The price of a flat that is not in optimal condition and needs refurbishment is, on on average, 25% lower than the price of a similar flat in good condition, according to a study published by idealista, the main real estate marketplace in Spain, Italy and Portugal. The cost per square meter of a flat in good condition is 1,705 euros, while in the case of flats to be refurbished this amount drops to 1,279 euros/m2.
By capital city, the biggest difference between flats in good condition and those in need of refurbishment is found in Ourense, where those in need of a major work are 46%, followed by Jaén (45%), Cuenca (44%), León (44%), Pontevedra (43%), Palencia (43%), Las Palmas de Gran Canaria (40%) and Castellón (40%).
On the opposite side is the city of San Sebastián, the only one in which the prices of homes to renovate are higher (3%) than those in good condition, probably motivated by the better location of many old flats in the centre of the capital of Gipuzkoa. This is followed by flats in Huelva, where the houses to refurbish are 'only' 6% cheaper, followed by Pamplona (-7%), Murcia (-9%) and then Barcelona and Madrid (with -12% in both cases).
Difference in the price of houses for sale according to their state of conservation
The ranking of the cities with the most expensive homes to renovate shows no great surprises: San Sebastián (5,080 euros/m2), Barcelona (3,762 euros/m2), Madrid (3,644 euros/m2), Palma (2,852 euros/m2), Bilbao (2,678 euros/m2) and Pamplona (2,333 euros/m2). Jaén, on the other hand, has the cheapest price per meter squared for refurbishment, with 721 euros/m2. It is followed by Lleida (775 euros/m2), Cuenca (806 euros/m2) and Castellón (810 euros/m2).
San Sebastián, meanwhile, is also the city with the most expensive flats in good condition (4,930 euros/m2), followed by Barcelona (4,255 euros/m2), Madrid (4,155 euros/m2) and Palma (3,631 euros/m2). Huelva, on the other hand, is the cheapest market to buy a flat without refurbishment (1,164 euros/m2).
Take advantage of savings to invest in refurbishments
On a national level, the savings that buying a home to be refurbished would generate, in the case of opting for a typical 90-meter flat, would reach up to 38,395 euros, which could be used to pay for the refurbishment.
Given the price differences between one capital city and another, the amount that could be spent on refurbishment varies. The highest amount is in Las Palmas de Gran Canaria (91,576 euros), followed by Vitoria (89,339 euros), Pontevedra (75,398 euros), Ourense (72,449 euros) and Palma (70,071 euros), the only ones above 70,000 euros.
The opposite extreme is occupied by San Sebastián, where buying to renovate would not entail any savings, followed by Huelva (6,273 euros), Murcia (11,251 euros), Pamplona (15,378 euros), Ceuta (20,481 euros) and Alicante (22,772 euros).
Among the large cities, Seville is the market in which the least savings would be generated (43,455 euros). It is followed by Barcelona (44,317 euros), Zaragoza (44,592 euros), Madrid (45,984 euros) and Valencia (48,322 euros). Above 50,000 euros are Valladolid (50,659 euros), Bilbao (53,382 euros) and Malaga (61,282 euros).