The municipal authorities of the Spanish regions are always in charge of determining the requirements for the interior design of living dwellings. As a result, the requirements and costs for converting non-residential space into residential space vary depending on the region of the country. For the quickest and most profitable development of a residential facility, this justifies the search for specific communities, provinces, and comarcas where the requirements are the least strict and the costs are the lowest.
The market value of residential real estate should also be considered concurrently. Gipuzkoa is the third most expensive region in Spain to purchase a home, following Madrid (3,235 euros per sq.m.) and the Balearic Islands (3,507 euros per square metre). Gipuzkoa’s pre-owned house cost 3,234 euros per square metre in July 2022, an almost 3.7% increase from the previous month.
A good source of information on the Spanish real estate market are the monthly reports prepared by the Pisos.com portal. According to their most recent data, the province of Gipuzkoa has become the autonomous community in the Basque Country's most expensive territory (note. the Basque Country).
Many people now find it nearly impossible to purchase real estate in this area due to the current situation. Increasing supply is always a successful way to bring down prices, which the local market demands. Converting non-residential space into new residential real estate is one of the best ways to reduce the supply shortage on the market.
The majority of the time, a residential facility's requirements have an impact on things like accessibility, free space, location, and more. First and foremost, converted premises should be situated inside city borders and offer the bare minimum of living quarters.
The property must also meet technical accessibility requirements, standards for safe habitation, minimum size requirements for the entire premises and each room, etc. As stated, the local municipal council's decisions determine all of this. For example, in Donostia (San Sebastián), the capital of the province of Gipuzkoa, the living space after conversion must be at least 35 square metres and the height from the floor to the ceiling must be at least 2.5 metres.
The total cost of the entire process of renovating the residence, from research to direct work, will also depend on the regulations of a specific municipal council and a settlement. It will change to include the architect’s fee, which is often set as a percentage of the overall cost of the project. Interest is also calculated on taxes and fees. Most frequently, we are discussing 4–6% of the project's overall cost.
It is important to note that many Spanish market experts predict adjustments in the costs of work and property market prices as a result of the European Central Bank’s (ECB) most recent increase of the key lending interest rate by another 0.5%. However, according to Ferran Font, director of research at Pisos.com: “There will be no deep correction, but we should expect a cooling in the market’s growth rates. But regardless of where the market as a whole goes, there will be differences and fluctuations when we get down to the level of local markets. As a result, markets that are consolidated, have deficits, or are immensely popular are not affected by the market cooling.”