 15% of the properties available on the market. Most of the time, they modernize apartments that have remained in their original condition to make them attractive properties for rental.
- Renovated properties rent faster and for more than others (15% on average).
- The explosion of tourist rentals (+ 9% of tourist accommodation between February 2023 and February 2024) leads the owners concerned to offer irreproachable properties to travelers.
- House flipping is gaining ground in the country. This process, well known to experienced investors, consists of buying a property in poor condition at a low cost, renovating it, and reselling it immediately to maximize profits.
- Renovating a property increases its market value by more than 30% on resale. Buyers prefer turnkey properties and are discouraged by the need to undertake work.
To delve deeper into this point, read our full article "All about real estate renovation in Spain".
Local regulations
Before embarking on a renovation, it should be noted that in Spain, there are two main types of building permits:
- La Licencia de Obra Menor for small jobs, such as modernizing a bathroom for example.
- La Licencia de Obra Mayor for major works, such as the restructuring of space.
In addition, there are 17 autonomous communities in the country and urban planning rules change from one community to another. In other words, going it alone involves research and a thorough understanding of these regulations to avoid disappointment.
What is a turnkey renovation company?
This is the heart of the matter. If you are not familiar with the concept, be aware that a turnkey renovation company offers an all-in-one service and takes care of all the work, from design to final completion.
The owner delegates 100% of the project to the mandated company, which therefore manages:
- The initial property assessment
- The budget estimation
- The project design and its meticulous planning
- Obtaining building permits
- The coordination of the various trades involved in the project
- The monitoring of the works
- Quality control
- Finally, the final delivery of the project
The ultimate benefit? The owner has 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 is also perfectly suited to owners who are not used to managing work and to those who simply do not have the time or desire to deal with it.
The main challenges of renovation in Spain for foreign buyers
When a foreign or non-resident buyer purchases property in Spain and needs to consider renovation work, they face 7 major challenges:
- Distance in the case of an owner who does not live on site.
- The language barrier: how to manage work, communicate with local authorities and tradesmen in a language that one does not necessarily master?
- Lack of knowledge of local regulations that we mentioned above. A local turnkey renovation company knows these regulations inside out. This expertise can avoid costly delays related to administrative issues.
- The challenge of finding reliable tradesmen in a competitive sector that they are not familiar with. A company established in Spain benefits from a network of qualified tradesmen, knows the best material suppliers, is comfortable negotiating prices, etc. All this field experience translates into quality work, optimized costs, and suitable materials (for the local climate, for example).
- Budget control: for a 100 m2 property, the budget for a complete renovation in Spain is generally between €30,000 and €50,000. When undertaking work, managing costs is always a difficult task. It is even more so when you do not live on site or are looking to maximize the profitability of your property. To find out how much you would spend on your renovation project, request a quote online from our specialists.
- Keeping to deadlines: a renovation project in Spain takes between 3 and 6 months. Sometimes longer if it is very complex (size, type of property, etc.). It is the same in other countries of course, but when you buy without living on site, as many investors do, these deadlines can quickly be extended.
- Misunderstanding of international standards: this can happen. It is always more reliable to entrust your project to a company that has experience with international clients.
As you will have understood, if you are an expatriate or have invested from abroad, you will find it very comfortable to be able to rely on a full-service company experienced in managing work remotely, simply because its services are tailored for this. To discuss your project, Contact us.
The 8 stages of a turnkey renovation in Spain
We mentioned it very briefly, but let's focus on the concrete process of your turnkey renovation project in Spain:
- Specifications: this is the preliminary meeting with the owner. It is 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 to improve the existing structure and the circulation in the space? These are the kind of questions addressed at this stage to define the objectives, identify the constraints and list the order of priorities.
- Budget estimate: in light of this precise audit, the company establishes a budget estimate, also as precise as possible.
- Project design and planning: it is during this decisive stage that the plans are drawn up and the materials are chosen. It is also here that the project is validated with the client. This phase is therefore essential to ensure that the final result corresponds to the expectations expressed by the owner of the property.
