Is investing in retrofitting worth it?

Real estate investments are surprising and cover different categories, such as purchase, resale and renovation. And today, with the trend of appreciation of large urban centers, a new type of path emerges in the real estate area: Investing in retrofit .

The word, little known, consists of the modernization and revitalization of old buildings, already impacted by the changes caused by time, as well as correcting infrastructure to make the property safer.

By the concept itself, investing in retrofit means revitalizing a space, maintaining its original architectural and historical characteristics, to make it more attractive to potential buyers, that is, it is a change aimed at increasing the value of the property in the real estate market .

To learn more about what retrofit is, continue reading.

What is retrofit?

It is common to walk around large Brazilian cities and see beautiful properties that are in poor condition and/or abandoned. Some of these same buildings may undergo renovation work to modernize their facilities and make them safer. This operation is called retrofit.

In order to maintain the property's original conditions, retrofitting also promotes changes to bring more security and modernity, in line with current demands, especially those of the market.

Retrofit objectives

The main objective of retrofitting is to modernize and technologically update a building. Thus, buildings without accessibility or basic safety requirements can undergo a retrofit process. However, there are other objectives associated with retrofitting, such as:

• Update building facades;
• Apply new energy-efficient technologies, such as lighting and refrigeration;
• Improve building maintenance through new technological solutions;
• Adopt safety and accessibility standards, in compliance with legislation;
• Promote sustainability by revitalizing existing buildings.

As building a property from scratch can be challenging, retrofitting presents itself as an important and sustainable alternative to revitalize urban spaces in large cities.

Advantages of retrofitting

When thinking about investing in retrofitting , it is best to know the main advantages of this type of investment. Here are the main ones:

• Updating and modernizing a building;
• Increases the value of the property;
• Maintenance of local culture;
• Security;
• Possibility of creating new businesses;
• Economy with a view to the long term;
• Save time in approving and executing the work.

Revitalizing and updating a property means the birth of a new asset, which can function as a center for new businesses, with a hotel, combined with modernity and technology, with the implementation of new features.

Is it worth investing in retrofitting?

In recent years, the demand for occupation of urban centers has grown, with the revitalization of historical heritage. As a result, there has been an increase in the demand for buildings in areas that are already valued, but where there is no more space for construction.

Upgrading a property in an already disputed area can often be more expensive than building a project from scratch. However, given the new demands of today, such as reducing environmental impact and sustainability, the financial cost is now taking a back seat.

Furthermore, due to the limited space available in disputed areas, the arrival of a new development in an already valued area is an interesting alternative, as happened in Salvador, with the revitalization of the building that housed the old Jornal A Tarde and is now one of the branches of the Hotel Fasano.

So yes, investing in retrofitting is worth it, especially for preserving historical heritage and maintaining the local economy. However, it is best to have a specialized team to do so.

On our website you can read more about the real estate market and other investment alternatives. Be sure to check it out.

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