FEATURE
Housing Reform Aid Could Increase Rental Value
According to a study by Andimac, financial assistance for housing renovations could increase rental values while encouraging growth in the construction sector focused on rehabilitation work.
The study estimates that 1.6 million homes—around 6% of Spain’s housing stock—could be renovated in a year with the support of aid for work inside residential buildings. It also indicates that a renovated apartment could generate up to 30% more rental income.
Renovation assistance could therefore stimulate the rental market, which is already being shaped by tourism demand and young people’s preference for renting.
Rehabilitation is increasingly important because Spain’s housing stock continues to age. The study states that 80% of homes are more than 18 years old.
This activity could also support the construction sector specializing in home improvements. Andimac estimated that the value of construction materials used could rise by 9%, reaching approximately €22.35 billion.
Could the housing rehabilitation deduction be restored?
Andimac argues that deductions for rental-property rehabilitation should be restored at both national and regional levels. According to its estimates, this could benefit approximately 200,000 homes.
If Spain’s autonomous communities make use of assistance provided through the State Housing Plan, households could gain access to funding potentially benefiting more than half of the country’s homes.
Renovation spending by autonomous community
Andimac’s data suggests that households in the Balearic Islands, Madrid, and Extremadura would spend the most on renovations on average. Cantabria and Asturias would record the lowest average expenditure.