Investment in luxury properties is one of the safest in the Spanish market today. So that your property does not drop in value, it is necessary to keep it in good condition and take care of it. The appraisal of a home is conditioned by several factors such as the location, the address, the m2 of the available plot, the extension permits, licenses or the absence of them, the state of the building, the demand and supply in the area, etc. .
Some factors we cannot change such as the location or the legislation, which is very strict on the island of Mallorca regarding new constructions, making it impossible to increase the m2 of the property and thus increase the value of the property in some cases. However, some reforms or improvements can be carried out that will increase the value and benefits of the initial investment when selling your property by around 10-15%, which we will talk about below.
As a general rule, to increase the value it is necessary to increase the efficiency of the home, both energy and spatial. We will start with general works, those that take more work and require a larger investment:
- Underfloor heating: offers a very comforting air and ground temperature for the inhabitants. It can be installed in all rooms, or only inthe most frequented areas. Underfloor heating is an expensive installation, which has been recovered over the years since this type of heating is 15-20% more efficient than conventional heating. By not drying the air, as conventional heating does, underfloor heating is considered healthier heating.
- Light is a problem that haunts all typical Mallorcan rural houses, since in the past small windows and doors served as thermal insulation, since they did not allow the house to heat up in the summer and cool down in the winter. Nowadays this thermal insulation is no longer necessary, since quality materials offer you a very efficient thermal insulation. Therefore, it is recommended to install double-glazed doors and windows as they offer us a lot of light and very efficient thermal and acoustic insulation, and also the large glass partitions provide a lot of natural light to the home.
- With technological advancement, every time technological elements are implemented in the home, be it for heating, cleaning or simply turning on the light in your room with your voice … These are details that should already be present in all luxury homes throughout the year 2020 to be attractive to the buyer.
- Built-in wardrobe
- Regarding solar panels, it is valued as an additional electrical power source to the current electrical network. They give us the opportunity to store and use our own “green” energy, since itcomes from an inexhaustible resource such as the sun, which should be a way forward to preserve our planet. In addition, as society advances towards a sustainable future, more and more buyers are looking for ecologically sustainable properties. The solar panels for sanitary water can be used to heat sanitary water, or feed the underfloor heating. Specifically, the installation of solar panels, as an extra source of electricity or as a sanitary water heater, greatly increases the value of the property.
We will continue with two key areas in terms of pricing, which are the kitchen and the bathroom.
- The kitchen is usually one of the most used areas in all homes, so it is the part of the house that deteriorates the most. For this reason, a reform or renovation of the kitchen, such as changing the furniture, tiles, sink or appliances, makes the house much more visually attractive, and more importantly, more efficient both energy (modern appliances greatly reduce water and electricity consumption).
- As for the bathrooms, normally the limiting factor is the space and we try to make the most of it. To increase the use of available space, the trend is to change the bathtub for a shower tray, something that turns out to be practically as useful, but with a very low water consumption, and offering us more space in our bathroom. On the other hand, the tiling, tiles, tiles, sinks and faucets can be changed, something that although does not improve efficiency much, makes the bathroom much more attractive to the buyer’s eye and considerably increases the value of the property.
Regarding the exterior reforms, the reforms that we carry out
in our garden, I would like to highlight the occasional improvement:Obviously, the first point could not be other than the desired pool, where you can cool off on a hot summer day. Of course it is an important investment, which recovers by far when it comes to selling the home and getting a return of around 40% of the value of the
investment. But it is not necessary to sell the property to recover the investment in the pool, vacation or long-term rental may be an optimal option. The difference between two identical properties, only that one has a swimming pool and the other does not, the difference in the monthly price can vary between 200 and 400 euros.
- Security is a very important aspect to take into account, especially in luxury real estate, which is why the separation of your space and that of others is taken into account. For this reason a reform of the walls, for example a dry stone wall to delimit the property, increases the value of the property despite being a rather expensive reform. The installation of an alarm system provides extra security when purchasing a property. Privacy is one of the characteristics most requested by buyers of luxury properties, so that the territory is usually visually isolated either with a fence, a conventional wall or a natural one.
- The grass meadow is one of the most valued attractions abroad. Planting the lawn is a long and expensive task, but it does not end there, because it requires weeks of maintenance and daily watering (depending on the area), which creates extra costs.
- Decorative or fruit plants can add extra value to the property, because it takes time and work for the growth of plants. Before selling a property, it is recommended to check and repair the roof. On the other hand, we have to review the most humid areas of the property, and eradicate it and fix the areas affected by humidity. As humidity is detrimental to human health, it is very important that the problem be tackled before each sale.
- Another point to value is the availability of the Tourist License. By having the ETV, the property can be sold as an investment project, so the value of the property in this case can rise around 20-30%. The own drinking water well is another point to consider regarding the valuation of the property. The existence of terraces, to hang out with friends, for creative mornings with a cup of coffee, or to have a BBQ offers extra comfort, for which buyers are willing to pay.