Renovation of housing increases its cost by 35%

Thanks to the development of housing reconstruction funds and urban renovation in 2022, a new type of player appeared on the real estate market — reconstruction agencies.

"Reconstruction agencies are responsible for managing the reconstruction process. Organizations work on the principle of "one window", so both individuals and large companies can do business with one contractor from start to finish," explains Eva Cuesta, Managing Director of Acerta.

She notes: "Despite subsidizing the activities of agencies by funds, clients will have to finance part of the work from their own funds."

The real estate consulting and valuation company Sociedad de Tasación conducted a study of renovated real estate and concluded that the value of such properties increased by 35%. However, their energy efficiency and overall resource efficiency have improved.

Reconstructed housing can be put on a par with new buildings.

According to the "Royal Decree on Assistance Programs for Housing Renovation", real estate reconstruction agents can be individuals or legal entities, public and private organizations. All those who can promote, monitor, and manage renovation processes and meet the criteria to receive state funding to carry out their activities.

Experts say that the Royal Decree is a complex document and has vaguer legal concepts. It will require further work to define the framework within which reconstruction agencies will operate in the market.

Uncertainty in the law can lead to increased speculation in the market and the emergence of many organizations not qualified for renovations.

Some companies are introducing property reconstruction agencies into their structures. For example, the developer Vía Ágora has created a Rehabilitation company. The powers of the latter included responsibilities such as organizing housing renovations processes, assisting in the management of homeowners' associations, and carrying out real estate revaluations.

Rehabiliterm also deals with the issues of sustainable urban development and improving their environmental friendliness.