Strategy · 30 July 2026 · 7 min read
Prague apartment buildings: sell as-is or renovate first?
Owners often consider improving their apartment building before selling. Intuition suggests that a renovated building will fetch a higher price. However, the economics of investment properties differ from those of individual flats.
Investors often prefer to renovate themselves
Value-add investors and developers buy apartment buildings precisely for the opportunity to redevelop them according to their own plans. Renovations carried out by the owner may not fit those plans, so investors may be unwilling to pay for them.
When investment before a sale pays off
- minor repairs that address obvious defects and risks, such as leaks or serious disrepair,
- bringing inspection reports and documentation up to date,
- preparing vacant flats for letting at market rents,
- measures that increase net income quickly and demonstrably.
When it does not pay off
- extensive renovations without a clear return on investment,
- investment that delays the sale by a year or more,
- alterations that limit development potential, such as an unsuitable loft conversion,
- projects requiring permits where the outcome is uncertain.
An alternative: sell with the development groundwork in place
It is often better to invest in preparation rather than construction: a feasibility study for adding extra storeys, preliminary consultations with the authorities or a technical audit. These assessments cost little compared with construction, but substantially reduce the developer's risk, making them willing to pay more.
Frequently asked questions
Should I repair the façade before selling?
It depends on its condition and the type of investors. If it is in a dangerous state of disrepair, yes. Otherwise, it is often better to reflect its condition in the price.
Can you help calculate the return on repairs?
Yes. We compare the building's value before and after the investment from the perspective of different types of investors.
Authors: Maria Kopřivová, Michal Kopřiva, Pura Vida Property Advisory. Published 30 July 2026. This article is for information only and does not replace legal or tax advice.
