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Before and after: how good architecture adds value to a property

Architecture is not merely an aesthetic matter. In the Málaga property market — where prices per square metre in prime areas have risen 40% in the last five years — a well-conceived architectural intervention can be the difference between selling at market price and selling above it.

The ROI of architecture: what we are talking about

When we talk about the return on investment in architecture, there are two types of value that overlap: sale value (how much more the property is worth on the market) and use value (how much better it is to live in, or how much more it can be rented for). In many cases they are inseparable: a better-designed space is also more profitable as a short-term rental and easier to sell.

Studies of the Spanish property market, and of Málaga in particular, consistently show that properties renovated with a certified architect and an updated energy efficiency certificate sell between 15% and 35% above the price of equivalent unrenovated properties, and in significantly shorter timescales. The buyer's perception is simple: a thoughtfully renovated home is one that requires no immediate time or money investment.

Case 1: The layout renovation in an urban flat

The most common case in the Málaga city centre market: a 1970s or 1980s flat with a compartmentalised layout that turns its back on natural light, a closed kitchen isolated from the living room, a corridor that wastes useful floor area, and bathrooms without direct ventilation.

A layout renovation — removing non-structural internal partitions, opening the kitchen into the living-dining room, enlarging bathrooms at the expense of some storage or corridor — does not increase the flat's floor area, but does radically improve its spatial quality. The sense of spaciousness, the entry of natural light throughout the home, and the flow between kitchen and living room are the three factors buyers value most in today's market.

In terms of investment: a layout renovation in a 90 m² flat in central Málaga can cost between €40,000 and €65,000 (including the project, new kitchen, bathrooms and mid-to-high-quality finishes). The increase in value in the historic centre or Soho area can be €80,000 to €120,000 above the starting price. It is one of the best-return operations in the local property market.

Case 2: Façade rehabilitation in a multi-family building

The El Museo Apartamentos project in central Málaga is a direct example of this phenomenon. A historic building with a deteriorated façade — elements in poor condition and no visual coherence — is transformed through a comprehensive façade rehabilitation: cleaning the original stonework, reinstating ornamental elements, updating window openings with joinery that respects the historic language, and new accent exterior lighting.

The effect on the value of the building's units is immediate and documentable. The façade is the buyer's or tenant's first impression. A building with a rehabilitated façade communicates maintenance, care and quality. In the short-term rental market — which in central Málaga commands prices of between €100 and €250 per night — the difference between a building with a rehabilitated façade and one without directly translates into occupancy rate and the price the market accepts.

Case 3: The outdoor space on the Costa del Sol

In no other Spanish market does outdoor space represent proportionally more value than on the Costa del Sol. The reason is obvious: the climate allows it to be genuinely used for eight or nine months of the year, and it is the main reason most international buyers — who account for more than 30% of transactions in the province of Málaga — decide to buy here.

A well-designed terrace — with quality paving, integrated planting, accent lighting, a shaded pergola area and, where space allows, a pool or jacuzzi — can add disproportionate value relative to its cost. A 40 m² terrace that with an investment of €25,000–40,000 is transformed from a neglected space with terrazo tiles and a broken blind into a quality outdoor living area can increase the total value of the apartment by €50,000 to €80,000 in high-demand areas such as the historic centre, Pedrizas or La Malagueta.

The variables with the greatest impact on value

Not all interventions create the same return. These are the ones that add most value in the Málaga market, in approximate order of impact:

• Natural light: increasing openings, adding rooflights, redistributing so that living spaces receive direct sunlight. It is the factor buyers value most in all preference surveys.
• Layout efficiency: eliminating unnecessary corridors, opening the kitchen into the living room, creating a master bedroom with en-suite bathroom. The sense of spaciousness is directly proportional to the quality of the layout.
• Indoor-outdoor connection: especially in the Costa del Sol market, fluidity between the interior and the terrace or garden is a decisive factor of value.
• Energy efficiency certificate: international buyers with experience in the European market increasingly require the energy rating. A home with an E or F rating loses value compared with a C or D in the same building.
• Kitchen and bathrooms: these are the spaces with the greatest visual impact on the purchase decision. A functional kitchen with quality equipment and a well-designed master bathroom alone justify much of the premium price of a renovated home.

What architecture cannot fix: necessary honesty

There are situations where an architectural investment will not generate the expected return, and it is worth saying so clearly:

• Irreversibly poor location: a property on a street with permanent heavy traffic noise, in a building with unresolved communal structural problems, or in an area with no real demand, will not appreciate however good the interior renovation is.
• North-facing with no possibility of new openings: if the flat has all its main windows facing north and new openings cannot be created, the lack of natural light has a limit that design cannot fully overcome.
• Insufficient floor area for the intended use: a 35 m² studio in a city where the market requires a minimum of 50–60 m² for quality short-term rental is not transformed into a premium product simply through renovation, however excellent.
• Unresolved structural problems: no finishes renovation resolves a compromised structure. If the slab is in poor condition or the load-bearing walls have pathologies, these must be resolved before investing in anything else.

The Málaga market: reference data

According to data from the College of Land Registrars and the Idealista portal, the average property price in the province of Málaga closed 2024 at around €2,400/m² as a provincial average, with significantly higher values on the coastal corridor (Marbella–Estepona, €4,500–6,000/m² in prime areas) and in central Málaga (€3,000–4,500/m²). In this context, a well-executed comprehensive renovation that substantially improves the spatial quality and energy efficiency of a property is not a cost: it is a market position.

Do you own a property on the Costa del Sol and want to assess its value-add potential through architecture? Get in touch. At Santos Arquitectos we work both with owners who want to improve their home and with investors looking to optimise the return on their property assets.