This diploma thesis strives to introduce residential real estate as a relatively safe and conservative form of investment. It suggests the importance of real estate properties as well as the impacts and influences in the market of real estate. Nevertheless possible risks and threats that might arise when considering investment into residential real estate are not omitted in this thesis. In order to capture a real-life situation of plot ownership that many people can suddenly are forced to face, this thesis proposes various solutions in the form of scenarios regarding plot utilization. Further analysis deals with development process of a residential property; subsequently investment analysis and property appraisals are derived and thoroughly analyzed.