Turning a commercial premises into a home: everything you need to know

Rising costs in the property market have led people to start looking into viable alternatives. One of the most popular options is converting a commercial premises into a home. However, it’s of the utmost importance to be aware of the legal requirements to comply with before this can be done. Next, we give you a rundown of how to go about converting a premises into a home in the right way.

Converting a commercial premises into a home

In theory, you can; however, there’s a few things to bear in mind before converting a commercial premises into a home. So, make sure you speak to the Town Planning office.

Firstly, check that the property is registered on urban land, which should be the case, given that premises are usually in cities. The next step would be to look into any restrictions related to the density of properties per hectare.

If this quota has already been reached, converting a commercial premises into a home could be tricky. What’s more, there may be construction or technical conditions that need to be complied with. Converting a commercial premises into a home must always comply with the Technical Building Code. Another big hurdle could be accessibility for people with reduced mobility, which you can get around by installing ramps, elevators and modifying doors. You’ll also have to look into matters such as adapting water, electricity and window installations to meet health and safety standards.

Requirements to convert a commercial premises into a home

Given the aforementioned restrictions, it’s of the utmost importance to bear in mind other requirements when buying commercial premises, whether shops or warehouses, as a financial alternative to getting on the property ladder. Property prices have gone up so much that many families aren’t in a position to get on the property ladder. The solution in recent years has been to convert a commercial premises into a home.

It’s worth differentiating between commercial premises in buildings and commercial premises that are at street level. Broadly speaking, the latter tend to be more expensive due to the significant construction work that needs to be carried out. In both cases, you’ll need to submit a change of use project drawn up by an architect that sets out the following requirements for converting a commercial premises into a home:

• Seek approval of the technical project from the corresponding council.
• Pay any municipal fees and taxes associated with a building permit.
• Register the cadastral alteration to record the change of use from commercial premises to a home.
• Obtain the habitation certificate and the energy efficiency certificate.

On the other hand, there are material requirements that must be complied with to ensure that the commercial premises can actually be converted into a home. Nevertheless, the regulations in place with regard to converting commercial premises into homes may vary slightly from one autonomous community to another, although they tend to be similar all over Spain:

• It must have a minimum usable space of 40 m² and comply with habitability regulations.
• Floor-to-ceiling height must be at least 2.5 metres.
• There must be installations to ventilate the kitchen and bathroom.
• The commercial premises must be at street level, not in a basement.
• The exterior façade must have a minimum width so windows can be fitted.

By following these steps and complying with the aforementioned requirements to convert a commercial premises into a home, you’ll be able to enjoy your new home without running into legal trouble.

How much does it cost to convert a commercial premises into a home?

Just like building a conventional home, the final cost of converting commercial premises into homes depends on a myriad of different factors, such as the surface area of the premises and the complexity of the renovation, to name but a few. We’ve got some approximate values below:

• Construction cost: €500 per square metre, so €40,000.
• The change of use project: €1,990.
• Project management: €1,500.
• Approval from the professional association: €200.
• Municipal permit, approximately: €300.
• Construction and refurbishment tax: €4,900.

Advantages of commercial premises converted into homes

Converting a commercial premises into a home isn’t just cheaper, you could be getting your hands on a bigger space to live in. What’s more, this means improved natural ventilation, greater versatility and freedom of movement.

On top of this, you can design your home from scratch. The architect’s project can include your personal needs such as bedroom sizes, living room design, bathroom finishes and décor.

Recommendations to convert a commercial premises into a home

In Spain, the way things are in the property market, not to mention widespread availability of empty commercial premises, make the idea of converting one into a home extremely attractive. Follow these tips to convert a commercial premises into a home.

• Meticulously choose the location of the premises. Going for somewhere with good transport links, schools, medical centres is key, because these will be all taken into account should you decide to sell further down the line.
• Make sure you’re up to date with all the local legal requirements in force. Don’t start construction work before obtaining all the permits because you could run into legal trouble, not to mention financial difficulties.
• When the renovation is complete, make sure you obtain the First Occupancy Licence. The next step is to formalise the change in use from a commercial premises to a home before a notary.

To sum up, now you know how to go about converting a commercial premises into a home, so it’s something to consider in view of too many people being priced out of the market. However, take into account any legal regulations and requirements. To successfully to this, only work with professionals and make sure you obtain all the permits required.