Key Takeaways
- 1New build supply is limited and prices are rising.
- 2Older villas in prime locations offer better value per square meter.
- 3Budget €800-€1,200 per sqm for a full modernization.
With new build prices in the 'Golden Triangle' (Marbella, Estepona, Benahavís) rising by 12% this year, savvy investors are turning their attention to older stock. Here is why buying a fixer-upper might be your best move in 2025.
The 'Good Bones' Strategy
The best plots on the Costa del Sol were built on decades ago. Older villas in established areas like Elviria, Nueva Andalucia, and Nagüeles often boast larger gardens, better views, and more privacy than modern developments where density is maximized.
By buying an older property, you are paying for the location and the land, rather than the developer's premium. With the right renovation, you can create a modern luxury home for significantly less than the cost of a new build.
Budgeting for Success
Renovation costs have stabilized after the post-pandemic spike, but budgeting correctly is crucial. For a full modernization of a 1980s or 1990s villa, you should budget between €800 and €1,200 per square meter.
This budget typically covers:
- Structural changes: Opening up living spaces and removing partition walls.
- New systems: Complete rewiring and new plumbing (essential for older homes).
- Windows: Upgrading to double or triple glazing for energy efficiency.
- Finishes: New flooring (microcement or large format tiles), kitchen, and bathrooms.
Hidden Costs to Watch For
When renovating in Spain, always set aside a contingency fund of 10-15%. Common surprises in older villas include:
- Damp issues: Often caused by poor original waterproofing or bridging of the damp proof course.
- Illegal extensions: Check that all parts of the building are registered in the Property Registry.
- Outdated septic tanks: You may need to connect to the mains sewage system if available.
Finding the Right Team
A successful renovation relies on a trusted team of builders and architects. Don't rely on "a guy at the bar". You need verified professionals with a track record of delivering projects on time and on budget.
