Renovate or Buy Move-In Ready: How Much Does an Apartment “With Potential” Really Cost?
An apartment in need of complete renovation can often look like an attractive opportunity at first glance. The initial purchase price may be lower, the space can be redesigned according to your own preferences, and a high-quality renovation can significantly increase the value of the property. However, the experience of Eurovilla’s agents shows that buyers often underestimate the true cost, duration and complexity of a renovation project.
The phrase “an apartment with potential” can therefore describe two very different situations: an opportunity to create a high-quality home or a project that ends up exceeding the planned budget. The difference usually comes down to how accurately the buyer assessed the condition of the property before purchasing it.
A lower price is not the same as a better deal
One of the most common mistakes is comparing purchase prices alone. An apartment requiring renovation may be €30,000 or €50,000 cheaper than a fully renovated property in a similar location, but that difference does not necessarily represent a genuine saving.
The total budget should include construction work, electrical and plumbing installations, windows and doors, flooring, sanitary fittings, the kitchen, lighting, furniture and professional supervision. There may also be costs associated with waste removal, protection of communal areas, transportation of materials and temporary accommodation while the work is being carried out.
Buyers often calculate the cost of everything they already know they want to change, but forget about the things they may only discover once the renovation begins.
Installations matter more than beautiful surfaces
Old parquet flooring, an outdated kitchen or dated tiles are easy to notice. A far greater risk may be hidden inside the walls: the electrical and plumbing systems.
In older apartments, it may be necessary to replace the entire electrical system, distribution board, water pipes, drainage or heating system. These works often require walls and floors to be opened, followed by additional construction, plastering, painting and flooring work.
If the installations are ignored simply to reduce costs, the buyer may end up with a visually attractive apartment that still has serious problems hidden beneath its new surfaces. This can later result in faults, water leaks and the need to reopen rooms that have already been completely finished.
When viewing an apartment, it is therefore not enough to decide whether you like the space. You also need to understand what is behind the walls and when the property’s key systems were last replaced or renovated.
Removing walls is not always straightforward
Older apartments often have separate kitchens, long corridors and room layouts that no longer suit modern lifestyles. Buyers may therefore assume that removing a few walls will easily create an open-plan living area.
Before making that decision, it is important to establish whether the wall is load-bearing or non-load-bearing, and whether important installations run through it. Changing the floor plan may require input from a structural engineer, architect or approval from the relevant authorities, depending on the scope of the work.
Another potential issue is previous alterations that were never properly reflected in the documentation. An enclosed loggia, incorporated hallway or modified room layout may appear useful, but discrepancies between the actual condition and official records can later make a sale, mortgage financing or registration of the property more complicated.
The condition of the building matters just as much as the apartment
A buyer can completely renovate the interior of an apartment, but cannot independently solve problems affecting the entire building.
Before purchasing, it is worth checking the condition of the roof, façade, lift, vertical plumbing and drainage systems, staircase and communal areas. The level of the building reserve fund, any planned works, and whether the co-owners are repaying existing debts or loans are also important.
New parquet flooring and a beautiful bathroom will not make an apartment comfortable if the roof leaks, the façade is deteriorating or the building’s shared installations are approaching the end of their useful life.
This is particularly important in buildings located within historic city centres, where renovating façades, roofs or structural elements can be both technically and administratively demanding. Protected buildings may also be subject to additional rules that restrict the choice of windows, materials and external alterations.
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Renovation almost always takes longer than expected
Timelines are another area where initial expectations are often unrealistic. Delayed materials, unavailable contractors, last-minute changes and unexpected problems can extend a project by several weeks or even months.
Renovation work also depends on the correct sequence of different trades. A delay by the electrician or plumber can prevent walls from being closed, floors from being installed and the kitchen from being fitted. One incorrect measurement can delay custom-made furniture for weeks.
A buyer who is simultaneously paying a mortgage, rent and renovation costs can therefore find themselves under significantly greater financial pressure than originally expected.
It is sensible to leave some flexibility in both the budget and the schedule. A renovation with absolutely no unexpected costs is more the exception than the rule.
When is an apartment requiring renovation a good opportunity?
This type of purchase makes the most sense when the property is in a strong location, has a good basic floor plan, sufficient natural light and clear documentation. The purchase price should also leave enough room in the budget for a high-quality renovation.
An apartment requiring refurbishment can be particularly attractive to buyers who have a clear vision, reliable contractors and enough time to manage the project. The major advantage is the ability to choose almost every detail yourself, from the installations and floor plan to the materials and furniture.
On the other hand, a fully renovated apartment may be the better option for someone who wants to move in quickly, has little experience managing building work or does not want to risk exceeding the planned budget. A higher initial purchase price can sometimes be justified by greater predictability and considerably less stress.
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The decision should be based on the total cost
Before making an offer on an apartment that requires renovation, it is useful to prepare at least a preliminary renovation budget with the help of an architect, interior designer or contractor. The estimate should include essential works, desired improvements and a financial reserve for issues that may only become visible once renovation begins.
Only when all of these costs are added to the purchase price, together with a realistic completion timeline, is it possible to make a meaningful comparison between an apartment requiring renovation and a move-in-ready property.
Eurovilla helps clients assess a property’s location, condition, documentation and market potential before purchase. Contact us to help determine whether an apartment “with potential” is genuinely a good opportunity or a project that may require considerably more investment than it first appears.