Apartment prices are rising, rents are soaring, and many people think: “Too bad I don’t have a few million for an investment apartment.”

Good news? You can invest in real estate even without a mortgage, worries, or millions in savings — through real estate funds.

What Is a Real Estate Fund?

Imagine that instead of buying one apartment, you invest your money in a fund that owns an entire portfolio of buildings — from office centers to residential complexes.
You don’t own a specific property but rather shares in a fund managed by professionals.

A real estate fund works similarly to co-ownership.
Rental income and property appreciation flow into the fund. It functions as if you were collecting the rent yourself — except you don’t have to look for tenants, deal with repairs, or pay property taxes.

Main Advantages of Real Estate Funds

1. Low Entry Investment
While buying an apartment requires millions, you can join a real estate fund with just a few hundred crowns (for example, CZK 500 ≈ €20) per month.
This allows even beginners to start building wealth.

2. Passive Income Without Hassle
A professional team handles property selection, rent management, and maintenance.
You simply watch your investment grow — with no personal effort required.

3. Diversification and Lower Risk
A fund typically doesn’t rely on a single building. It owns multiple projects in various locations, often across several countries.
This spreads the risk — if one property underperforms, others balance it out.

4. Protection Against Inflation and Tax Benefits
Property values and rents tend to rise with inflation. That means the value of your investment usually doesn’t decline even when inflation erodes purchasing power.
Moreover, after holding the investment for three years, the fund’s profit may be tax-exempt, similar to other investment instruments.

How It Works in Practice

Imagine Mr. Peter. Every month he invests CZK 1,000 (≈ €40) in a real estate fund that owns office buildings in Prague, Bratislava, and Warsaw.
The fund collects rent from companies, pays operating expenses, and distributes the remaining profit among investors.
Peter thus earns a stable income from rent — without dealing with a single tenant problem.

In 2024, the average appreciation of Czech real estate funds ranged between 5% and 7% per year, and similar returns are expected for 2025.

What to Watch Out for Before Investing

Not all real estate funds are the same. Before deciding, it’s worth checking a few key parameters:

• Fund Focus: Does it invest in offices, retail, or housing? Each segment reacts differently to economic cycles.
• Historical Returns: Long-term stable funds show 4–7% annually, even during periods of higher interest rates.
• Management Fee: Typically around 1–2% per year — make sure it matches the quality of management.
• Liquidity: Check how quickly you can withdraw money. Open-end funds usually pay out within a few months; closed-end funds may take longer.

Who Should Invest in Real Estate Funds

Real estate funds are ideal for investors seeking stable and calm returns with low risk.
They suit those who want to protect their savings from inflation, earn regular income, and avoid managing properties.

A typical investor is someone who would like to invest in “bricks” but doesn’t want or cannot buy an apartment.
They’re also suitable for those who already hold stocks or other investments and want to strengthen their portfolio with tangible assets.

Security and Regulation

Real estate funds in the Czech Republic are supervised by the Czech National Bank (ČNB), which monitors their operations and reporting obligations to investors.
This means your investment is legally protected and transparent.

All key information — from fees to the value of fund units — must be publicly available.

Conclusion: Start Your First Investment

Investing in real estate funds is the simplest way to become a “co-owner” of profitable properties without million-crown expenses.
You can invest either as a lump sum or start small — for example, with CZK 500 (≈ €20) or CZK 1,000 (≈ €40) per month — and watch your money work for you.

Find out which real estate funds have the best parameters.
At Stone & Belter, we thoroughly evaluate real estate funds and help you choose the right one.
Your first or next step toward financial freedom may be smaller than you think.

Note: All currency conversions from Czech crowns (CZK) to euros (€) were calculated at a fixed exchange rate of 25 CZK = 1 EUR.