What is a real estate fund?
In essence, it is a pool of assets, with real estate being its characteristic and predominant investment. It primarily consists of a real estate portfolio, with investors purchasing or subscribing to shares of the fund.
Investors in real estate funds can enjoy the benefits of carefully curated, well-diversified real estate portfolios (such as rental income, stability, and appreciation) without assuming the risks and difficulties of property ownership (such as tenant management, maintenance, technical issues, etc.), or potential pitfalls (transactional, legal difficulties, and risks).
The Impact Asset Management, fully owned by the Duna House group, was the first to create a publicly listed real estate fund in Hungary specifically focused on residential properties. This was the Duna House Hungarian Residential Real Estate Fund, which, due to technical reasons, will be discontinued in the near future.
Based on the experience gained during the operation of this fund, the Fund Manager shifted its focus to obtaining permits and registrations for real estate funds (and potentially additional real estate funds) that are much more suitable from the perspective of Golden Visa criteria. As a result, both closed-end and open-end funds will be established, meeting the minimum investment requirements of €250,000 for obtaining the Golden Visa guest investor visa.
The Duna House real estate fund (and subsequently, its real estate funds) will consist of at least 40%, but significantly more, excellent quality residential properties, carefully selected for proper diversification, mainly in terms of location: these are Budapest or larger provincial urban, central, and developing regional locations, which are key factors in ensuring profitability, continuous liquidity, and solid appreciation. The guarantee of proper property selection lies in leveraging synergies with the parent company, which has been the most well-known real estate agency and property management company in Hungary since 1996 (and is also present in Italy, the Czech Republic, and Poland).
