Increasing Property Value: How to Boost Your Real Estate's Worth

Why is it so important to increase the value of your property?

Increasing the value of your real estate offers significant advantages. Renovations, upgrades, and other improvements to your home not only enhance the living environment but also increase the market appeal of the property.

A higher value often leads to a better selling price and a shorter time to achieve it. Buyers are more willing to pay a higher cost for a well-maintained and modernized property. Additionally, banks find it easier to finance these properties, expanding the pool of potential buyers.

How is a property’s value determined?

Before knowing which changes can be made, it’s necessary to know the current value of the property. Numerous factors are involved, such as location, size, condition, age of the property, or the number of usable or built square meters.

Current market trends and economic conditions also play an important role. To understand the current situation, you can download our annual report.

Some of these factors, like the location or the year your house, land, or apartment was built, are beyond your control. However, you have the opportunity to increase your property’s value through specific measures, such as renovations and upgrades.

With the help of a professional familiar with the sector, it will be easier to gather this data to carry out the appropriate strategy. At Engel & Völkers, we’re ready to help you appraise your property.

Benefits of increasing the value of a property

Conducting this appraisal and then increasing the value of a property will bring various benefits to your home:

Economic benefits

The value of the house will increase when reappraised, meaning the profit earned will exceed the investment made. This is often one of the main advantages chosen by investors or homeowners to carry out the entire improvement process.

Practical benefits

Sometimes, the renovations made to increase a house’s value result in practical improvements for daily life, making the house more functional—a benefit valued by buyers or tenants.

Emotional benefits

The changes or renovations will create a better appearance, making the property more attractive, increasing its value and desirability for purchase or rent.

Tips to increase the value of a property with renovations

Not all measures or changes you want to make result in the same increase in property value. While minor aesthetic improvements can have positive effects, other homes or properties may require major work.

For luxury properties, significant investments in facilities may be worthwhile to achieve substantial value appreciation, while rural homes or apartments in older buildings may require different priorities. Some of the most effective measures for property appreciation include:

Energy efficiency certificate

One of the most common practices in real estate investment is improving energy efficiency. Measures such as replacing heating systems, windows, adding insulation, or installing solar panels improve the home’s energy efficiency and can increase its value by 5% to 25%.

Additionally, according to Royal Decree 235/2013, of April 5, buyers or tenants must have this certificate during the transaction, making it essential to have the best possible rating.

Kitchen modernization

A modern, well-equipped kitchen—or even having one outdoors—can translate into an increased value for the property. High-quality countertops, energy-efficient appliances, and attractive lighting are important elements to consider.

The investment for a new kitchen can start at €5,000 and go significantly higher depending on the equipment. Just before selling, modernizing the existing kitchen is often more cost-effective, as the increase in value for the house is approximately 5%.

Bathroom renovation

Modernized bathrooms equipped with high-quality fixtures, tiles, and walk-in showers can increase the property’s value by 10% to 20%. The cost for a complete bathroom renovation ranges between €10,000 and €20,000. Sometimes, new bathtubs or modern tiles are sufficient for a value increase.

Increased storage

An often-overlooked aspect is storage or space to store clothes or items. For example, having a well-furnished kitchen or built-in wardrobes can make a difference when increasing the property’s value.

Improvement of elements

Changing the flooring or walls of your home, as well as tiles, can help enhance its appearance. Additionally, opting for wooden flooring can improve energy efficiency, reducing heating or air conditioning consumption.

Attic or basement conversion

Some homes or properties may have impractical layouts or become outdated if they are in older buildings or only partially renovated.

Converting unused spaces into additional rooms increases the property’s value. The conversion or expansion is especially profitable in areas with housing shortages. The value increase and costs depend on the specific property.

Tips to increase the value of a property without renovations

Aesthetic renovations

Newly painted walls and modern lighting enhance the property’s appearance with relatively little effort. These measures can reduce selling time and achieve a value increase of approximately 5% to 10%.

Even if painting and installing new flooring can be costly, it’s often offset by the property’s appreciation. DIY efforts can further increase the profit. Details such as letting in natural light can also help sell a house for a higher price.

Exterior redesign

A well-maintained entrance, a beautiful garden, or a freshly painted facade can enhance the appeal of your property and result in a value increase of approximately 5%. A clean, tidy, and welcoming presentation of the property is also favorable for sales, although it doesn’t constitute a real value increase.

Home automation

Another aspect that can improve energy efficiency is home automation. This involves updating plugs and light bulbs in rooms to smarter ones to improve the safety, comfort, and well-being of a home.

These simple elements not only increase the property’s value but could also make a difference during a property sale or rental transaction.

Property value increase: costs and benefits of renovations

When making improvements, it is crucial to carefully examine the relationship between costs and the potential value appreciation. While simple measures, such as painting walls or the facade, immediately enhance the appearance, the financial benefits of more extensive renovations can vary.

For properties in remote areas, an energy-efficient renovation can bring value appreciation. However, the effect on the property’s value increase is smaller compared to similar properties in urban areas, even if the renovation costs are similar.

The costs for renovations that increase the value of the property, such as kitchen modernization, bathroom upgrades, or energy-efficient improvements, typically range between €5,000 and €50,000, depending on the scope and quality of the work.

In contrast, the value increase of the property is usually between 15% and 20%, depending on the measure. Energy-efficient renovations are particularly in demand and can achieve a value increase of up to 25% as potential buyers prefer energy-saving properties.

Investments are especially profitable if government funding programs cover a significant portion of the costs. DIY efforts reduce expenses and, therefore, lead to a greater increase in the property’s value.

Property appreciation with the right strategy

Increasing the value of your home requires careful planning and specific measures. Whether through renovations, modernizations, or exterior enhancements, with the right investments, you can significantly improve your home’s value appreciation.

The foundation for an appropriate strategy is a comprehensive property appraisal. Engel & Völkers real estate agents are happy to assist you with their expertise and knowledge in property valuation and strategies to increase the value of your property.

Sell your home or land successfully, quickly, and at an optimized sale price with us. Contact us now for a no-obligation consultation and a free property appraisal conducted by our experienced real estate professionals.