English 
Polski
Español
Français
Italiano
Deutsch
Українську
### Property Flips: Transforming Two Commercial Spaces into a Stylish Loft
Property flips are an investment strategy that involves purchasing a property, renovating or modernising it, and then selling it for a profit within a short timeframe. This process typically includes several key steps:
1. **Purchase**: The investor acquires a property, often in a state that requires repairs or in an attractive location where its value can be increased.
2. **Renovation**: After the purchase, the investor undertakes renovation work, which can range from minor improvements to major construction projects. The goal is to enhance the property's value.
3. **Sale**: Once the renovations are complete, the property is put on the market. Investors aim to sell it for a price higher than the combined costs of purchase and renovation, allowing them to realise a profit.
Property flips are popular among investors who have experience in the real estate market and skills in managing construction projects. The key to success in this strategy is accurately estimating renovation costs and understanding the local real estate market to predict what price can be achieved upon sale.
---
### Transforming Two Commercial Spaces into a Loft in Prosperidad, Madrid
Following the success of the first two episodes of "Lo Vendo Lo Alquilo" on the Decasa channel, our third episode presented an exciting challenge: converting two old commercial spaces into an attractive and elegant loft in the Madrid neighbourhood of Prosperidad. Located in the traditional Chamartín district, which is predominantly working-class, this area has its origins in the second half of the 19th century. It was during this time that the first inhabitants began to settle in what would become one of the most quintessentially Madrid neighbourhoods.
The neighbourhood of Prosperidad has its roots in the second half of the 19th century, although it flourished in the 1960s and 70s. Interestingly, its name does not reflect the reality of the area. Prosperidad is named after one of the first property owners in the area: Próspero Soynard. Over the years, the neighbourhood transformed, and in the 60s and 70s, taller residential buildings were constructed to accommodate the influx of people migrating from rural areas to major cities.
The neighbourhood grew significantly in the second half of the 20th century due to the mass migration from rural areas to urban centres.
In one of these buildings, we had to convert and renovate two old commercial spaces into a loft with all the modern conveniences. Our goal was to transform an old clothing store and a shoe workshop into a luxurious apartment designed for a single person or a couple, complete with a bedroom, dressing room, kitchen with all amenities, living room, bathroom, and a work area that could be converted into a dining space.
**ECONOMIC DATA:**
- Investment made: €90,000
- Renovation, furniture, decoration, and projects: €50,000
- **Total investment:** €140,000
- Current rental price in the area: €1,100/month for long-term rental and around €2,500 for holiday rentals.
**A Quick Overview of the Renovation**
One of the first issues to resolve upon acquiring these two spaces was changing their use from commercial to residential, allowing us to proceed with the renovation. Both spaces had an average of 17 square metres, with one of them featuring an 18-square-metre basement, totalling 52 square metres. This area, spread over two floors, provided numerous possibilities for the renovation.
The total area of the spaces was 52 m², including the lower floor of about 18 m².
For the team at pandoapartments.es, it is essential to work with high-quality materials that enhance the efficiency of the homes in which they carry out renovations. All materials, from paint to wallpaper, kitchens, and furniture, are of high quality. This is evident in the façade, which has been completely reconstructed and fitted with windows featuring thermal breaks and a security door.
The façade has been entirely renovated with top-quality materials.
Both in the renovation and in the furniture design, created by pandoapartments.es for this project, the principles of industrial-style lofts were followed: exposed materials, raw wood, natural finishes, and open spaces with high ceilings.
Natural finishes and a raw effect, along with high ceilings, helped us define an industrial style.
**Floor Plans**
As is common in such projects, the first hurdle was encountered on the lower floor. With a height of 2.10 metres, it was impossible to create a habitable space on this level according to regulations. Fortunately, the floor was sandy, allowing us to excavate the necessary 30 centimetres to convert this level into an additional part of the bedroom.
**Original plan of the two spaces located in the Prosperidad neighbourhood.**
One of our initial options was to create a loft with the bedroom on the main floor. The high ceilings, which were further increased by removing the false ceiling, allowed us to consider utilising each space for a different function. In our first proposal, the dressing room and a large bathroom were located on the lower floor, creating a very personal and intimate area. Then, on the main floor, we planned the kitchen, living area, a small toilet, and a work area. Finally, the loft would feature a cosy bedroom.
In our first proposal, the bedroom was situated in a loft above the living area.
This option was discarded because the height of the bedroom was too low. We then relocated this space to the lower floor, converting the dressing room and bathroom proposed in the first project into a bedroom with a dressing area. The upper floor would house the kitchen, living room, and work area, along with a fully equipped bathroom.
Ultimately, we decided to place the bedroom with a dressing area on the lower floor and the rest on the main floor.
