This thesis deals with the impact of spatial implementation conditions on the effectiveness of investing in building a residential house in the Municipality of Prevalje. It looks at data on advertised and sold residential houses, and vacant building lots. Basic statistics are calculated. The costs of building a new residential house are compared with the estimated market value of the appraised residential house in order to establish the rationality of investing in building. To discuss the influence spatial implementation conditions have on the effectiveness of investing, we examined how different ratios between the lay-out of the building and the area of the building plot, and different factors of the use of land affect the costs of building a residential house. We have established that spatial implementation conditions have very little influence on the effectiveness of investing in building a residential house. In the Municipality of Prevalje, such investments would not be rational, seeing that the estimated market value of a residential house is much lower than the estimated costs of building a new residential house
