Investing in real estatelrealis inis among the mostmostestmostonesisômeasures for the protection and appreciation of assets. It is in šif today is betteršinSlovakiaSlovakia or CCzech Republic? This question is on the minds of many investors today who h ldatau príleoopportunities in the real estate marketlrealmarket. Ifé inýnoses možWell, aboutNo.ifávať from the developerýprojects, ifé from immovableľnostnýfunds and forNo.What is urbanization?ácia dôbutžitejšor notž itselfý decline in populationáWhat? The discussion between Peter Varga of the Highgate Group and Tom provided the answers ášand Cára from the companyCCrowdberry on the Highgate Talks podcast #44.
When investing in real estate, investors most often choose between two approaches:
1. Do not moverealfunds Real Estate Funds
Real estate funds invest in existing commercial properties that generate regular rental income. Investors benefit from diversification and professional portfolio management.
The advantage is greater convenience and less need for active decision-making. The disadvantage is typically a lower return, which, according to Tomáš Cár, hovers around a few percent per year for many funds.
2. Real Estate Development Projects
The second option is to invest directly in real estate development projects while they are under construction.
In such cases, the investor shares in the developer’s profit margin and can achieve significantly higher returns. On the other hand, the investor also bears a higher risk, as the success of the investment depends on the specific project, its financing, the sale of apartments, and the overall market situation.
According to Tomáš Cár, successful residential projects can yield expected returns in the double digits. As an example, he cited the Park Zátišie project in Bratislava, where Crowdberry is targeting an annual return of approximately 12 to 13 percent.
In the 44th episode of the Highgate Talks podcast, Peter Varga spoke with Tomáš Cár from Crowdberry about the opportunities currently available in the residential and commercial real estate markets, what the differences are between investing through funds and real estate development projects, and why, despite unfavorable demographics, they still have faith in Slovak cities.
You can watch the entire 44th episode of the podcast here:
When investing in real estate, the same rule applies as with any other investment—higher potential returns come with higher risk.
While funds spread risk across multiple properties, real estate development projects are typically concentrated in a single specific asset. Investors must therefore evaluate the quality of the project, the developer, the location, and market conditions more thoroughly.
Therefore, there is no one-size-fits-all solution. The choice depends on the investment horizon, the investor’s experience, and their willingness to take on risk.
One of the main topics of discussion was a comparison of the Slovak and Czech real estate markets.
According to Tomáš Cár, the Czech market is larger, more liquid, and attracts more foreign capital. In 2025, the Czech Republic recorded a record volume of transactions in the commercial real estate market of approximately four billion euros, while Slovakia exceeded the one-billion-euro mark.
However, the greater stability of the Czech market is also reflected in lower yields.
In Slovakia, investors generally demand a higher risk premium, which means a higher potential return, but also a higher level of risk.
According to him, diversification across both markets therefore makes sense for most investors.
When discussing investment in Slovakia, unfavorable demographic trends are often mentioned.
Slovakia is one of the fastest-aging countries in the European Union, and its population is projected to decline in the coming decades.
Tomáš Cár, however, points out an important trend—urbanization.
Although the total population is declining, people continue to move to larger cities in search of work, education, and health care. Bratislava and the regional capitals, therefore, remain attractive locations for residential projects.
Paradoxically, Slovakia is also facing a shortage of new apartments today. Construction has slowed in recent years, and the number of completed apartments is among the lowest in recent history. This is putting pressure on prices while also creating opportunities for developers and investors.
Not every property is an investment.
When asked whether to buy a house in a remote village or an apartment in Bratislava, Tomáš Cár was quite clear. In his view, people should buy real estate in rural areas primarily for personal reasons and not with the expectation of future investment returns.
On the contrary, it considers the following to be promising locations:
He identified the Tatras as the second-strongest residential market in Slovakia, after Bratislava.
The discussion concluded with a question that an increasing number of investors are asking themselves: Should they invest at home or abroad?
Tomáš Cár acknowledged that diversifying into foreign markets may be justified. Nevertheless, in his view, most investors should first build a portfolio in the domestic market and only then consider more distant destinations, such as Dubai.
Foreign markets, too, carry their own risks, and geographic proximity often means a better overview of the investment as well as easier asset management.
The discussion showed that there is no one-size-fits-all answer to the question “Slovakia or the Czech Republic?”
The Czech market offers greater stability and liquidity. Slovakia, on the other hand, offers higher potential returns, particularly in Bratislava and regional capitals. Therefore, the decisive factors are not only the location of the investment but also the form of investment, the willingness to take on risk, and the ability to diversify the portfolio.
One thing, however, holds true regardless of the country: investors who want to protect and grow their capital over the long term should make decisions based on data, not emotions.
You can watch the full interview on real estate investing here.
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