Fond Českého Bydlení SICAV (Czech Housing Fund), a fund specialising in investments in residential rental housing, is launching the Fond Českého Bydlení Retail sub-fund. The investment strategy, previously available to qualified investors, is now being opened to a broader group of individual investors, with a minimum investment of CZK 500 and an expected average annual return of around 6-8%.
The Fund is launching this new investment opportunity at a time of rapid growth. Since 2024, it has increased the value of its real estate portfolio fivefold to CZK 2.7 billion, and following the completion of a current acquisition, the portfolio is expected to approach CZK 3 billion. The number of residential units under management has grown to 1,100, while the number of investors has increased by almost 80% over the same period, reaching 1,660. Investors who have been with the Fund since its establishment in 2018 have seen their investment grow by 84.18%.
“The launch of the retail fund is a logical next step in our long-term strategy. Individual investors have been approaching us for some time with an interest in investing in rental housing, and we can now offer them this opportunity through a fund specifically designed for this group,” says Jakub Kořínek, Co-Founder of Fond Českého Bydlení.
Rental housing is a segment that is gradually increasing in importance across both Europe and the Czech Republic. According to Eurostat, 31.6% of the EU population lived in rented housing in 2024, compared with approximately one quarter of the population in the Czech Republic. Demand for rental housing is supported in particular by high home purchase prices, younger generations’ preference for greater flexibility, and declining affordability of home ownership in larger cities. For investors, residential rental housing offers an opportunity to participate in the returns generated by a diversified portfolio of properties.
From Czech regions to Germany
Fond Českého Bydlení currently owns 48 properties across the Czech Republic, Slovakia and Germany. Its international expansion represents another step in the geographical diversification of the portfolio. The acquisition of a portfolio of 25 residential buildings in Saxony and Bavaria has expanded the Fund’s presence into the German residential market while further diversifying rental income.
“Our ambition is not to grow at any cost. We look for markets where we can leverage our experience in regional rental housing and where the relationship between acquisition prices and rental yields makes long-term economic sense. Germany is a logical next step for us,” says Tomáš Novák, Co-Founder of Fond Českého Bydlení.
Fond Českého Bydlení was established in 2018 with a focus on regional rental housing. It invests in residential properties in locations with growing employment, good transport links and stable demand for rental housing. In addition to rental income, the Fund also seeks to create further value through renovations, change-of-use projects and development. The benefits of a large-scale portfolio include diversification across locations and property types, as well as economies of scale in property management.
“We value the trust our investors place in us and want to continue building it through long-term relationships and open communication. The new retail fund builds on our experience with regional rental housing and allows investors to get started with as little as CZK 500. It makes this opportunity accessible to people who want to build their savings gradually over time,” says Lucie Procházková, Chief Commercial Officer at Fond Českého Bydlení.
