How much value does a garage add? It depends on what you build (and where)

If you’re looking to boost your property’s value, some home improvements deliver a stronger return than others – and a garage conversion is often high on the list. Once seen solely as a space to park the car, the modern garage has evolved. Today’s homeowners are transforming these square metres into utility rooms, fitness studios, workshops, and cleverly concealed storage.

But how much value does a garage add, really? The answer isn’t always clear-cut. Whether you’re still at the stage of considering garage conversion ideas or planning to build a new structure to house your cars, it’s important to consider the key factors – from location and layout to how the space will be used – that determine whether your project will be a smart investment or a costly misstep.

How much value does a garage add to your home?

“A garage can significantly increase a home’s value,” explains Joseph Lane, founder of Mortgage Lane. “But the type of garage, its functionality, and its location are key factors that affect how much value it adds.”

On average, Joseph says, a garage can boost a home’s value by between 5% and 10% – though this figure can vary depending on your location and how practical or versatile the space is. In areas where off-street parking is limited, a garage can become a major selling point. In rural locations, however, where parking is more readily available, the added value may be less pronounced – though it can still add functional appeal for prospective buyers.

Joseph Lane

Property investor, national speaker and finance broker – Joe offers a wealth of knowledge across an array of subjects, specialising in Buy to Let, Bridging and Development finance.

What type of garage adds the most value?

Not all garages are equal when it comes to return on investment. According to Joseph Lane, integral garages – those built into the footprint of the house – are typically the most desirable, both in terms of convenience and resale value. These are followed closely by attached garages, which offer easy access and can often be upgraded or converted more cost-effectively.

“Detached garages, while still valuable, tend to add slightly less value because they require additional land and are less convenient,” Joseph explains. That said, if a detached garage is well designed – with insulation, electricity, and thoughtful finishes – it can still command a strong return.

Kevin Keen, contractor and founder of Keen’s Buildings, reinforces this point: “A finished two-car garage with electricity and insulation tends to bring the highest return. In some cases, we’ve seen garages push a home past appraisal benchmarks that otherwise wouldn’t be met.”

Kevin Keen

Kevin is a certified contractor. He founded Keens Buildings in 1999,  specialising in the prefabrication of portable storage buildings like custom metal garages, sheds and carports.

The benefits of a multifunctional garage

The more versatile your garage, the greater its potential value. It pays to think beyond parking – garages today are often used as gyms, laundry rooms, workshops or even hobby spaces.

"Multifunctional garages, such as those used for utility rooms, or additional storage, tend to be more valuable than standard single-use designs," Joseph Lane explains. "These multifunctional spaces offer greater flexibility and can attract a broader range of buyers."

Even if your garage doesn’t increase the valuation dramatically, a well-finished, insulated space with electricity can improve the home’s overall appeal – and might even be the feature that clinches the sale.

Does location affect how much value a garage adds?

Unsurprisingly, where you live can have a huge impact on how much value a garage adds. In cities and built-up areas, where on-street parking is scarce or permits are required, a private garage can be a serious asset.

“In urban areas, where parking space is scarce, having a garage can add substantial value,” Joseph Lane confirms, “often making it a key selling point. However, the added value may be less significant in rural areas where parking is more readily available.”

Kevin Keen, agrees, adding: "A single-car garage can boost a home’s resale value by around 5–10%, sometimes more in urban areas where parking is limited. In more rural places, it might not translate directly to value, but it adds utility, which buyers still consider. "

How to maximise your return on a garage build

If you plan on converting an existing garage or building one from scratch, there are a few key ways to maximise your return and boost its long-term value.

Even if you’re not planning a conversion right away, it’s worth future-proofing your garage by installing the right infrastructure from the start. Adding electrics, plumbing and proper insulation during the build phase can make any future work far easier and more cost-effective. Wiring in extra sockets and lighting will provide flexibility down the line, while basic plumbing makes it simpler to add a sink, washing machine or small bathroom if needed.

Installing quality garage flooring is another smart upgrade. Durable, low-maintenance options such as epoxy coatings, sealed concrete or interlocking tiles not only look the part but also signal to potential buyers that the space has been well cared for.

Lastly, don’t overlook the importance of a high quality garage door. “It’s important to invest in a high-quality garage door to ensure garage security and to protect valuable items stored within,” say the experts at Hillarys. This is particularly important in garages that house utility rooms, where expensive appliances and/or tools may be stored.

What should you consider before building a garage?

Before you begin pouring concrete or calling in builders, it’s worth weighing up the costs and potential return. If the construction costs outweigh the likely increase in value – or if the garage ends up taking up valuable garden space – it might not be the right move.

“There are times when building a garage may not be a good investment,” Joseph Lane cautions, “particularly if you live in an area where parking is abundant or if the cost of construction outweighs the potential return.”

Garage planning permission, access, and neighbourhood character should also be factored in before committing to any build.

"A well-designed garage can increase your home’s value, but the key is ensuring it meets the needs of your local market and provides added functionality," concludes Joseph Lane, Founder of Mortgage Lane. "Whether integral, attached, or multifunctional, a garage can be a smart investment with careful planning.”