A new way to invest in Prague property, without buying a home

Prague’s housing shortage continues to push prices higher, making home ownership increasingly difficult. Some firms now offer investment funds tied to residential development, allowing investors to access the market without buying a flat. If you’re priced out of home ownership for now, these ventures could likely help you build funds for a future home. 

The WOOD & Company Residential Fund offers one such approach. Investors don’t buy units directly, but invest in development projects and benefit from the appreciation of their investment shares as projects increase in value. With established developers and real estate teams managing the projects, investors avoid the responsibilities tied to ownership, financing, and upkeep.

These models do not address Prague’s housing imbalance directly, but they reflect a shift in how some investors are starting to approach the city’s real estate options. Expats.cz spoke with Jan Stránský, a wealth manager at WOOD & Company, about how the fund works and who it is designed for.

The Czech capital’s heated housing market shows no sign of letting up. Apartment prices rose 8 to 9 percent in 2025 and forecasts expect up to 8 percent growth in 2026, while mortgage rates, now averaging 4.9 percent, are expected to increase further. 

At the same time, a housing deficit of around 50,000 units, a 34 percent drop in building permits since 2016, and a 12 percent increase in new apartments sold in 2025 point to ongoing pressure from limited supply and strong demand. Analysts expect prices to keep rising as these imbalances persist, Stránský says.

For investors, these conditions support long-term price growth rather than direct ownership. The WOOD Residential Fund pools capital to invest in residential developments before units are sold. Investors share in the potential appreciation of the properties while also avoiding the traditional hurdles of ownership, including large deposits, maintenance, or financing. 

Projects are selected and managed in collaboration with development partners, with a focus on timing, permitting, and market demand. The fund targets returns of around 12-15 percent over a multi-year investment horizon, though performance is not guaranteed. 

Investors typically commit capital for at least three years (which effectively eliminates income tax on generated profits for Czech taxpayers) during which the value of their investment grows as project milestones are completed and assessed via bi-annual valuations. Entry terms, fees, and eligibility vary depending on investor status and local regulations.

Two upcoming residential projects illustrate how the fund allocates capital across different parts of Prague.

The Vackov project transforms the former Žižkov Freight Station into a modern residential district. In partnership with Cresco Real Estate, WOOD & Company is developing 1,100 apartments across multiple stages. The first stage, with 520 units, has a valid building permit, and construction is set to begin in early 2026.

The project benefits from strong infrastructure investments, including a new tram line, public spaces, and civic amenities. Total investment in the first stage will reach nearly CZK 5 billion, and completion of the project is planned over several phases between 2029 and 2034. The development emphasizes high-quality urban housing, integrating public green spaces and a promenade that will be publicly accessible. 

For investors, large-scale regeneration projects like Vackov can attract long-term demand due to improved transport links and new urban infrastructure.

According to the company, market prices already exceed projections by about CZK 20,000 per square meter, which may indicate potential upside for early-stage investors.

Šárka, developed in collaboration with Crestyl Group, is located on the border of the Divoká Šárka Nature Reserve, a sought-after residential area in Prague 6. The project comprises 245 units across 18 low-rise buildings and six premium villas, combining privacy, natural surroundings, and urban accessibility. Such locations may help sustain long-term demand.

The first phase of 98 units is planned for summer 2026, with the second phase following a year later. Limited land availability and protected area regulations restrict new development, which can support long-term demand for similar housing projects. 

Vackov and Šárka are structured as joint development projects with established partners. Vackov is a 50:50 joint venture between WOOD & Company and Cresco Real Estate, with financing arranged through Raiffeisenbank covering the final land payment.

Šárka also has all building permits in place and is being coordinated with Crestyl Group and local authorities. Its phased construction allows flexibility, while the Prague 6 location has limited comparable new developments.

This type of investment suits those who are able to commit capital over multiple years and accept development-linked risk.