Home renovation is a fundamental step to improve functionality, aesthetics, comfort, and more. Renovation is an essential element for increasing a property’s real estate value, whether for sale or rental. But how much value does a house gain after renovation? Which improvements increase its real estate value the most? Let’s discover, with data in hand, why renovating a house before selling or renting it is advantageous.
What Determines a House’s Value
The elements that determine a house’s real and market value are various and quite different. One must evaluate the building’s location, its structural and systems conditions, safety standards, its appurtenances, and connections with the surrounding urban fabric. Italy is a country with rich real estate heritage, often comprising properties of significant historical and architectural value, located in city centers throughout the country. Renovating and preserving this vast heritage is a priority for the country, so much so that in recent years, governments have proposed various tax incentives for private home renovations, such as the 50% Renovation Bonus.
How much Value Does a House Gain after Renovation?
According to estimates published by Il Sole24Ore, based on data collected from Immobiliare.it and Prontopro.it, on average, a renovated house in a major Italian city sees an increase in value of up to +19%, 12% net considering the expenses incurred for the work. The value increases even more significantly when it comes to rental properties. Renovation work can lead to an increase in an apartment’s rental rate of +22%. In particular, the most significant increases are found in cities like Rome, Milan, Turin, Florence, Naples, Venice, Bologna, and Brescia.
Improvements that Increase a House’s Value
Which Areas to Renovate to Increase Property Value
Among the interventions that most significantly influence the increase in an apartment’s real estate value, we can certainly include bathroom and kitchen renovation. Renovating living rooms and bedrooms obviously adds value, but renovating bathrooms and kitchens often makes the difference. In particular, the most significant interventions are those concerning electrical system renovation, plumbing, and heating.
Focus on Energy Efficiency Upgrades
Energy retrofitting is a factor that significantly increases the value of a property. Today’s property buyers are very attentive to this aspect. Indeed, a building with a high energy rating allows for truly significant savings. Furthermore, in this context, those who choose to renovate their home by focusing on energy retrofitting can access substantial tax bonuses.
Home Renovation: Small Improvements that Make a Difference
To increase an apartment’s real estate value for sale or rental, you can make small improvements with contained costs but great results. Here are some:
Optimize Spaces
A careful redistribution of domestic spaces can significantly increase a property’s value. With the support of an architect, you can rethink an apartment’s rooms to obtain new spaces: a new bathroom, a guest room, a study, or a storage room. In many cases, even adding dividers and sliding doors to separate environments can really make the difference.
Focus on Proper Lighting
Light is a fundamental element in our perception of spaces. By carefully studying a house’s lighting, you can radically change its appearance. In this regard, it’s crucial to consider a building’s natural light sources and how to best utilize them. Artificial lighting should be carefully planned, enhancing the space and choosing the right warmth for each environment. Small expenses and minor interventions can bring tremendous results.
Increase Security
The need to secure private homes is growing, and buyers are becoming increasingly demanding in this regard. In Italy, only one in three doors is reinforced, and only one in seven has a video intercom. Even fewer homes have an alarm system, estimated at one in ten. Investing in door and window security is important, as is installing anti-theft systems equipped with cameras and remote video surveillance.
Would you like to learn more? Are you looking to renovate a second home to sell or rent it out? Take advantage of the Renovation Financing offered by Domidea. Contact us today; our experts will guide you through the most suitable solutions and all the tax bonuses available for a more cost-effective renovation.
