Guide · Change of use
Change of use: turning commercial premises into a home.
A complete guide: how to turn commercial premises into a home — change of use, requirements, the cost of the works, legality and more. Click for details.
Ask about my caseChanging the use of commercial premises to residential is an increasingly common practice in the Spanish property market. The process means turning a commercial or industrial unit into a habitable home, and it can work out very well for owners and buyers of this kind of property.
(read on for everything you need to know)
Key points for converting commercial premises into a home
In Spain, the change of use from commercial premises to housing is governed by rules that are specific to, and vary between, each municipality and each autonomous community. It is important to know the local regulations before starting any conversion project.
One of the main reasons behind a change of use is the high return this kind of property can deliver, especially in urban areas with strong housing demand. It is also a solution for premises that have become obsolete or lost their original purpose.
That said, converting premises into a home can be a complicated and costly process, requiring permits, licences and proper planning. It is important to work with professionals who specialise in the field, such as architects and qualified technicians, to guarantee the safety and quality of the project.
Can commercial premises be turned into a home?
The conversion means turning a commercial or industrial unit into a habitable home, and it is fair to ask whether the practice is entirely legal.
The answer is yes, but with conditions. In Spain, the change of use from premises to housing is governed by rules specific to each municipality and autonomous community. It is important to know the local regulations before starting any conversion project.
Bear in mind that not all premises can become homes. The rules usually set requirements as to floor area, ceiling height, ventilation, daylight and access, among other things. You need to be sure the unit meets the requirements in force before it can be legally converted into a home.
You must also obtain the corresponding permits and licences before starting any conversion work. These permits are usually granted by the town hall of the municipality where the premises are located, and can vary with local rules.
Is converting premises into a home profitable? Is it worth it?
The idea of turning commercial premises into a home has gained ground in recent years, as it can be an attractive answer for people looking for an affordable home in a central location. But is it profitable? Is the change of use worth it? Here we look at what really decides that.
First and foremost, carrying out a change of use from premises to housing requires a licence from the relevant town hall. It is also important to check that the unit meets the necessary requirements.
Once the licence is in hand, the next step is fitting out the premises for use as a home. That can be expensive, as every service has to be installed: plumbing, electrics and heating. Adaptation works may also be needed, such as building a bathroom and fitting a kitchen.
Converting premises into a home can make good economic sense, as the price of a commercial unit is usually lower than that of a home in the same area. And because the resulting home sits in a central location, it can command a high rent if you decide to let it.
At Kairós we offer free advice with no obligation.
We are an architecture studio specialising in renovations and changes of use in Málaga. Get in touch to arrange a call, or write to us directly by email.
Advantages and disadvantages of the conversion
Changing the use of premises to housing can be an attractive option for anyone after a central, affordable home. The decision does, however, carry advantages and disadvantages worth weighing up.
Advantages
- Price: commercial premises usually cost less than a home in the same area, which can make the whole transformation more affordable.
- Location: premises tend to sit in central areas, so the resulting home is well located too.
- Versatility: because the space is open-plan to begin with, the design and layout of the home can be shaped around the owner's needs and taste.
Disadvantages
- Costs: the transformation can be expensive, as every service has to be installed — plumbing, electrics and heating. Adaptation works may also be needed, such as building a bathroom and fitting a kitchen.
- Regulations: a licence from the relevant town hall is essential, and the premises must be checked against the habitability requirements, such as adequate daylight and ventilation.
- Constraints: because it started life as a commercial unit, there may be limits on the size and layout of the home, which can leave it less spacious than a conventional one.
Legality, building code and local regulations for a change of use
A change of use from premises to housing carries a set of legal requirements that have to be met to guarantee the habitability and safety of the resulting home. Those requirements are set out in local regulations and in the Spanish Technical Building Code.
Local regulations: these set the specific requirements to be met in order to obtain the change-of-use licence. They vary from one municipality to another, so it is important to consult the relevant local rules to know what applies in each case.
Technical Building Code: the Code sets the technical requirements to be met in order to guarantee the habitability and safety of the resulting home. Among them are minimum room areas, daylight and adequate sound insulation.
Legality: it is worth noting that, beyond local regulations and the Technical Building Code, other legal requirements apply too, such as fire prevention rules and accessibility regulations.
Conditions the change of use must satisfy
Turning a commercial unit into a home means meeting a set of conditions that guarantee the habitability and safety of the resulting home. Those conditions include complying with local regulations and the Technical Building Code, along with other legal requirements such as fire prevention and accessibility rules.
