Renovate or Sell: What is Best for Tenerife in 2025?
In 2025, the real estate market in Tenerife continues to show strong demand for housing, both for primary residences and for investment in holiday rentals. Many owners face the same dilemma: should I invest in a renovation to increase my house’s value or sell it as it is?
The answer depends on several factors: the condition of the property, the area, your available liquidity, and the timeframe in which you want to close the operation. In this article, we analyze in detail the pros and cons of each option to help you make an informed decision.
Why Consider a Renovation Before Selling?
Renovating your home before putting it on the market can be a profitable strategy, especially in a destination like Tenerife where aesthetics, comfort, and energy efficiency are highly valued by national and international buyers.
Some compelling reasons:
Immediate Revaluation: A well-executed renovation can increase the property’s value by between 10% and 20%.
Attracting Demanding Buyers: Modern kitchens, renovated bathrooms, and bright spaces generate greater interest and justify higher prices.
Better Online Presentation: Photos of a renovated property stand out against the competition, leading to more viewings and more offers.
Profitability in Holiday Rentals: If your plan is to rent it out, a renovated property achieves better ratings and higher occupancy.
Most Profitable Types of Renovations in Tenerife
Not all renovations add the same value. These are the ones that offer the highest return in 2025:
Kitchen Renovation: Modernizing countertops, cabinets, and appliances can add up to 15% in value.
Bathroom Renovation: Changing fixtures, tiles, and taps can increase the sale price by 10%.
Energy Efficiency: Installing double-glazed windows, improving insulation, or switching to more efficient systems revalues the property by 5% to 8%.
Painting and Finishes: A small investment with a great visual impact that facilitates the sale.
Home Staging: It is not a structural renovation, but reorganizing furniture and improving lighting can make a difference in the first impression.
When is it Better to Sell Without Renovating?
Sometimes, undertaking a renovation is not the most suitable option. These are the most common cases:
Lack of Liquidity: If you do not have the capital available to invest in the renovation.
Quick Sale Needed: When you require immediate liquidity and cannot wait months.
Stable Market in Your Area: If the price of homes is already high and competitive, it may not be worth investing more.
Buyer Profile: Some investors prefer to buy properties without renovation to adapt them to their own taste.
In this case, the strategy should focus on a realistic valuation and careful presentation, even if the house is not updated.
The Real Estate Market in Tenerife in 2025
Tenerife is experiencing a moment of high demand from European residents seeking second homes, as well as investors betting on holiday rentals. This means the potential for revaluation is high, but also that competition between properties is strong.
Buyers generally value:
Energy efficiency and sustainability.
Move-in ready homes.
Areas with good transport links and services.
Therefore, a renovated property will always have an easier time standing out.
How to Calculate if Renovating or Selling is Better?
A good starting point is to crunch the numbers:
Estimate the cost of the renovation.
Consult the current market value of your home.
Calculate the expected increase after the renovation.
Compare the net profit of both options.
Example:
House for sale without renovation: €180,000
Renovation (kitchen + bathroom + painting): €20,000
Sale price after renovation: €220,000
Extra net profit: €20,000
In this case, it is worthwhile to renovate before selling.
Conclusion
In 2025, deciding between renovating or selling in Tenerife depends on your personal and financial goals. If you are looking for speed, selling without renovation is a valid option. But if your goal is to maximize the property’s value, a strategic renovation can be the key to achieving a higher price and attracting more buyers.
At Proyectos Insulares, we help you analyze your case, offer real estate advice, and, if you wish, manage both the sale and the renovation of your home.
Contact us for advice without obligation.
