Faced with numerous vacant and aging residences across Portugal, revitalizing existing structures presents a compelling response to housing scarcity. This approach also significantly elevates property worth.
Idealista’s 2024 housing market analysis reveals that a comprehensive remodel can potentially raise a property’s selling price by as much as 30%, making it a highly profitable strategy, especially in popular areas like the Algarve.
The recent study emphasizes that thoroughly renovating a run-down property in Portugal can amplify its value by over 25%. Notably, the greatest gains are observed in apartments with one bedroom (26.6%) and two bedrooms (29.9%), while residences with three bedrooms achieve a 25% increase, and studios see a 23.4% rise. Even larger dwellings, featuring four or more bedrooms, still experience an average value surge of 20%.
The Algarve, alongside Lisbon and Porto, excels in post-renovation value enhancement, with two-bedroom apartments appreciating by 30%. To illustrate, a neglected two-bedroom apartment or townhouse initially valued at €200,000 could command approximately €260,000 after renovation in Faro or Lisbon.
However, renovation extends beyond mere aesthetics; it also embodies sustainability principles. In 2024, more than 4,400 residential renovations in Portugal obtained energy performance certifications, with over 60% securing the highest ratings (A or A+), further boosting their market desirability.
Acquiring an older property in the Algarve and updating it presents an outstanding avenue for entering or expanding within the real estate sector. The synergy of robust demand, a vibrant housing landscape, and considerable post-renovation value renders it an appealing choice for both personal occupancy and financial gain.
Given the rising demand for updated dwellings, now represents the optimal moment to participate in the Algarve’s revitalization. Engaging with a local real estate professional, such as Algarve Home Sales, ensures access to premier opportunities, expert counsel on regulations, and a seamless renovation journey. Reach out to us today.