**Our Project**
When we first stepped into the two old spaces to be renovated, the idea that inspired us from the outset was to transform the area into an industrial-style loft. The high ceilings, open space, and large windows (which we installed) helped us create an attractive apartment with all the characteristics of this decorative style, as well as all the modern conveniences.
The unique features of the spaces helped us define the decorative style.
One way to achieve a sense of continuity throughout the home was through the floor paint, which mimics concrete, giving it the industrial character we sought. The natural wood finishes, also known as raw effect, in the furniture help create this atmosphere, which is enhanced by details in paint that imitate iron. With wallpaper that resembles brick, along with natural wood and the imitation of iron, we achieved a very appealing and cosy result.
We achieved the effect of continuity by painting the floor the same colour, with a clear industrial touch.
**Our Collaborators**
The projects in which pandoapartments.es participates boast great success, partly due to the quality of the materials used by our collaborators. From our interior design studio, we design the spaces that we then furnish and decorate in collaboration with other brands.
From our interior design studio, we design the spaces that we later decorate.
Thus, the ceramic cladding of the façade and the kitchen wall comes from the Build Grey Natural range by Cerámicas Aparici, a well-known ceramics company in Spain. All sanitary ware and bathroom accessories, including the toilet model Inspira In-Wash (which washes with water), are from the renowned brand Roca, as well as the Raindream ceiling shower and the Victoria shower screen (also from Roca). The electrical mechanisms are from Simon's Series 100. The kitchen appliances are from Tien21, and the paint applied to floors, walls, and ceilings is from Hempel.
The kitchen appliances from Tien21 are "hidden" in the panelled kitchen.
Every detail has been meticulously attended to. One of the decorative resources we used in this project, which provided spectacular results, is wallpaper. This is a very eye-catching alternative to traditional paint, as it has several advantages: it is washable, light-resistant, and very durable. The wall decoration made of vinyl consists of a paper or fibre backing and a top layer, which can be PVC or PUR. There is a vast variety of vinyl wallpapers, either with smooth or textured surfaces. In our case, the wallpaper in the bedroom helped create a sense of depth, which is enhanced by the light from the LED strips placed in the ceiling.
The wallpaper in the bedroom, from Glamora, helps create depth in the space.
The wallpaper in the bathroom, with an exotic tint, is from the brand Glamora and features a special treatment for humid areas. The wallpaper in the rest of the home, from Koziel, mimics brick on some walls, while on others, it serves to provide spaciousness, as seen in the upper area that resembles a bookshelf.
In the bathroom (Glamora), the wallpaper is water-resistant. In the living room (Koziel), it helps create depth.
The ceiling fans, energy-efficient and with heating/cooling functions, are from Klassfan and feature a modern design, perfect for our project. Their combination with the lamp situated above the sofa, from Fokobu, creates a very attractive effect and also helps create a cozier atmosphere in a space with high ceilings.
The combination of the lamp (visible in the first image of the post) along with the fans helps manage the great height of the ceilings.
Another innovation in this project is the silicone radiators from the Climastar brand. These types of heaters are heat accumulators and programmable, as well as energy-efficient, since they heat the stone, and once the radiator is turned off, it retains the temperature for a while.
The radiators are made of silicone, a material that retains heat after being turned off.
Finally, the furniture, such as the kitchen units, bathroom furniture, dressing room, and backlit mirror, are our own designs and manufactured by Sukarma. Other pieces, also created by us, have been specially designed for this space, including the bed, bedside tables, coffee table, desk, and bookshelf. All pieces have a distinct industrial style, with finishes in natural wood and iron, giving them the industrial touch we sought from the very beginning.
The furniture has been specially designed for these spaces by our team.
**BEFORE AND AFTER**
We have our own design team, specialising in Interior Architecture and Lighting. We have collaborated with significant companies on renovation projects for both residential and office spaces. Of course, we also undertake design projects for private clients.
Example of Conversion of Two Commercial Spaces
**DATE OF ANALYSIS:** 15/11/2024
- **STARTING PRICE OF SMALL APARTMENT:** €750,000
- **STARTING PRICE OF LARGE APARTMENT:** €950,000
- **TOTAL PRICE:** €1,700,000
- **TOTAL PRICE FOR BOTH:** €1,650,000
- **TOTAL AREA:** €319/m², price: €5,172.41
**Renovation Costs:** €350,000
**Furniture:** €52,000
**Purchase Costs (6% - taxes):** €99,000
**TOTAL INVESTMENT:** €2,151,000
**ESTIMATED SALE:** €3,100,000
**€/m²:** €9,717.86
**ESTIMATED PROFIT:** €949,000
**ESTIMATED ROI:** 44%
---
This analysis outlines the conversion of two commercial spaces into apartments, highlighting the costs of purchase, renovation, and furnishings, as well as the estimated sale price and return on investment (ROI).
advertisement
