Buying an Entire Building, Renovating It, and Selling Unit by Unit A Realistic Scenario with Numbers — and the Risks Most Investors Miss

The strategy sounds straightforward: buy an entire older building at a “reasonable” price, fully renovate it, and sell the apartments one by one at a much higher price per square meter. On paper, the margin looks attractive. In reality, this model either creates meaningful value or locks capital for years. The difference is not the idea itself. It is how rigorously the numbers are tested — and how honestly the risks are priced in.

REAL ESTATE INVESTMENT

Christos Boubalos - poli.gr

1/23/2026

1. The Building (Working Assumption)

Location: Urban Athens area with demand for primary residences
Year of construction: 1975
Floors: 4
Apartments: 8
Average size: 75 sqm
Total surface: 600 sqm
Condition: Fully outdated

Strategy: Full renovation and resale to end users, not investors.

As explained in “How Professionals Filter Properties Before Looking at Price”, projects like this are not judged by how cheap they are to buy, but by whether the final product can realistically be absorbed by the market.

2. Acquisition Cost — €1,500 / sqm

Item Amount (€)

Purchase price (600 × €1,500) 900,000

Transfer tax (3%) 27,000

Legal & notary costs 15,000

Brokerage fees 18,000

Total acquisition cost 960,000

From the very beginning, capital exposure is significant — something often understated when such projects are marketed as “opportunities.”

3. Renovation Cost — €1,200 / sqm

This is not cosmetic work.
It is a full building upgrade.

CategoryAmount (€)

Apartment renovation (600 × €1,200) 720,000

Common areas & façade 70,000

Mechanical / electrical systems 60,000

Contingency 70,000

Total renovation cost 920,000

As discussed in “The Construction Mistakes That Cannot Be Fixed After Delivery”, contingencies in older buildings are not exceptions — they are structural reality.

4. Total Capital Invested

CategoryAmount (€)Acquisition960,000Renovation920,000Marketing & sales30,000Holding costs (18 months)70,000TOTAL PROJECT COST1,980,000

👉 True cost basis: ~€3,300 per sqm
This is the number that matters — not the €1,500 entry price.

5. Sales Scenario (Moderate, Not Optimistic)

Average selling price: €4,000 / sqm
Sale price per apartment (75 sqm): €300,000

ItemAmount (€)Revenue per apartment300,000Apartments8Total sales revenue2,400,000

6. Financial Outcome

ItemAmount (€)Total revenue2,400,000Total cost1,980,000Gross profit420,000

Return on capital: ~21%
Project duration: ~18–20 months
Annualized return: ~12%

At first glance, the project works.
This is where most investors stop the analysis — and make mistakes.

7. Where Most Projects Actually Break

As explained in “Why Net Yield Is the Only Number That Really Matters”, margins must survive pressure, not just optimism:

Sale price –5% → profit ~€300,000
Construction cost +10% → profit ~€230,000
Sales delayed by 6 months → –€60,000

The project does not collapse — but it loses safety very quickly.

This is the line between an investment and capital fatigue.

How Poli Real Estate Evaluates This Type of Project

At Poli Real Estate, projects of this type move forward only if:

the final cost remains clearly below market value
unit absorption is realistic, not theoretical
and margins remain double-digit after stress testing

If those conditions are not met, the correct decision is not to buy the building.

Conclusion

With a purchase price of €1,500 per sqm and a renovation cost of €1,200 per sqm,
the “buy–renovate–sell unit by unit” strategy can work.

But not without:

strict cost control
a clearly defined end buyer
and an exit strategy in place before signing the acquisition contract

Because in projects like this,
the real risk is not earning less — it is staying in too long.

If you are considering building-level or repositioning investments, submit your investment criteria at the contact button that follows.