Garden Room ROI Calculator

Garden Room ROI Calculator

How Much Value Can a Garden Room Add?

Garden rooms provide versatile options to homeowners. Insulated garden rooms are more preferable than property extensions. As home working becomes more frequent, the demand for insulated garden rooms increases.

Homeowners, however, have many queries. One common question is if garden rooms are financially a good idea.

Every property has its own uniqueness close to the nature of insulated garden rooms. Functionally, a garden room provides more flexibility to the property. In addition to the financial and functional benefits, a garden room increases the overall value of the property. A garden room can be used as a home office, studio, gym or even a hobby room.

This guide discusses the most value a garden room can enhance to a property, how to calculate the potential return on investment (ROI), and why a garden room is a great home investment.

Quick Answer: Do Garden Rooms Add Value?

If designed effectively, a garden room has the potential to increase a property’s worth between 3% to 8%. This estimate is based on the following factors:

  • Value of other properties in the area
  • build quality
  • Size of the garden room
  • The location and demand of houses in the area

Aside from the financial benefits, garden rooms allow for immense lifestyle and psychological benefits. This is a key reason for the increase in popularity among UK homeowners.

Typical Increase in Property Value

Property experts and researchers in the area of residential improvement market garden rooms alongside specific design and construction qualities of the garden room that add to the bolstering of property value.

Typical value increases appear to vary with the type of property.

Property TypeEstimated Value Increase
Detached5–8%
Semi-detached4–7%
Terraced3–6%

Take a detached home for instance. This property type will most likely experience a larger value increase because it typically has larger gardens that can accommodate more additional structures.

With that being said, actual value increases will depend on the following factors:

  • The quality of construction of the garden room
  • The quality of insulation
  • The ease with which the garden room blends with and complements the main house design
  • The demand for additional workspace locally

Houses with a high Remote Work Value (RWV) in demand for Home Offices (HOMOs) will experience greater value increases.

Example Garden Room ROI Calculation

Let’s consider a simple example to determine the ROI of a garden room.

Sample Scenario

Garden Room CostProperty ValueEstimated Increase
£20,000£400,000£12,000–£24,000
£30,000£600,000£24,000–£48,000
£40,000£800,000£32,000–£64,000

Expected Return of Investment

With this data, break-even ROI becomes possible, or even to return positively since the garden room installation cost and the increase of estimated property value are the same, and the homeowner would still get a new living space

 ROI of Garden Rooms Data Set

The table below shows the potential increases in property value to the cost of installing garden rooms.

SizeTypical Use
3m × 2.5mHome office
3m × 3mStudio
4m × 3mOffice or gym
5m × 4mMulti-purpose room

With the potential increase in property value, a garden room installation cost can be offset. The examples above show the financial return of a garden room can be lower, but the financial return is only a small part of the overall value

Many homeowners appreciate the lifestyle value of the additional space the garden room provides.

More Than Just a Property Value Increase

Every garden room will add value to a property, but there are endless benefits for homeowners.

Here are some benefits that can be associated with having garden rooms:

  • Potential for greater productivity while working remotely
  • More usable space in the home
  • Improvement in the balance of work and personal life
  • Adaptable space for various different activities
  • Distraction-free work environment

Due to the location of garden rooms, home and business activities are separated. You can even use them for hobbies, yoga, or fitness once the workday ends.

*Expected Returns on Investment for Different Garden Room Sizes

Different garden room sizes will affect your investment and the future functionality of the room.

Here are some examples of garden rooms and their uses:

SizeTypical Use
3m × 2.5mHome office
3m × 3mStudio or workspace
4m × 3mOffice or gym
5m × 4mMulti-purpose room

For smaller garden rooms, the most common design is for the space to be an office, while for larger rooms, the design becomes more flexible.

For instance, a garden room with 5m x 4m dimensions can be a work area, fitness area, and even a place for creative activities.

Due to the potential uses, larger garden rooms are likely to be more fruitful when it comes to benefits for the owners and attract more buyers for the property.

The increased remote jobs have altered the use of homes, more garden rooms have been built.

With remote work being a popular practice in today’s society, professionals are need of garden rooms in their homes, as they allow for a separate space to work, away from distractions from the home, such as family members, radios, and televisions. 

 Because they are simple, detached structures, most homeowners see the value in them, and they are a large home improvement trend spanning throughout the UK.

With Garden Rooms, the complete space can be dedicated to work, but the space is not limited to that. It can also be turned into an:

  • Extra guest space
  • Hobby space
  • Exercise space
  • Entertainment space

A full garden room can provide additional livable space, but still allow the owner to keep the structure of the home totaly intact, and the garden room is built completely separate from the existing structure.

For most homeowners, the quick turnaround time, adaptability, and overall results the garden rooms provide is very appealing compared to the time consuming building extensions that would provide the same end results.

Pecasa Garden Rooms Pecasa offers garden rooms throughout the entirety of the UK and North London. Their speciality is the garden rooms that are fully insulated, allowing for comfortable, year round use. These custom buildings are designed to create year-round useable spaces that are comfortable and functional.

Standard specifications include:

  • Insulated wall systems
  • Composite or timber exterior cladding
  • EPDM rubber roofing
  • Double-glazed aluminium doors and windows

These features are designed to keep the garden room functional and contemporary, regardless of the weather.

Thanks to solid construction and careful design, a garden room can be one of the most flexible and precious assets to a property.

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