It was reported in the Toronto Star recently that the non-profit personal finance web site GetSmarterAboutMoney.ca offers five types of renovation that add value to a home:
•Investments in more efficient use of energy (60 per cent recovery rate)
•New or improved kitchens and bathrooms (75-100 per cent recovery rate)
•Low-cost improvements — painting, wallpaper, etc. (50-100 per cent recovery rate)
•New windows or doors (50-100 per cent recovery rate)
•Basement renovation (50-75 per cent recovery rate)
The Appraisal Institute of Canada says renovations to the bathroom and kitchen offer the best value with a recovery rate of 75 to 100 per cent of the amount spent. The recovery rate is the likely increase a renovation will have to a home’s resale value. So, a $5,000 renovation that increases a home’s value by $3,500 has a recovery rate of 70 per cent.
EiD would be interested to know if there is any comparable work in Europe or elsewhere.

I’d say the recovery rate for energy efficiency related renovations are fairly underestimated; given the positive impact on the operational cost over the life time of a house (even more with high energy inflation rates). See also this article on Leonardo ENERGY about The impact of energy-saving installations in European homes on the life cycle cost (http://bit.ly/en-saving).
Any idea how those recovery rates are estimated? Are they a reflection of perception (willingness to pay a higher price for the property) or real statistics on effective real estate sales transactions?
At European Copper Institute, we conducted a study (based on interviews with real estate agents across Europe) on the perceived value regarding electrical functionalities. From the conclusions, I quote:
“Some features however are recognized having a „real“ value and can lead to a premium:
1) Highest premium for energy saving systems (Solar boiler, heat pump, PV)
2) Safety systems (Video entry, alarm system)
3) Comfort systems (electrical blinds/ shutters and automatic garage/ gate opener)”