Rehabilitation of housing on Fuerteventura to increase profitability

Rehabilitation of housing on Fuerteventura to increase profitability

The rehabilitation of housing in Fuerteventura is a sustainable investment option , which usually requires a lower cost and investment time than new housing.

The real estate market in Fuerteventura has closed 2023 with very positive data in terms of number of transactions and closing price of operations.

According to the latest Destiny Home real estate report, during the third quarter of 2023, 767 real estate transactions were formalized in Fuerteventura (Fomento data), which represents 56.53% more operations than in the same period of the previous year.

This positive evolution can also be found in the value of real estate, going from an average price per square meter in the province of Las Palmas of 2,066 euros in December 2022, according to the portal Idealista, to 2,279 euros just one year later, which represents an increase of 2,279 euros. increase in the value of real estate of 10.3%.

This accelerated upward progression has meant that there is currently a large gap between supply and demand, making it increasingly difficult for buyers to find a property that meets their needs due to the scarcity of available homes.

Advantages of housing rehabilitation in Fuerteventura

To alleviate this situation and bring to the market new assets to market, the rehabilitation of housing in Fuerteventura is presented as one of the best investment options.

Among the advantages of this modality for small and medium-sized investors compared to new construction, we highlight the following:

  • It is a more sustainable option
  • It represents a lower cost, thus allowing to achieve a higher benefit
  • Requires a shorter development time
  • Allows cities to be transformed according to current needs
  • Bringing obsolete housing back into circulation

Fuerteventura’s most profitable municipalities

Before opting for a housing rehabilitation in Fuerteventura as a way of investment, it is convenient to analyze a series of factors that have a direct impact on the profitability of the project. We are referring to aspects to calculate the profitability of an investment such as:

  • Type of property: apartment, apartment, villa, duplex, townhouse… According to our latest report on the real estate market in Fuerteventura, 58% of property purchases are made on flats/apartments.

Download Fuerteventura Real Estate Report (pdf)

  • Associated costs: in addition to the rehabilitation costs themselves, other costs such as taxes, fees, insurance, financing costs, etc., should be taken into account.
  • Taxation: once we have the house rehabilitated, how will it affect our taxation? income tax, IBI, community of neighbors, utilities…
  • Marketing Momo: How will we monetize the property? Will we choose to sell or rent?
  • Location of the property: the location is crucial, considering aspects such as accessibility, neighborhood quality and development potential.

Within these last two aspects (marketing mode and location) should review our article The most profitable municipalities of Fuerteventura to buy and sell housing to check which locations of Fuerteventura are the most profitable if we opt for the rehabilitation of housing for subsequent sale.

Location Price m2 sale March 2019 (€/m2) Price m2 sale March 2022 (€/m2) 5-year net return
La Oliva 2.101 2.702 29%
Antigua 1.753 2.181 24%
Tuineje 1.493 1.732 16%
Province Las Palmas 1.877 2.127 13%
Pájara 1.940 2.146 11%
Puerto del Rosario 1.269 1.296 2%
Betancuria X X X

Table prepared by Destiny Home based on data published by Idealista.

Bristol SUNSET BEACH: Housing rehabilitation in Fuerteventura

Bristol Sunset Beach is our biggest and latest success for investors, a clear example of housing rehabilitation in Fuerteventura with high returns.

The complex was initially a bank repossession asset in very poor condition: rubble, no swimming pool, unusable roofs, poor housing distribution and even with a significant percentage of occupied dwellings.

After two years of construction, the first two blocks are proposed for sale to investors and vacation home buyers. Some of our investors have achieved not only annual returns, but also a five-fold increase in the value of their investment through the appreciation of the property.

With the money raised, work was completed on blocks 1, 2 and 3 (these blocks are still owned by Destiny) as well as on the common areas and roofs. The sale of these last three blocks was made through a mandatory tourist management mandate: the buyer has to make 100% of the apartments profitable as vacation homes, while we maintain the management of all the properties.

Vacation rental management

At Destiny Home we are responsible for the management of the Bristol SUNSET BEACH vacation rental. With the objective of improving the profitability and maximizing the income of our clients’ vacation rentals, Destiny Home takes care of the cleaning of the property, the management of reservations, departures, arrivals, attention to incidents and communication with guests. All this to achieve the maximum satisfaction of our visitors, something that allows us to maintain a high occupancy rate throughout the year.

To date, we can affirm that, although the profitability of these apartments varies depending on the investment made in each one of them and the annual income from tourist management, the average profitability ranges between 22,000 and 25,000 euros per year.

Bristol SUNSET BEACH housing rehabilitation

Real estate services in Fuerteventura

At Destiny Home we offer qualified and personalized real estate services We offer a wide range of services that cover all our clients’ needs, from real estate management services for owners, tenants and buyers, to comprehensive administrative management of short and long term rental properties, to consulting and investment services, as well as housing rehabilitation services.

In our business we offer our clients our entire technical team for the design, execution and technical direction of all our works of rehabilitation and renovation of houses.

If you are thinking about a housing rehabilitation project in Fuerteventura, you can contact our team.

Below we leave you with our dossier of real estate services in Fuerteventura so you can learn a little more about how we can help you to make your savings profitable.

Download the Fuerteventura Real Estate Services Guide (pdf)

× Whatsapp