Housing is the fundamental pillar of modern society. Demand for rental housing is increasing exponentially due to the shortage of new residential units on the market, rising prices in popular localities, growing mortgage rates, and new mortgage loan restrictions.
The situation in the Czech Republic is similar to that in other European metropolises, such as Vienna and Berlin, where the number of tenants is higher than the number of people who own their own dwelling.
There is an ongoing demand for rental housing, and income from this segment is to a large extent resistant to economic recessions and market slowdowns.
Another factor apart from rental income, which ranges from 6 to 10% ROI in our ventures, is the increased value of real estate, which amounts to 2-5% p.a.
Our portfolio features a balanced combination of stable localities, which include Prague, Brno and developing regions with potential for growth and stable income. Residential real estate is a highly liquid asset, and our portfolio is strategically diversified across numerous localities. All localities are selected based on a detailed analysis of financial indicators pertaining to a given locality, thorough research, and partnerships with major employers and local partners.
An integral part of our services is modern property management, which relies on experience gained in the management of large portfolios in various countries and which allows us to make regular investments in renovation and to ensure maximum operating efficiency. Thanks to an advanced tenant selection system and premium tenant support services, tenant fluctuation in our properties is minimal.
The change in numbers of issued construction permits 2008 - 2018
Source: ČSÚ, https//www.czso.cz/csu/czso/bvz_cr,
Tab. 8 Number and approximate value of building permits in regions of the Czech Republic
The Czech Republic is behind in rental housing compared to western Europe
*data from 2018 (Source: CeMap)