Renovating or selling a investment properties? The Right Strategy for Your Investment Property
The question "Refurbish or sell?" concerns more than the building itself: It determines capital commitment, income and the long-term asset strategy.
Date
2.3.2026
Author
Martin Brüngger
Topics
Apartment building
Investment properties
Real estate sales
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Renovate or sell: the right strategy is crucial
Owners of older investment buildings are often faced with the question: should I comprehensively renovate my property or is it better to sell it now? Both paths hold opportunities and risks. If you want to achieve the best long-term return, you should rely on facts, figures and professional analyses rather than gut instinct.
Refurbishment: maintain value and secure returns
Targeted modernization can sustainably increase the value and attractiveness of a home. Technical measures such as new heating systems or insulation reduce operating costs and increase the market value by 10 to 30 percent or more, depending on the location and condition of the property. It is important that refurbishment costs and benefits are realistically weighed up against each other. Subsidies and tax benefits can also improve the balance sheet. However, renovations are time-consuming and cost-intensive and require a realistic assessment of the effort involved and possible risks.
Sale: strategic liquidity instead of long-term capital commitment
In some cases, a sale is the more economically sensible solution – for example, if the building fabric is in need of major Renovation, the renovation costs exceed the potential added value or attractive market prices are on offer. Even if the rental income has already been largely exhausted, a renovation may only be able to offset the investment and associated rent increases to a limited extent. A professionally determined market value is crucial in order not to give away the return. A strategic sale can free up capital that can be invested in higher-yielding investment properties or used for retirement provision.
“Owners of investment properties should always assess refurbishments in the context of their overall strategy. Not every investment automatically increases the return; sometimes selling is the more efficient use of capital,” says Martin Brüngger, Head of Investment Properties.
