Renovating a home isn't just a matter of aesthetics or comfort. In many cases, it's an investment with a real, measurable return. And if you're thinking about doing it in 2025, it's worth taking a good look at the numbers. How much can a home appreciate in value after a renovation? What ROI can you expect in 2025? Let's take a closer look, especially if you're in areas like Mallorca, where real estate demand continues to rise.
How does a comprehensive renovation impact home value?
Beyond replacing floors or painting walls, a comprehensive renovation transforms a home inside and out. It improves its layout, makes it more energy-efficient, more comfortable... and, yes, more attractive to buyers or tenants.
In cities with high demand—such as Palma de Mallorca, but also Madrid, Valencia, and San Sebastián—a renovated home can increase its value by up to 40%, depending on its initial condition, finishes, and, of course, its location. On average, the increase ranges from 20% to 30%, a significant figure when considering ROI in 2025.
How much does it cost to renovate in 2025?
Prices vary greatly depending on the type of renovation and where you live. But to give you an idea, these are the average prices per square meter this year:
Standard renovations: €650 – €950/m²
Medium-high range: €1,000 – €1,300/m²
Premium renovations: from €1,500/m²
For example, completely renovating a 90 m² apartment can cost between €58,500 and €117,000, depending on the level of detail. This is no small feat: knowing the costs is key to knowing whether the investment is worth it.
Understanding ROI in 2025: What is it and how is it calculated?
ROI stands for Return on Investment, or how much you earn for every euro you invest. It's a fairly simple formula:
ROI = ((Value after renovation − Current value − Cost of renovation) / Cost of renovation) × 100
A practical example to put numbers to it
Imagine your house is currently worth €200,000. You decide to renovate it for €60,000, and after the renovation, you could sell it for €270,000.
The calculation would be this:
ROI = ((270,000 − 200,000 − 60,000) / 60,000) × 100 = 16.7 %
Not bad, huh? Especially if you plan to rent it out in the meantime or if you're planning to sell in a booming market like Mallorca's.
What influences the ROI of a renovation in 2025?
There are several factors that can make the difference between a profitable renovation and one that isn't so profitable:
1. Location
Renovating in a saturated area is not the same as renovating in a city with high demand and low supply, like Palma. There, a well-done renovation can make a difference of up to 40% compared to similar unrenovated properties.
2. Energy efficiency
It's not a fad, it's a necessity. Improvements such as double-glazed windows, good insulation, or efficient air conditioning systems not only reduce bills, they also add value. In colder areas, these improvements can increase the selling price by between 4% and 8%.
3. Modern distribution
Removing partition walls, opening up the kitchen to the living room, making better use of natural light... All of this changes the experience of living in a home. And buyers notice.
4. Quality of materials
Everything is clearly visible here. Durable finishes and well-chosen materials not only enhance the look, but also provide peace of mind: less maintenance, fewer surprises.
When is it worth doing a renovation?
There is no single answer, but there are two common scenarios where it usually pays off:
If you want to sell: a good renovation can help you close the deal faster and at a better price. Of course, you have to carefully crunch the numbers and surround yourself with professionals who know where to spend and where not.
If you want to rent: a renovated home can raise its rent by up to 25%, and also reduce the time it's vacant. That counts too.
Tools for making beads
Nowadays, websites like Idealista and Fotocasa allow you to estimate the value of your home based on the area, condition, and type of renovation. There are also online ROI calculators: you enter the data and they give you an initial idea of whether the move could work out.
Which reforms provide the greatest return?
Not all projects have the same impact. Some of the most profitable projects in 2025 are:
Kitchen and bathroom renovations (up to 75% of the cost can be refunded)
Window replacement and insulation installation
Replacement of floors and electrical or plumbing installations
Lighting and general painting improvements
These are renovations that combine aesthetics and functionality, and that's exactly what most buyers are looking for.
Tecnic Project: renovation specialists in Mallorca
If you are thinking about renovate your apartment in MallorcaYou'll already know this isn't just any plaza. Here, quality, design, and attention to detail make the difference. At Tecnic Project, we've been working on comprehensive renovations on the island for years, both in private homes and commercial premises.
Our approach is simple: we plan every phase with you, choose materials wisely, and take care of the execution until the end. Because a renovation isn't just a project: it's an investment. And our goal is to help you make that investment meaningful and deliver real results, with a good ROI by 2025.
Do you have a project in mind? Write to us and we'll talk about it. No rush, no commitment. Because a thoughtful renovation always starts with a good conversation.
