Home renovation can be a key strategy for those looking to invest in real estate in Budapest. A well-executed renovation not only increases the market value of the property but also offers the opportunity to negotiate higher rents and a faster sale. Wandering Investor also highlights the potential of renovation, especially for city center properties where premium quality can provide particularly high returns. In this article, we take a detailed look at the different aspects of home renovation and provide tips on how to maximize the return on investment.
Renovation Strategies in the Budapest Real Estate Market
- Kitchen and Bathroom Renovation: the kitchen and bathroom are the most important rooms to work on in a home renovation. These areas often have a significant impact on the attractiveness and value of the property. According to an analysis by Wandering Investor, a modern, well-equipped kitchen and bathroom can increase the value of an apartment by up to 10-15% in the Budapest market.
- Energy Efficiency Improvements: energy-efficient solutions such as insulation, replacing windows, and upgrading heating systems are becoming increasingly popular with tenants. Not only do they reduce overheads, but they also meet the need for environmental awareness, which is particularly important for younger tenants. Green improvements are also attractive to long-term landlords as they lead to more stable tenants who are willing to pay higher rents.
- Layout Optimisation: to increase the value of a home, it is often worth considering the layout. Creating open-plan kitchens, improving the layout of rooms, or adding extra bathrooms can all be improvements that can significantly increase the attractiveness of an apartment. In Wandering Investor’s experience, a practical floor plan can have a significant impact on tenants’ choice and therefore the market value of the property.
Premium Category and Short-Term Leasing
Renovating premium apartments can be particularly profitable in the inner districts, where demand for short-term rentals is still strong. Airbnb and other similar platforms provide an opportunity for investors to take advantage of the demand for short-term accommodation from tourists, especially in the premium category. Modern facilities, quality materials, and special design elements can help to make an apartment stand out and rent it out at a higher price.
Increasing Long-Term Value with Green Solutions
More and more investors are turning their attention to green and sustainable solutions that not only attract tenants but also create significant long-term value. Improvements such as the installation of solar panels, rainwater harvesting systems or energy-efficient lighting can help reduce overheads and increase the environmental value of the property. Wandering Investor’s analysis of green investment also confirms that such improvements will play an increasingly important role in the future real estate market.
Financing renovation and cost efficiency
The success of renovations depends to a large extent on cost efficiency. It is important to plan and develop a realistic budget that takes into account potential unexpected costs. For many investors, using a bank loan or other financial facilities can help finance the renovation. The advice offered by Wandering Investor is to spend on quality materials and well-established professionals when renovating, as these will ensure a long-term return on investment.
Summary
Renovating apartments in Budapest in 2024 can still be an excellent way for investors to increase the value of their properties and achieve higher rents. Whether it’s premium renovation, energy efficiency improvements, or floor plan changes, with the right strategy and quality work, significant returns can be achieved. Wandering Investor’s analysis and advice can help investors make the most of their real estate investments in Budapest.
To find out more about the opportunities in residential renovation and how to maximize your investment in Budapest, follow the QFV website where our experts will help you develop the best strategy.
