Since March 2020, when the state of emergency had the population in lockdown for weeks, the demand for the purchase of villas has skyrocketed. Property search engine Lacooop reports that in the first semester of 2021 alone, this demand grew 150% in comparison to the same period of the previous year, a trend that will be maintained throughout 2021 according to data from the Spanish Association of Property, Movable and Mercantile Property Registrars.
In our modern society, the price of any good, (and a house is a real estate good) is greatly influenced by supply and demand, and the pandemic has considerably boosted the increase in demand for single-family homes.
Whether it is a passing trend or an established one, it is true that in the process of designing and building a villa, certain decisions can contribute to the revaluation of this type of property, especially when one decides to become a developer.
How much do I invest in the land?
The location and the land are important in the total value of a real estate investment. Due to the current urban planning legislation, demand has grown much more than urban land supply, so we can say that the land to build is expensive, in comparison with other times. In our blog we have recently published a post about the most coveted plots of land on the Costa Blanca (see post).
When considering the revaluation of your future home, you should bear in mind that the value of the land should be between 20% and 40% of the total investment. In other words, if you have one million euros to invest, in order for the house to properly increase in value, the price of the land should be between 200,000€ and 400,000€.
If you are seeking an optimal revaluation of your investment, it is just as bad to buy an expensive piece of land and invest little in construction as it is to build a mansion on land that is undervalued. In either the short or the long term, this situation will determine the final cost of your property.
Which construction components make my house more valuable?
The high-quality materials, high value-added rooms, large spaces, huge windows all contribute to increasing the value of the property as time goes by. A tiled floor is not the same as a wooden floor, an enclosure that insulates and gives light to the property, having an office, multi-purpose room, covered garage, etc.
However, what can undoubtedly provide a significant increase in value is the existence of a swimming pool. Some developers have estimated this revaluation at between 5 and 20% (the swimming pool would have to be checked of course).
This is a curious fact, especially when, for decades, swimming pools have been widespread, and being the dream of many, today we are witnessing them become the day-to-day reality of almost every single-family home. Without a shadow of a doubt, a house with a swimming pool sells better and more quickly than one with similar specifications but which does not provide that space of comfort and recreation for the whole family.
Does energy efficiency make a difference?
In Spain, day by day we are reaching higher levels of environmental awareness, so it is not at all surprising to say that, according to eleconomista.es, around 60% of buyers would be willing to pay 13.4% more for a sustainable and efficient house.
In recent months, we are witnessing an increase in investments related to the energy efficiency of homes. To achieve this efficiency, homes must be built with sustainable materials, which improves the insulation of the houses, and in which the consumption of renewable energies and progress towards energy self-sufficiency also plays a greater role.
A sustainable home is more expensive, but at the same time it is more cost effective, not only because of the savings in energy consumption but also because it will be more valued by future buyers.
At personalHOME we work with all types of clients with a wide variety of needs and requirements. From families looking to build the house of their dreams to investors looking to make their investment worthwhile so that they can earn money. Our experience and professional knowledge allow us to offer the project they are looking for according to these same characteristics. And you, what are you looking for?
