NEWS
Apartments in need of renovation? Not a nightmare, but a strategy
Apartments in need of renovation? Not a nightmare, but a strategy
The idea of buying an apartment that is not immediately ready to move into may seem risky at first glance. However, at a time when the availability of home ownership is deteriorating, necessity is becoming a strategy. Properties in their original condition or intended for renovation are increasingly finding buyers. And not only among experienced investors, but also among young couples or individuals who want to build their first home from the ground up literally.
According to data from real estate portals, apartments before renovation sell significantly faster than new buildings or units under construction. In the second quarter of this year, they remained on the market for just over a month on average, much shorter than newly completed apartments.
"When there is strong demand on the market and available financing options are limited, buyers often prefer to choose a cheaper apartment that they can renovate to their liking," explains Filip Veselý from MORITZ & BAKER. According to him, renovation can offer a better price/performance ratio, especially when clients coordinate the work themselves or have a personal connection to a specific location.
The average asking price for apartments intended for renovation is around CZK 54,000 per square meter outside Prague, which is roughly CZK 50,000 less than for new buildings. Even in Prague, the price gap, while narrower, still exists — especially for smaller units, where the difference can be as little as five percent.
"Location plays a major role," says Filip Veselý of MORITZ & BAKER. An apartment in need of renovation in a prime area may hold or even increase in value better than a brand-new unit in a less desirable neighborhood, both in terms of rental yield and resale potential.
Apartments awaiting renovation are also attracting end users who want to create a custom home. They often combine their work with the help of professionals to achieve high-quality results at a lower cost.
Investors, too, are watching this segment closely. Renovated apartments in sought-after locations often yield better rental returns than new builds. For many, it’s a smart way to maximize the value of their investment without overpaying upfront.
"We are increasingly seeing clients who approach renovation not only as a financial decision, but also as a way to create a home that reflects their identity," adds Filip Veselý from MORITZ & BAKER. "It’s no longer just about newness — it’s about potential."
