The parquet costs 8,000 euros, the installation of a wooden beam exceeds 7,000 and the chimney pipe amounts to 1,500 euros. These are just some of the items that María Piñeiro bitterly complains about when analyzing the budget she has just received for renovating and expanding a family house by adding 45 meters in the municipality of Gondomar, in Pontevedra. «We asked for four quotes from companies in the area three months ago and we have only received one. The others have told us that they are overwhelmed or their execution start dates are in 2027 because they have too much contracted work,» he says. The budget exceeds 3,000 euros per square meter “for a space that has no partitions, no bathroom, nor great technical complexity,” although it is a very efficient house (passive house). “After two years of processing permits and with a closed budget in hand, we asked ourselves: is it really worth it?”, laments Piñeiro. To understand why the budgets for any renovation have become more expensive and the deadlines to begin construction are extended in time, we have to go back five years. The pandemic completely changed citizens’ relationship with their homes. The request for reforms to meet the new needs revealed by confinement skyrocketed. «There was brutal demand, waiting lists and overwhelmed suppliers. The pandemic was the biggest turning point I have seen in 25 years of profession,» says César Martín, founder and director of ArQuality, an architecture studio specialized in comprehensive renovations and rehabilitation of homes in the Community of Madrid. It also impacted prices, especially after the start, in 2022, of the war in Ukraine. “The entire activity became more expensive as a result of the very strong increase in energy prices,” says Álvaro Vega, regional director of PlanRadar in Spain, France and Italy, who estimates the increase in material prices between 10% and 40% since 2020. The construction cost index of the Ministry of Transport, Mobility and Urban Agenda has registered an increase of 29% between 2020 and 2024. If, in addition, one takes into account labor, the figure is 23%. Steel, aluminum and wood have risen more than 25% in less than two years. “Cement, concrete, glass, radiators, boilers and sanitary appliances have become more expensive by around 40% since 2020,” says Germán Pérez, president of UVE Valuations, who recalls that “renovation prices are more expensive than their equivalents for new construction as they are smaller works.” Carpentry, electrical and coating work has been the most affected, as they are those that combine the most expensive materials and more specialized labor: in carpentry, all custom-made pieces (closet fronts, windows…); In electricity, in addition to copper, greater electrification influences, and in coverings, porcelain and ceramic tiles rose due to the price of gas. Back to the present, it turns out that all these costs have not returned to the starting point. “The market has readjusted upwards and it seems permanently,” says Martín, who affirms that, now that the prices of materials have stabilized, it is labor that makes renovation budgets more expensive. “There is no room to adjust anything, it’s that simple, there is more demand than hands,” he says. A carpenter charges between 25 and 35 euros per hour for labor, up to 60 euros for doors and cabinets and up to 150 if they are lacquered. Albert Jané, technical director of the company Aqui tu Reforma, quantifies that “labor has become more expensive by up to 20%, especially in items that require qualified personnel.” Trades such as masonry, plasterboard, plumbing and electricity require specialized and trained professionals to carry out what in construction jargon is known as “fine work,” he explains. This is the main reason for delays in the delivery of estimates and in the beginning and completion of works, something that has a direct impact on prices. “Execution times have been extended by more than 20% in the case of comprehensive reforms, from approximately five to six months,” says Carlos Candanedo, CEO of Gilmar Soluciones Constructivas. “We experience it every day: there are projects that are delayed for weeks just because a specific installer is missing,” says Martín. And to add more fuel to the fire, demand remains high, although “the pace of growth compared to the post-pandemic boom has moderated,” says the technical director of Aqui tu Reforma. A demand that opts for comprehensive remodeling. «The increase in the purchase price of housing and the lack of supply have caused many people to decide to completely renovate the house they live in. The client is looking for more comfort and more energy efficiency,» says Candanedo. At Gilmar Soluciones Constructivas, seven out of every ten jobs are comprehensive renovations, compared to 30% that are small improvements (bathrooms, kitchens, exterior carpentry…). Those who manage to buy a home, whether for their own use or to rent out, also resort to improvements. “A renovated house can increase the sale price by 25%,” says Candanedo.
The invoice
The budget depends on a multitude of factors. The location, the size of the house, the previous condition, whether there is an elevator and parking, whether special licenses are required are important… A reference to know the costs is Madrid, which, along with Barcelona, are the most expensive markets: between 600 and 1,200 euros per square meter, depending on the qualities. A basic quality renovation can be between 450 and 600 euros per square meter, a medium quality one ranges between 700 and 900, and a premium one can exceed 1,000 euros, according to ArQuality, whose market analysis is based on specialized sources, companies in the sector, comparison platforms and official organizations. “A 100 square meter home costs between 45,000 and 90,000 euros, depending on quality,” says Martín. The objective is to adapt the home to the lifestyle of its owner and not the other way around. “They request to change the distribution, for example, they ask for kitchens open to the living room, as well as the change of air conditioning systems, especially for aerothermal heating with underfloor heating,” says Candanedo. “Another item that has also clearly increased is heating or air conditioning, due to a brutal modernization resulting from the need to reduce energy expenditure as much as possible,” says Martín. The client wants open spaces, bright areas, energy efficiency and comfort for teleworking. According to the CEO of ArQuality, «renovations are no longer done just for aesthetics, but for vital strategy. Therefore, most of the work today is comprehensive, both reconfiguring spaces and updating all the facilities with average finishes.»
