How much value does a garden room add?

Is a garden room a good investment?

A garden room is a detached outbuilding often designed to extend functional indoor living space into the backyard. So, if you’re considering investing in a prefab garden room, it’s probably because you’re looking to add room and value to your life. 

However, you’re likely wondering, “Is a garden room a good investment?” 

The simple answer is yes.

A well-designed, good-quality garden room can be a significant asset that delivers on both fronts. It boosts your home’s resale value and appeal while enhancing your daily living experience.

A garden room is a cost-effective way to add extra space to your home so most homeowners can be confident that it will pay for itself from the moment it’s installed – certainly in lifestyle enhancement!  But what about increasing property value and how much ROI can you expect from a garden room?  

It’s impossible to give a definitive answer.

You’ll find some sources say that a garden room can increase the value of your property by 5%-15%. But, in reality, just how much value can be added to your home with a garden room depends on several key factors.

Keep these in mind to ensure you get the best possible return on your garden room investment. For expert advice on your specific property and plans, it’s a good idea to consult with a real estate professional in your area. 

The Melwood Beauty Room – A significant ROI

Beautician, Kerry-Anne, purchased a Verandah/Porch “hybrid” for her property several years ago for use as a beauty room to meet with her clients. This stylish backyard addition didn’t just elevate her business operations – it made a significant impact on her property value and delivered an impressive return on investment.

When she and her husband purchased their property in July 2017, they paid $1,103,000. Shortly after, in February 2018, they invested in their Melwood; this addition being the main change to their home before they went on to sell it in November 2021.

The result?

Their home sold for a staggering $2,110,000 – over a million dollars more than their purchase price less than four years prior. While factors like an increasing property market likely played a role, Kerry-Anne’s inspired choice to add the multifunctional lifestyle extension certainly contributed to this impressive resale value and the buyer appeal that fetched a premium price.

1. Quality matters most

Above all else, the quality of your garden room will have the biggest impact on how much value it adds to your property. A premium garden room constructed with durable, high-end materials, precision-engineered design, and exceptional craftsmanship has a greater ROI potential when it comes to increasing your home’s market value.

On the other hand, a poorly made garden room that feels more like a glorified shed than a true living space could detract from your home’s perceived value and desirability. Buyers are looking for functional extra living spaces, not ramshackle add-ons and high-maintenance headaches. 

So, when selecting your garden room, don’t cut corners in pursuit of the lowest price tag. Invest in a design built to last for decades from a reputable company known for quality construction. Details like carefully selected premium materials, stylish cladding, superior design features, low ongoing maintenance and year-round comfort should be prioritised.

2. The “Wow” factor advantage

In addition to quality, a garden room’s aesthetic appeal and overall design plays a significant role in how much it increases your property value. An eye-catching, magazine-worthy garden retreat triggers that coveted “wow” response from potential buyers and sets your listing apart from similar homes.

Imagine a listing with beautiful photographs showcasing an elegant exterior entertaining area or serene personal retreat tucked away in the backyard oasis. This helps homes stand out in buyers’ minds and justifies premium pricing. 

3. Intelligent lifestyle design 

Garden rooms that are intelligently designed to meet modern lifestyle needs and multi-purpose living trends will generally see a higher return on investment. They directly contribute to a home’s functional square footage and livable space – something buyers place a high premium on compared to homes without this bonus amenity. You’re essentially adding an extra room (or rooms, depending on the design) ready-made for converting into whatever use aligns with a potential buyer’s interests and needs. Versatile spaces that can be used as a home office, personal gym/yoga studio, guest suite, teenagers’ hangouts, art studio and more, add immense functional value and have increased appeal. 

4. Local market conditions

Like any home improvement, the value a garden room adds will also depend on your specific local real estate market. You might see the biggest upticks in property value in markets where detached home offices are in high demand or in a highly populated or condensed area where inside and outside space is at a premium. Researching recent comparable sales and chatting with a real estate professional in your area can give you an accurate estimate customised to your neighbourhood. 

5. Trust is a must

Given there are costs involved in adding detached living space additions like garden rooms, it’s critical that you partner with a proven company that specialises in quality prefab designs. Look for companies with many years of experience and a portfolio of past projects that you can review. This is a great way to gauge the quantity and quality of a company’s past projects and gain an accurate representation of the customer experience. If there are few or no case studies of past projects available, you might choose to exercise a little caution.

With the rise of garden rooms’ popularity, there has been an increase in new garden room suppliers in Australia. Unproven providers can run too high a risk of compromising the elements that make garden rooms such valuable assets. And a lack of experience could turn a relatively simple process into a costly, lengthy, stressful ordeal.

The bottom line 

At the end of the day, a prefab garden room done right can be one of the savviest investments you make in boosting your home’s appeal, functionality, and bottom-line resale value. By prioritising quality construction, intelligent lifestyle-focused design, and visual aesthetics, you can create an awe-inspiring backyard oasis that provides daily enjoyment for you while drastically increasing what buyers are willing to pay.

So, if you’re simultaneously looking to increase your property’s value and elevate your living experience, don’t overlook the potential of a premium prefab garden room tailored to your home and personal needs. With careful planning, it could be the feature that transforms your home into a must-have property when it comes time to sell.