Investika multiplies Czech money by betting on Polish real estate

Investika, a Czech company founded in 2015, exemplifies a successful model for real estate investment funds that cater to retail investors, a concept largely absent in Poland. The company manages assets worth 2 billion euros, with its funds attracting significant capital, prompting them to seek opportunities beyond the Czech Republic's borders due to the domestic market's saturation.

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This is something we don't have in Poland.

The success of these Czech funds is rooted in their legislative framework, which allows for open-end real estate funds accessible to everyday investors with small initial investments, as low as 4 euros per month. This contrasts with Poland, where the development of similar investment vehicles, such as REITs (Real Estate Investment Trusts), has stalled. The article posits that Poland's legislative environment, rather than investor sentiment, is the primary barrier to the growth of such funds.

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Your market is a great example of how to build a strong sector: Czech funds attract so much capital that they invest abroad because the domestic market is simply too small.

Collectively, Czech real estate funds gather close to 2 billion Czech koruna (approximately 80 million euros) each month, accumulating nearly 1 billion euros in new capital annually. This substantial inflow, combined with property income and leverage, creates investment volumes too large for the Czech market alone. Consequently, these funds are expanding into international markets, with Poland being a natural target due to its larger economy, population, and commercial real estate sector, which could potentially yield higher returns.

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I believe the lack of Polish funds of this type is solely a matter of legislation. I don't think Polish investors differ from Czech ones and have objections to investing in commercial real estate.

The article suggests that if Poland were to establish a similar legislative framework, the potential for its real estate fund market would be immense, possibly doubling the size of the Czech market. The author argues against REITs as the sole solution for retail investors, noting that REITs function more like stock investments, exposing investors to market volatility. The current Czech model, offering direct investment in property funds, appears to be a more stable and accessible option for a broader range of investors.

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REITs are in practice an investment in stocks, and thus also exposure to exchange rate fluctuations and market volatility.