Before
After
€276k
Total Deployed
€340k
Sale Price
€64k
Net Profit
23%
Realised ROI
6 months
Hold Period
Av. Diagonal is one of Barcelona's primary residential arteries, cutting through Eixample, the grid district commanding the city's highest residential values, underpinned by its modernist architecture, dense amenity offer, and sustained demand from both domestic buyers and international end-users. Fully renovated units in this corridor trade at a significant premium to unreformed stock. We identified this 65.6 sqm unit as a clear value-add opportunity: the apartment had not been touched in decades. Original 1960s layout, cracked floor tiles, a non-functional kitchen, and two bathrooms requiring complete demolition. The building itself is structurally sound, but the unit's state made it unsellable to typical end-buyers, suppressing the asking price roughly 40% below comparable fully-renovated units in the same building. That gap is where we operate.
Investment Strategy
We acquired the 65.6 sqm unit at €193,000, approximately 40% below comparable renovated units in the corridor. All-in capital deployed including acquisition taxes (ITP ~10%), renovation, and professional fees: €276,000. The renovation (new layout, kitchen, two bathrooms, complete electrical system, flooring, and premium finishes) was completed in 5 months.
The unit was repositioned as a turnkey premium product and listed on the open market. It sold at €340,000. Against a total cost base of €276,000, that delivers a profit of €64,000, representing a 23% return on invested capital in under 6 months, equivalent to approximately 46% annualised. All proceeds were distributed to investors in full at closing.
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