The Slovak government has relaxed criteria for selecting investment partners in the state-supported rental housing scheme, allowing collective investment funds to participate.
The Slovak government has amended the criteria for selecting investment partners in its state-supported rental housing scheme. Previously, only legal entities were eligible to invest, however, the new rules enable collective investment funds to enter the market. This change is anticipated to broaden the landscape of available capital for rental housing projects, thus providing greater accessibility for ordinary citizens wishing to invest in real estate through these funds.
Moreover, the government has halved the required net asset value for investment partners from 100 million euros to 50 million euros. This modification is significant as it lowers the entry barriers for potential investors and allows a diverse array of funds to engage in the program. One of the oldest managers of real estate funds has already expressed interest in this newly opened opportunity to invest.
As a result of these adjustments, the range of investment partners is expected to expand, ushering in a wider spectrum of capital that can be mobilized for developing affordable housing in Slovakia. Eva L, the director-general of the Agency for State-Supported Rental Housing, highlighted that these changes will accelerate the growth of accessible housing in the country, amidst ongoing challenges related to housing affordability and availability in Slovakia.
