Before making any reform, it is important to know the viability of the project as not all buildings are likely to be converted into housing.
Murcia, together with La Rioja, is the autonomous community where the index of real estate efforts is lower. According to the Appraisal Society’s trend report, in the second quarter of 2022, Murcians had to spend 4.6 years of their full salary paying for a house, a figure far from the 7.3 years it takes on average to devote in the homeland as a whole, and even more than the 8.6 years to be devoted in Madrid or the 15.8 years in the Balearic Islands, the community that leads the ranking.
However, buying a house in Murcia today is 5.09% more expensive than a year ago and the situation of uncertainty in terms of prices, mortgages and the like favors the search for alternative formulas that give access to a residential solution in more advantageous requirements. Converting a building into a home is one of the formulas that gets followers. In some cases, the sale of the property is more affordable and if the reform is not particularly expensive, it can be an interesting alternative, either to access a property that is owned or simply as an investment.
In any case, before considering any options, it is important to be clear about the requirements and costs that the project may entail. To begin with, it should be clear that not all buildings are suitable for conversion into living space. Firstly, the property in question is built on urban land, an aspect that a priori most properties usually meet. But even if this is the case, it must also be ensured that the limitation of dwellings per hectare set in the municipal bye-laws is not exceeded. From there, the change must adapt to the requirements of the Technical Building Decree (CTE) in terms of accessibility and facilities (electricity, sanitary facilities, ventilation…).
Community approval for the change is one of the essential requirements for converting a property in Murcia into a home. In the same way, it is necessary to comply with the regional specifications laid down in terms of habitability and generally referred to as the minimum living area.
If the conditions of the property allow it, the advice of an expert is essential when carrying out the transformation. The City Council will be responsible for whether or not to approve the change of use of the property and this will require the submission of a technical project prepared by an architect, as well as the application for the corresponding building permit, after payment of the municipal fees. In addition, account must be taken of the other administrative procedures which, beyond the intervention of the architect or the town hall, include the procedures in the register and the land registry.
In any case, the price depends on several factors, although it is usually between 4% and 6% of the total cost of the work. In figures, an average project could be around 1,000 or 2,000 euros for the architect, another 1,000 euros more for fees and taxes at the town hall and 1,000 euros more for the legal proceedings with Land Registry, Register… , moreover, the costs of the work as such, which, although subject to many factors, are usually between 400 and 800 euros per square meter, depending on things such as the size of the intervention, the cost of materials…
Despite being one of the regions to record a lower real estate effort, house prices in Murcia have not stopped growing over the past year. It was not until the month of July that the increase in multi-year interest rates exceeded the average recorded across the country by half a point. According to the flats.com sales price report, second-hand homes last July stood at €1,112/m2, 5.09% more than a year ago. Even more pronounced is the price increase in the capital, where purchase prices rose by more than 13% last year to €1,384/m2.
However, the real estate sector will not be immune to the impact of the recent 0.50% increase in official European Central Bank rates. For the director of Estudios de piso.com, Ferran Font, the measure “leads to more expensive financing. Because mortgages aren’t as cheap as they used to be, it’s possible for buyers to curb their enthusiasm for buying a home and put off their decision to increase their previous savings so that the amount borrowed is smaller” something that, in terms of prices and according to the expert this does not mean “deep corrections, but we will witness a cooling in the upward trajectory”.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
