Luxury refurbishment

Luxury renovation refers to the comprehensive renovation and modernization of a property to a standard of quality that is significantly above the local market average-using high-quality materials, fine craftsmanship, and custom design choices that elevate the property into the upscale or premium segment. Unlike an energy-efficient renovation or a standard modernization, luxury renovation is not primarily aimed at cost savings or preserving the building’s structure, but rather at maximizing living quality and increasing property value. In Nuremberg, luxury renovations are particularly common in older apartments in prime locations as well as in high-quality single-family homes.

Typical Measures and Materials

A luxury renovation typically includes: the installation of natural stone floors (marble, travertine) or hand-selected solid hardwood flooring (e.g., smoked oak, walnut), high-end bathroom finishes with freestanding bathtubs, rain showers, and designer fixtures, custom-built premium-quality kitchens (e.g., Bulthaup, SieMatic), smart home integration (lighting, shading, security, heating), high-quality thermal insulation windows and doors, as well as the redesign of the facade, garden, or outdoor areas.

Floor plans are often gutted and reconfigured to make more effective use of space and create light-filled living areas. Artistic details such as stucco restoration, handcrafted tiles, or historically authentic materials play a particularly important role in listed buildings. The quality of workmanship and the selection of specialized craftsmen are crucial to the final result.

In addition to visible finishing elements, luxury renovation also includes invisible but value-determining measures: the complete renewal of the electrical system to current standards, the replacement of old heating systems with modern heat pump or hybrid solutions, the installation of a controlled ventilation system, and the reinforcement of impact sound insulation between floors. Those who renovate only superficially, without renewing these fundamentals, risk the luxury aesthetic losing value in the long term due to technical defects.

Cost-Effectiveness and Value Appreciation

The central question in a luxury renovation is profitability. An investment of €1,500-2,500 per square meter of living space (which is not uncommon for a luxury renovation) pays for itself only if the market is willing to pay the corresponding premium for the property. In prime locations in Nuremberg such as the Burgviertel, Gostenhof gentrification areas, or upscale neighborhoods like Mögeldorf, a luxury renovation can raise the selling price by 30-60% above the value of an unrenovated property.

In outlying areas or structurally weak neighborhoods, however, the risk of overinvestment is very real. A property may be fitted with luxury materials, but the market will not pay more than the average price appropriate for the location. The quality of the location thus sets the upper limit for the increase in value that a luxury renovation can achieve. That is why assessing the location is always the first step before making a major investment.

The initial condition of the property is also crucial for profitability. An old Wilhelminian-style apartment with high ceilings, original parquet flooring, and preserved stucco ornamentation can often be transformed into a premium property with less effort than a typical prefabricated building. The condition of the building plays a major role in determining whether the investment in a luxury renovation is worthwhile.

Planning and Selection of Tradespeople

A luxury renovation requires experienced planners and specialized tradespeople. We recommend involving an interior designer or general planner who will handle overall coordination and align materials, tradespeople, and the schedule. In the Nuremberg area, there are a number of companies that specialize in high-quality renovations-from the restoration of historic stucco elements to modern smart-home integration.

Budgeting and scheduling are particularly challenging in luxury renovations: Unexpected discoveries behind old walls, long lead times for specialty materials, and labor shortages among specialized trades can significantly delay projects and drive up costs. Based on experience, you should plan for a 20-30% buffer for a comprehensive luxury renovation.

Coordinating the various trades is particularly critical in a luxury renovation. Delays in one area-such as the delivery of special tiles from Italy or custom-made doors from a small carpentry shop-can push back the entire construction phase. Tight project management with clear milestones and a single point of contact is therefore not a luxury, but a necessity.

Luxury Renovation and Historic Preservation

The luxury renovation of historic buildings is particularly appealing but also challenging. Nuremberg boasts a rich inventory of historic buildings-Wilhelminian-style villas, Art Nouveau houses, Baroque townhouses-whose character can be preserved through high-quality renovation while simultaneously being adapted for contemporary living. Close coordination with the local historic preservation authority is mandatory in this process.

The status as a historic landmark also offers tax incentives: Increased depreciation rates under Sections 7i and 7h of the German Income Tax Act (EStG) make historic preservation renovations particularly attractive for investors in the high-end market segment. Anyone who purchases a listed property, renovates it luxuriously, and then rents it out or uses it themselves can take advantage of significant tax benefits that make the overall investment considerably more cost-effective.

Practical Tip for Owners in Nuremberg and Franconia

Before investing in a luxury renovation, we recommend a thorough market analysis: What prices are actually being achieved for comparable renovated properties in your location? What is the buyer potential in your neighborhood? We would be happy to prepare a comparative value analysis for you and show which renovation measures will yield the highest return on investment in your specific location. In some neighborhoods of Nuremberg, a complete luxury renovation is worthwhile; in others, a solid standard renovation makes more economic sense.

Frequently Asked Questions

How much does a luxury renovation cost per square meter in Nuremberg?

Costs vary significantly depending on the condition of the property, the scope of the work, and the choice of materials. As a guideline: A high-end complete renovation starts at approximately €1,000 per square meter of living space; a full luxury renovation with premium materials can cost €1,800-3,000 per square meter or more.

Can I significantly increase the rent after a luxury renovation?

Only to a limited extent. According to Section 559 of the German Civil Code (BGB), a rent increase following modernization may only be based on modernization measures that are actually apportionable-luxury modernizations (far above-average amenities) are not apportionable. However, when re-leasing, a higher new rent in line with market rates may be agreed upon.

Is a luxury renovation also possible in a historic preservation zone?

Yes, but with restrictions. Listed buildings-of which there are many in Nuremberg’s Old Town-can be magnificently and high-quality renovated, provided that the exterior appearance and essential historical elements are preserved. Coordination with the Lower Monument Protection Authority of the City of Nuremberg is mandatory. The status as a historic monument also offers tax advantages: Increased depreciation rates (§§ 7i, 7h EStG) make historic preservation renovations particularly attractive for investors.

How do I find suitable contractors for a luxury renovation in Nuremberg?

Recommendations from architects and interior designers in the region are often the most reliable source. Alternatively, guilds and chambers of crafts (Chamber of Crafts of Middle Franconia) can provide members with relevant references. Look for verifiable reference projects and ask owners of previous renovation projects directly about their experience.

How long does a luxury renovation take?

The timeframe depends on the scope of the work. Based on experience, a complete gut renovation of a 150-square-meter luxury apartment takes 6 to 18 months when special materials, demolition work, and complex trades such as stucco restoration or custom-made fixtures are factored in. Plan for generous buffers-delays due to special materials or capacity bottlenecks among specialized tradespeople are the rule, not the exception.

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