- Obtaining permits
- Execution of work and site monitoring: the company then puts on its conductor's hat. It coordinates the various trades involved on the site (bricklayer, carpenter, roofer, electrician, plumber, etc.), ensures regular monitoring of the work and performs regular quality controls. The owner is kept informed of the progress of the site through regular reports. As part of a remote renovation, photos and videos of the site are sent to the owner, and videoconference meetings are held throughout the work.
- Quality control and delivery: once the work is completed, the company performs 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 decoration: some companies, like Terreta Spain, offer a furnishing and decoration service. That's what "turnkey" means.
Discover the practical guide to renovation in Spain written by our experts.
Note that Terreta Spain's specialists also take care of renting your property for you. To make an appointment with them, it's here.
What criteria should you use to choose your turnkey renovation company in Spain?
How to choose a trustworthy company?
To avoid making the wrong choice of your turnkey renovation company, you must carefully evaluate the following criteria:
- The experience and seniority of the company in the Spanish market
- Customer reviews available on the Internet
- The ability to communicate in your language
- Transparency in quotations and contracts
- The company must possess the necessary insurance and certifications to operate in Spain (certificate of civil liability, ten-year guarantee covering damages compromising the structural integrity of a building for 10 years).
- References and projects completed for foreign clients in particular.
Examples of completed projects
Always ask to see examples of successful renovations. It's even better if the company can present you with projects similar to yours. This will allow you to see clearly the quality of their work and their ability to meet your expectations.
To give you an idea of the type of projects we have led and that we could carry out for you at Terreta Spain, here are two concrete examples that will help you to envision the possibilities.
A rental project in the Cabanyal, the most popular district of Valencia
For this project, our client invested just under 180,000 euros, including the work. He spent just over 80,000 euros to redo everything and adapt the apartment to the needs of a student shared apartment. 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 more than 14% gross profitability.
Take a look by clicking here
Madrid, in the heart of the central district of Lavapiés
A lucrative rental investment in the heart of the Spanish capital and 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 receives 14,400 euros in annual rent, having spent 304,000 euros, including the work. With stable returns and regular appreciation in value, it's a "complete success" for this investment.
Take a look by clicking here
What mistakes should you absolutely avoid when carrying out work in Spain?
Always be vigilant about the following:
- Underestimating costs: always allow a margin for unforeseen events. A qualified turnkey renovation company will help you establish a realistic budget.
- Poor schedule management: beware of delays, as they can have very significant 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 essential. If you apply late or make a mistake in the type of license to obtain, you risk significant fines and sometimes even the obligation to demolish the work carried out. The advantage of a turnkey renovation company is that it takes care of this aspect for you.
Planning work? Contact the experts at Terreta Spain, your renovation partner in Spain.
Conclusion
Whether it's to create a retirement supplement, build up assets or generate passive income, investing in Spain is a good idea. But investing and renovating is even better. A complete renovation increases the value of properties, both for rental and resale.
Entrusting your renovation project means freeing yourself from a stressful and time-consuming constraint. For expatriate buyers and foreign investors, being able to count on the services of a turnkey renovation company established locally is an ideal solution.
FAQ: Turnkey renovation companies in Spain
How much does a turnkey renovation cost in Spain?
In Spain, a total renovation costs on average just under 30,000 euros. For a 100 m2 property, you should expect a budget of 30,000 to 50,000 euros. The price per square meter varies between 400 and 900 euros depending on the scale and nature of the project.
What insurance is required for a renovation in Spain?
Renovation companies must 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 scale of the project. A light renovation can take a few weeks, while a complete renovation can take 3 to 6 months. Obtaining permits can also influence deadlines.
Can the project be monitored remotely?
Yes, most turnkey companies offer remote monitoring services, with regular reports, photos and videos of the site, and videoconference meetings.
What types of buildings are eligible for a turnkey renovation?
All types of properties can benefit from a turnkey renovation: detached houses, apartments, historic buildings, commercial premises, etc.
How are unforeseen events managed?
An experienced turnkey company will be able to anticipate most unforeseen events. In the event of an unexpected problem, they will quickly propose suitable solutions while maintaining transparent communication with the client.
Sources : Idealista, CSAE, El País
