Prague clients have higher demands for housing, says Jan Lobo for Roklen24Published by: 18.10.2022 13:01:39
The real estate market is likely to cool down in the near future. Rising interest rates and central bank regulation mean that fewer people will be able to access mortgages than in the recent past. Unsurprisingly, this year's average Hypoindex interest rate was 6.23 per cent in September, up from just 2.67 per cent a year earlier.
In uncertain times, it is useful to have activity spread across more sectors than just property. The group K&L Rock is therefore involved in asset management of equity and other markets in addition to property development. Read an interview with Jan Lobe, co-founder of K&L Rock.
How large a volume of assets (assets under management) do you currently manage? Which sectors are primarily involved?
The K&L Rock group currently has almost half a billion in assets under management. These sectors are primarily global markets and property development.
We are focused on equity markets, commodities markets and energy markets.
Equity markets have gone through dramatic changes this year. Has this affected your investment portfolio in any way?
So to speak. We certainly have open negative positions in the equity markets, however, we entered into these positions with a long-term horizon. Therefore, we are not easily distracted by market movements. Over a 5-10 year horizon, we still believe in the growth of an economy like the US economy.
This year has once again offered investors interesting entry prices.
Central banks have begun tightening monetary policy. Has this had any impact on the financing of your development projects?
Yes. It is mainly in the form of increased bank interest rates on both project financing and our customers' mortgage approvals and terms.
What type of clients do you have?
They are mostly individuals, who can be referred to as qualified investors.
You focus on residential development. Are you planning other types (office, retail or logistics) in the future?
We are certainly not opposed to these sectors as well. We would like to add commercial properties to our long-term assets, but at the moment we are concentrating on current projects, and these are residential in nature. If the group continues to grow at the rate it has done to date, we will certainly look at other opportunities soon.
Do you notice any regional differences in the preferences of your residential customers?
Our Prague clients prefer covered parking. In the regions, on the other hand, covered parking is not required; our customers usually find an outdoor space sufficient.
We also do not offer higher standards in locations outside of Prague, such as the Residence na Bradle in Světlá nad Sázavou. These include, for example, the layout of apartments or superior bathroom tiles. Such modifications impose higher construction requirements and are typical for exclusive projects in Prague.
Are you planning to enter foreign markets with your development?
We are not planning to enter foreign markets in our development in the next five years. I believe that there are still many nice places in our country for great projects.
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K&L Rock also declares that it is not liable for any direct or indirect damage resulting from trading on the capital markets in general, and posts in discussions expressing the views of readers may not be in line with the operator's position and therefore cannot be regarded as its views.