Pergola Return on Investment: Will a Pergola Add Value To My Home?

Sometimes home improvements are a necessity, other times they’re passion projects. But if you’re looking to add value to your home, the question becomes: what kind of return on investment (ROI) will you get? Let’s look at pergolas and how much value they can add.

Why a pergola?

A pergola creates a beautiful outdoor living space and a relaxing garden retreat.

Adding an oak pergola is an attractive way to create a garden gateway or outdoor lounge area. Pergolas extend your usable living space and can include solid roofs or partial sides. They’re also among the more affordable hard landscaping additions.

If you’re thinking about ROI, you’ll need to look carefully at materials, installation costs and features.

Basic costs of the pergola

The biggest cost factor is the material you choose. Traditional woods like oak or cedar offer excellent value and can be part of DIY builds to save labour. Exotic woods like teak can increase costs significantly—up to two-thirds more in materials and 25–50% more in labour.

Fibreglass and aluminium pergolas are also options. They’re practical but lack the natural appeal of timber, with costs ranging from lower than oak to higher than teak depending on size and style.

Extra costs to consider

Beyond materials and labour, you may need a solid surface such as paving or concrete. This adds costs for foundations, materials and labour.

Installing electricity for lighting or heaters also increases overall cost. Above-ground wiring is cheaper but more visible; underground wiring is tidier but more expensive.

Will a pergola appeal?

Return on investment depends partly on your location. Pergolas may be less appealing in exposed, windy areas—but in sheltered or suburban gardens they’re highly desirable, offering extended seasonal outdoor use.

Improving home value

An oak pergola combined with a paved base can add value, particularly to larger homes where buyers expect additional lifestyle features. If increasing value is your goal, research your local market before committing.