RENOVATE OR DEMOLISH? THE INCONVENIENT TRUTH ABOUT THE COSTS OF ITALIAN HOUSES

Italy has one of the largest and, at the same time, oldest real estate assets in Europe. Millions of homes were built before the seventies, in a period in which concepts such as thermal insulation, energy efficiency, seismic safety and correct integration of systems were absent or addressed according to criteria completely different from the current ones. The result is there for all to see: buildings that consume too much, heat poorly, have humidity problems, obsolete systems and structures that are difficult to adapt to contemporary needs. Despite this, the Italian market continues to concentrate most of its investments on the recovery of the existing. According to Cresme data, maintenance and redevelopment represent a largely prevalent share of the construction market, while new construction remains marginal. In part it is understandable. Recovering a building makes it possible to limit land consumption, preserve the identity of places and enhance properties that have architectural, historical or emotional characteristics that are difficult to reproduce. But there is also another side of the coin. Many interventions are not real redevelopments, but a succession of partial works: the windows and doors are changed without solving the thermal bridges, the boiler is replaced without reducing dispersion, the floors are redone leaving the underlying systems intact, photovoltaic systems are installed on buildings that continue to consume enormous amounts of energy. It is what we could call the frenzy of patching. We intervene where the problem is most visible or where there is an incentive, without asking whether the building, as a whole, still has technical characteristics that justify the investment.   The real question, therefore, is not simply: “How much does it cost to renovate this house?” The correct question is, “Does it really make sense to invest this amount in this building?” And it is a question that should be asked before the purchase, not when the deed has already been signed.  

THE TRAP OF THE WORD “RESTRUCTURING”

One of the main problems arises from the ambiguity of the word restructuring. In common language, the same term indicates both the simple replacement of floors and the complete renovation of structures, roofing, envelope and systems. But they are profoundly different interventions, with levels of complexity and costs that cannot be compared. A light renovation (ordinary maintenance), consisting of painting, replacement of finishes, floors and small internal changes, can have an indicative cost in the order of 800 euros per square meter. A medium renovation (extraordinary maintenance), in which the systems are redone, the internal distribution is modified, the windows and doors are replaced and the insulation is partially intervened, can reach approximately 1,400 euros per square meter. A heavy renovation or conservative restoration, involving roofing, floors, masonry, structural consolidation, complete insulation of the envelope, windows and systems, can reach or exceed 2,000–2,200 euros per square meter. Of course, these are average and indicative values. The real cost depends on the condition of the property, the area, the finishes, the accessibility of the construction site, the need for structural works and the presence of any discrepancies. The important fact, however, is another. When it comes to a heavy renovation or restoration, the cost of the intervention begins to overlap with that of a demolition and reconstruction, which can be approximately between 2,500 and 3,500 euros per square meter. At that level of investment, it is no longer enough to ask whether it is possible to recover the building. We need to evaluate whether it is really convenient to do so. Spending 2,200 euros per square meter to maintain a structure born fifty years ago can be correct when there is a historical, architectural, urban or emotional value to be preserved. In many other cases, however, there is a risk of spending as much as a new construction, still obtaining a building conditioned by the original limits.  

WHY THE NEW ONE HAS AN ADVANTAGE

When the costs of heavy renovation and rebuilding start to approach, new construction has technical advantages that are hard to ignore. Building from scratch means designing foundations, structures, envelope, systems, internal distribution and energy performance as parts of a single system. Renovation, on the other hand, is almost always a process of adaptation. Every choice must be confronted with what already exists: load-bearing walls, limited heights, floors that are not perfectly flat, unknown foundations, openings that are difficult to modify, structural thermal bridges and systems built in different eras. Even a seemingly simple internal distribution can become complex. The wall you would like to remove may be load-bearing. The new opening may require a structural circle. The movement of a bathroom may be limited by the height of the drains. An apparently recoverable attic may not have the necessary heights. A roof that still seems efficient could hide infiltrations, deteriorated timber or layers made without continuity. Heavy restructuring is therefore a reactive and constantly evolving process. The initial project is continuously checked and adapted according to what emerges during the construction site. And it is precisely here that many of the cost increases and unpredictable variants arise.  

