How to set apartment prices in a tenement building conversion
Published 4 November 2026
Determine apartment prices in a converted building from the market value of completed units, then deduct costs and risks associated with the current building phase. The pricing structure is therefore not a single figure but a progressively changing table linked to preparation stage, construction progress, and demand. The typical value difference between selling units individually and selling the entire building as one lot is +20–40%, though the precise figure will be determined only after feasibility analysis.
Summary
- Pricing derives from finished unit values, minus costs, time, and phase-specific risks.
- Unit price changes by phase: before permit and before completion work is lower than completed units.
- Absorption period determines how many units the market can absorb in a given timeframe at a given price.
- Individual unit sales typically differ from selling the entire building by +20–40%; feasibility will confirm the exact figure.
- Confirm prices before entering the next phase, in line with the sales gate review.
What determines unit price
The basis of pricing is an estimate of the market value of a completed, legally independent apartment, not the current value of the entire building. All discounts and premiums flow from this figure.
The practical procedure has these steps:
- Find out what comparable apartments with the same layout, size, and condition sell for in the area.
- Adjust the price according to the unit's features: floor, orientation, outdoor space, cellar, condition of utilities.
- Deduct the costs remaining until completion and a reserve for uncertainty.
- Compare the result with the value the building would have if sold as a single lot.
You can verify a rough estimate using our building potential calculator. However, binding documents emerge only as part of a feasibility study.
How construction phase affects pricing
The further a building is from completion, the greater the discount from the finished unit price that buyers will rightfully expect. They bear both waiting time and the risk that plans may change.
| Phase | What buyers see | Impact on price |
|---|---|---|
| Before permit | Plan without certainty | Highest discount, mainly for investors |
| Permit approved, before construction | Permit and work plan | Discount reduces |
| Construction in progress | Visible progress | Price approaches finished unit |
| Completed unit | Apartment ready to move in | Full market price |
Building alterations require approval under the Building Code No. 283/2021 Coll. Price should increase only with a confirmed permit outcome, not merely a plan. The division of the project into three gates (legal, permit, sales gate) provides a framework: you only proceed to the next phase with confirmed figures.
Market absorption time
Pricing must reflect how many units the local market can absorb in a reasonable timeframe, otherwise the sale will drag on and become more expensive.
Absorption period is the time it takes to sell the entire supply at a given price level. With multiple apartments in one building, two risks emerge:
- Too high a price will prolong the sale and increase financing, management, and building operating costs.
- Too low a price will quickly sell off the best units, leaving weak demand for the remaining ones.
It is therefore advisable to bring apartments to market in stages and monitor buyer interest: number of viewings, bookings, and price inquiries. This data helps adjust the pricing structure.
Early-bird discounts vs. later units
The first apartments typically sell at a slight discount because they demonstrate to the market that the project works; later ones sell closer to full price.
Why start with a lower price
- Early sales confirm demand and price level.
- Booked and completed units reduce uncertainty for subsequent buyers.
- Proceeds may help finance the next stage.
Why raise prices for later units
- The building approaches completion and buyer risk decreases.
- Supply shrinks.
- Price reflects demonstrated demand.
Do not apply discounts across the board. They should be limited in number and duration, otherwise they become the permanent price level. The size of the discount cannot be set in general terms; it depends on the location, building condition, and feasibility results.
Selling as one or individual units
Selling units individually is typically more valuable than selling the entire building at once, but requires time, preparation, and incurs its own costs. The typical difference is +20–40%; feasibility will determine the precise figure.
When comparing, do not simply weigh the gross prices. Also include:
- costs of preparation, permits, and building alterations,
- time until completion and sale of the last unit,
- operating and management costs in the interim,
- tax implications under the Income Tax Act No. 586/1992 Coll. (for example, the holding period test and primary residence status); verify details with the Czech Tax Administration or a tax adviser.
Apartment ownership transfers to the buyer only upon registration in the Czech Land Registry (katastr nemovitostí); the cadastral office may not register before 20 days have passed from notice to the owner, as set out in the Cadastral Act No. 256/2013 Coll. Average registration takes about 22 days, which should be factored into payment schedules. We recommend payment via lawyer escrow to ensure security; cash payments are capped at CZK 270,000 per day under the Act on Limiting Cash Payments No. 254/2004 Coll.
Next steps
First prepare the documents that will support your pricing structure, only then publish prices.
- Prepare an extract from the Czech Land Registry (katastr nemovitostí), floor plans, an overview of rental agreements, and technical condition data for the building.
- Check the rough potential using our calculator.
- Familiarize yourself with the process on the How it works page.
- Consider your collaboration model; managing the project under a single agreement is described under End-to-end delivery.
Audit and planning (paid feasibility) deliver results within 6 weeks. Get a non-binding estimate or building assessment via the form below this article.