Noise and dust are not the biggest headache of home renovations today. The problem comes from the increase in costs, the budgets that have to be closed in a hurry and longer times than usual.
The increase in prices has been constant since January, they point out from the sector. An analysis by Donpiso shows increases of 30% in reforms, at 650 euros/m2 in the standard ones and 800 euros/m2 in the high-end ones. “In general, everything goes up”, reviews Miguel Ángel Vázquez, responsible for reforms and new construction of the real estate company. Wood, iron, aluminum or glass have become more expensive in recent months. They rise due to the rise in energy costs –as in the local tile industry–, the lack of stock and difficulties in transportation, the instability caused by the war and the fact that in some cases there is a shortage of personnel.
“The rate of growth is stabilizing, but what has gone up is unlikely to go down,” Vázquez believes. The reform that cost 5,000 euros a year ago today can go to 6,000. "The costs associated with a reform depend on various factors and vary considerably depending on the details of each project," explain sources from Leroy Merlin, who detail that not all of the increase is being transferred.
Another problem that is occurring is that the demand is not enough, lengthening the execution. “I asked for a budget in February. They didn't pass it to me until June because they were very saturated. We closed it in July and the works will start in September...”, explains Yolanda –fictitious name of a real testimony–, in a case that is repeated.
“The more prices rise, the more plans are out of adjustment. Before it was normal to commit for 3-6 months to a budget. Now only a month or even fifteen days, ”explains Javier Torremocha, director of the channel for reforms and rehabilitation of the Union of Real Estate Credits (UCI). And it takes longer to start up due to increased demand and a certain lack of manpower. “To start, before, orientation was given for one or two weeks, now they give you a couple of months of lag. It is more difficult for it to be done in the time frame you want”, he points out.
The advice is to close a budget as soon as possible. "It's a race against prices," synthesizes Vázquez. You have to book and pay to freeze references, "if three months go by, it's already updated." “The decision to extend it can raise the price. A certain tension is generated by having to define in less time, ”says Torremocha. The most common bathroom and kitchen reform used to be around 20,000-25,000 euros. Now it is at 30,000, they calculate from the UCI. The alternative to cut deadlines and costs is to use more prefabricated. “It is also being recommended to choose based on stock. Deciding on what is there, not what you would like”, says Vázquez.
The increase in prices has another consequence: more financing is requested. "We perceive 25% more clients who formalize with us a financing in reforms", they inform in Leroy Merlin.
