Real estate funds’ enthusiasm still growing
Real estate funds are becoming more and more established in the Czech Republic. Last year, according to estimates by the Association of Rental Housing, institutional investors acquired over 1,500 flats, this year they are targeting 2,000. Nowadays real estate funds have been operating on the Czech market for three years and developers confirm that interest in buying all or part of their rental housing projects is rising.
In 2021, the Czech Mint Group bought over 200 apartments in Prague and over 100 in Pilsen. Through analyst Erik Janovský, they have stated that they are still searching in the market to buy another 500 flats by the end of the year. In the same year, the largest rental housing operator in the Czech Republic, Heimstaden, acquired three new apartment building projects: 226 flats in Pilsen, 169 flats in Prague, and 182 flats in Ostrava. Kateřina Piechowicz, the company’s spokeswoman, declared that enthusiasm for the acquisition of new real estate projects continues and that further steps will be related to the development of the economic situation in the Czech Republic.
On the other hand, some companies like Central Group stick to selling directly to customers. They are giving up the opportunity to sell to funds, as they expect their properties to be sold quickly, said Dušan Kunovský head of Central Group. These data reflect consumer behaviour in fact, in the Czech Republic, only about 20 per cent of the population currently lives in rental housing, while in Germany and Austria, this number is more than doubled. However, rental housing is also declining in the Czech Republic due to rising apartment prices, mortgages, and inflation. For this reason, market trends may change in the coming months.
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