It is also important to make sure the resulting home meets the minimum area required for each room.
To satisfy all of this and make sure the change of use is done properly, it is advisable to take advice from professionals in the field. They can set out the specific requirements that apply in each case and help with the paperwork needed to obtain the licence.
What the premises must meet to become a home
To convert premises into a home, certain requirements have to be met so that the new dwelling reaches the necessary standards of quality and safety.
- A minimum ceiling height of 2.5 metres for the space to be habitable.
- A minimum floor area of 38 square metres, including a sleeping area, a kitchen, a bathroom and a living room.
- An adequate ventilation system.
- Thermal and acoustic insulation meeting local requirements.
- Plumbing and electrical installations that comply with current regulations.
It is essential to bear in mind that the legality of a change of use from premises to housing depends on local regulations, so you must be sure that every condition and requirement set by the competent authorities is met.
What can make a change of use impossible
Turning premises into a home can be appealing, but several factors may make the change of use impossible — which is worth knowing before you buy.
- Local regulations: they may rule out a change of use for certain kinds of premises.
- Condition of the building: if the building does not meet habitability standards, substantial refurbishment may be needed to bring it up to the conditions a home requires, which can be costly and complex.
- Location of the premises: in a commercial or industrial area, the unit may not meet the conditions a home needs, in terms of noise levels or air quality.
The characteristics of the unit itself matter a great deal. Without enough space or natural light, it can be difficult to adapt to the conditions a home requires.
Take advice from professionals who know the subject — architects, lawyers or property managers — who can guide the process and make sure every legal and technical requirement for the change of use is met.
Thinking about converting premises into a home?
Kairós is an architecture studio offering a complete service to turn your commercial premises into a home in Málaga.
How to convert premises into a home, step by step
Converting premises into a home is an increasingly popular option for anyone looking to add living space in urban areas where space is scarce. Doing so means following an established process.
Here is that process, step by step:
- Check whether the premises are eligible for a change of use and apply to the town hall for the corresponding licence.
- Complete the paperwork required to obtain the building licence.
- Carry out the works needed to adapt the premises into a home.
- Obtain the habitation certificate and complete the paperwork to connect the services (water, electricity, gas).
- Register the change of use at the Land Registry.
Bear in mind that every town hall has its own rules and requirements, so it is essential to find out beforehand and to have specialist technical advice in order to see the process through successfully.
Frequently asked questions
What is a change of use?
A change of use means altering the use of a property or unit to suit a new function, such as turning commercial premises into a home.
Which law or building code governs a change of use?
The Spanish Technical Building Code (CTE) and each municipality's planning rules govern the change of use of a property.
What is a habitation certificate?
A habitation certificate (cédula de habitabilidad) is the document confirming that a home meets the conditions of habitability and sanitation required for it to be lived in.
How long can the legal procedures for a change of use take?
The time the legal procedures take for a change of use from premises to housing varies with the municipality and the complexity of the project. As a rule it ranges from several months to a year.
Do I need an architect for the change-of-use procedure?
Yes. A technical architect or an architect must be involved to draw up the project and direct the works.
At Kairós we have experience of changes of use from commercial premises to housing in Málaga and Madrid, so do get in touch.
Is a project required to apply for the change of use?
Yes. A technical project must be submitted setting out the works needed to adapt the property or unit to its new function.
At Kairós we have already delivered renovation projects for commercial premises in Málaga; get in touch to work with us.
Do I need permission from the owners' association?
Yes. Authorisation must be sought from the owners' association for the change of use from commercial premises to housing, as it can affect the building and its communal services.
In short, a change of use from premises to housing involves a series of legal procedures and permits. It is important to have an architect involved and to submit a technical project that complies with the regulations in force.
How much does a change-of-use licence cost?
The cost of a change-of-use licence varies with the kind of unit being turned into a home and with the local rules that apply in each municipality. In general, you need to account for the fees of the professionals involved — architects, technical architects or specialist technicians — as well as the corresponding administrative charges. It is also important to allow for the additional costs that can arise along the way, such as the works or adaptations needed to comply with the regulations, the cost of activity licences or the connection of services.
We will explain the procedures involved and give you an estimate, with no obligation.
Kairós is an architecture studio offering a complete service to turn your commercial premises into a home in Málaga.
Want to know whether your premises can become a home?
Send us the cadastral reference or the address and we will tell you whether the change of use is viable before you invest anything.