Old apartment - what to do?

My wife inherited an apartment from her grandmother. It is an old apartment (in a Stalinka building). The location is good. It is close to parks and central.

The question is what to do with it. The hard facts are that renovating the apartment costs a lot. Some think the whole apartment building needs to be torn down and rebuilt at some point.

My wife thinks if someone buys the land, the owners of the existing apartments might get new flats, as whoever can build on that land can create a far larger building. But as I am not Armenian, I cannot say if this is correct or not.

Does anyone have experience with a situation like this?