- Hans Weber
- July 26, 2024
Investing in real estate also attracts as a protection against inflation
Real estate pays as a stable and secured investment. Crowdberry’s internal survey shows that it is a popular investment instrument, sought by more than 50% of Crowdberry investors. Nowadays, when not only due to the geopolitical situation, inflation is growing by double digits, the importance of real estate investment has increased even more, precisely because of the stability and material security. In addition, the market is expected to revalue due to these pressures, which means more opportunities for investing to catch the right moment before their value rises.
Crowdberry’s investment platform allows private investors to co-own companies and real estate. Since its inception, more than CZK 1 billion has been invested through it and the funds it has set up. Roughly a quarter has gone into real estate and development projects, and these opportunities are now increasing. Given the current market situation, the real estate segment is expected to attract more investors. However, real estate rarely offers returns in excess of 10%, which are usually achieved only by developers and large institutional funds.
But Crowdberry has been changing the culture of investing in Slovakia for more than 5 years and in the last 2 years in the Czech Republic, allowing private investors to participate in the profits from the success of companies and development projects. In the case of new construction, it allows investment in the early stages in land acquisitions or special purpose vehicles before the actual construction begins.
However, apart from the industrial sector and the retail park, other opportunities have aroused more interest among investors. Currently, Arcona Capital is applying for investment on the platform, which wants to implement the fourth phase of residential development in Úvaly. Private investors thus have the opportunity to co-own the project together with an international fund that manages assets worth almost CZK 10 billion. And also alongside the real estate fund CB Property Investors, founded by Crowdberry, which is entering the investment as the main investor. The development, in a quiet area on the outskirts of Prague, anticipates a trend where the middle class will continue to move out of the centre of Prague in search of their own.
CB Property Investors Fund, which creates a mixed portfolio and, in the spirit of Crowdberry’s philosophy, offers qualified investors the opportunity to share in the profits as they create value.
The recent acquisition of a retirement home building called Good Times will offer a combination of a special needs home for seniors with Alzheimer’s or other mental health conditions and nursing beds for long-term care. There will be 167 beds in total. Investors will also be able to invest in the Ivančice home during the autumn via the Crowdberry platform.
Investments in fast-growing companies with the potential for global expansion offer interesting investment opportunities.
The importance of private capital increases especially in times of crisis, when the availability of standard financial resources is limited.
Together with investment funds and the platform, Crowdberry has a total of more than 6 companies under management, generating revenues of around CZK 4 billion per year and employing more than 1,200 people. It is also actively preparing for the implementation of ESCP 2020, a European regulation that will standardise direct crowdinvesting and create a framework for crowdinvesting.
According to the portal nemovitostni-fondy.cz, CB Property Investors is the only real estate fund of qualified investors that has achieved a higher return than the current inflation rate. At the same time, in the official comparison of the first six months of this year, the website named CB Property Investors as the most profitable fund in this segment.
“In the first half of the year, only one fund managed to beat inflation: CB Property Investors – a relatively new fund of qualified investors, which only this year made its first acquisition (a senior house in Ivančice),” says Jan Traxler, a private investment advisor and expert guarantor of the portal nemovitostni-fondy.cz, which monitors the development of thirty real estate funds focusing on the management and rental of real estate operating in the Czech Republic. The return of our fund for the first half of this year was 14.27% and for the last twelve months 13.9%. The average annual return of real estate funds in the Czech Republic in the period 2017-2021 was 6.75%. It reached its highest value in 2021 (10.64%).
JK
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