THE ECONOMIC PROBLEM OF THE SUBURBS AND SMALL MUNICIPALITIES

In large cities and high-demand real estate areas, the high value of real estate can absorb even a very expensive renovation. If a renovated apartment has a significant market value, investing 1,500 or 2,000 euros per square meter and taking advantage of tax deductions can make economic sense. The problem becomes more evident in small municipalities, suburbs and areas with weak real estate demand. Here it can happen that the purchase and renovation cost clearly exceeds the final value of the property. A house is bought for 100,000 euros because it seems cheap. Subsequently, 180,000 or 200,000 euros of work emerge. Adding taxes, notary fees, planning, paperwork, charges and contingencies, the total investment can exceed the market value of an already renovated house or even a new construction in the same area. It is the economic limbo of a substantial part of Italy’s heritage. Buildings that are not yet ruins, but which are too obsolete to be inhabited according to contemporary standards without significant investments. Tax incentives have often made it possible to reduce some of the cost, but they cannot automatically transform a technically inadequate building into a good investment. A bonus can improve the income statement of a sensible intervention. It cannot make sense for a wrong operation at the base!  

THE REAL MISTAKE IS CALLING THE TECHNICIAN AFTER THE PURCHASE

In my work as an architect specializing in renovations and energy requalifications, I frequently meet owners who contact me after buying the property. They come with a floor plan, some photographs, and a pretty good idea of what they’d like to accomplish. A large living area, two bathrooms, a heat pump, underfloor heating, insulation, photovoltaics and maybe an extension. Only then do the checks begin. It turns out that a wall is structural, that the roof needs to be redone, that the ground floor has moisture, that the electrical system needs to be completely replaced or that a part of the building does not correspond to the available documentation. At that point the technician can design, solve and optimize. But he can no longer correct the initial decision…. It cannot give the customer back the bargaining power they had before the purchase. After purchase, the technician can help solve the problems. Before purchasing, it can help you avoid them. That’s the real difference!  

WHAT A TECHNICIAN CAN EVALUATE BEFORE BUYING

A preliminary technical consultation is not a substitute for a comprehensive planning compliance check, an energy audit, an in-depth structural analysis or a detailed design. However, it can provide an extremely useful first picture. During an inspection, an expert technician can assess the general characteristics of the building, identify the main visible critical issues and compare the buyer’s expectations with the real possibilities of the property. It can understand whether the desired internal distribution is reasonably achievable, whether there are particularly binding structural walls, whether the roof shows signs of degradation, whether there are damp phenomena and whether the systems are recoverable or completely obsolete. It can also express an initial assessment of the possibilities of energy requalification, structural and physiological criticalities of the building. Not only by indicating whether it is possible to install a thermal insulation or a heat pump, but by trying to understand whether these interventions make sense within an overall strategy. Finally, it can identify any signs of discrepancy between the state of the property and the available documentation, suggesting when it is necessary to proceed with access to the documents or with more in-depth checks. It is not yet a question of designing the house in detail. It is a question of understanding whether the technical and economic conditions exist to continue.  

AN EXPENSE OF 500–600 EUROS TO PROTECT A PURCHASE OF HUNDREDS OF THOUSANDS

An initial pre-purchase technical consultation, including the examination of the available documentation, an inspection and a general assessment of the criticalities, can have an indicative cost of about 500-800 euros. The fee can naturally vary depending on the size, complexity and location of the property. On a purchase of 200,000 euros it means investing about 0.25% of the price to obtain an independent technical reading of the operation. A minimal figure compared to the risk of later discovering a roof to be redone, a system to be completely replaced, a humidity problem, a structure that is difficult to modify or an administrative discrepancy. It is not an absolute guarantee against any surprise: no serious professional could promise it on the basis of a single inspection and without invasive investigations or complete documentary verifications. However, it is a guarantee of awareness. It allows you to know what the main risks are, what further investigations are necessary and what a realistic order of magnitude of the intervention may be. In many cases, counselling allows you to proceed with greater peace of mind. In others, it offers concrete elements to renegotiate the price. In still others, it can lead to giving up the purchase. And even advising against a house can be the result of good advice. Better to lose a property that seemed like a bargain than to buy a problem destined to absorb time, resources and savings for many years.  

RENOVATE OR DEMOLISH? FIRST YOU HAVE TO DIAGNOSE

Let’s start with the fact that there is no one-size-fits-all answer for every building. Historic centers, listed buildings and prestigious buildings have values that go beyond simple economic comparison. In these cases, recovery can represent not only a technical choice, but a cultural duty. Even many ordinary buildings can be redeveloped with excellent results, especially when they have healthy structures, good exposure, adequate volumes and a distribution compatible with contemporary needs. However, there are properties in which the sum of the necessary interventions makes recovery unprofitable. Continuing to invest in individual interventions, without a general strategy, often means spending a lot without solving the root problems. The solution is not to demolish everything. The solution is to stop making decisions based on impressions. Before purchasing and before starting work, a specific diagnosis is needed that considers at least the construction state, structural vulnerability, energy performance, systems, urban planning constraints and the overall cost of the operation. Only after this analysis is it possible to seriously compare three alternatives: renovate, demolish and rebuild or not buy.