According to estimates by developer Milorad Mišković, Prague is short approximately 155,000 apartments. The lengthy building permit process, however, complicates not only new construction but also the planning of return on investment. The founder and co-owner of Karlin Port Real Estate presented plans for investments totaling 5.5 billion crowns on the RealChat program on FocusOn.cz, provided an overview of how the real estate fund operates—which, he said, has achieved a net annual return of 13.21 percent since its inception—and explained why he believes in micro-apartments and foreign markets.

Milorad Mišković has been active in the Czech real estate market for more than 30 years. In the 1990s, he was there when the first major foreign investors arrived, and later he played a role in the transformation of Prague’s Karlín district. Today, he is behind the development company Karlin Port Real Estate and the real estate fund Opportunity Real Estate Fund (OREF).

The fund has been in operation for nearly four years and, according to Mišković, currently manages assets worth 1.4 billion crowns. The net asset value (NAV) stands at 350 million crowns. The fund is intended for qualified investors, with a minimum investment of one million crowns.

“One of the main reasons we established the fund wasn’t just for tax benefits. We wanted to serve investors in a slightly different way through the fund structure,” explains Mišković.

A distinctive feature of real estate development funds is the longer lock-up period for investments. For OREF, this is typically four to five years; however, for select investors, the company has created a share class with a three-year investment horizon.

Building permits can take up to ten years

According to Mišković, the length of the permitting processes is one of the biggest problems facing the Czech real estate development sector. Investors must expect that years may pass between the purchase of land and the actual implementation of the project. This complicates planning for return on investment as well as the structuring of investment funds.

“If the permitting process worked as it does in other countries—or as it did here until 2014—the lock-up period could be shorter, perhaps as short as three years. Because it’s impossible to predict how long it will take to obtain permits, we need certainty,” explains Mišković.

For some projects that the company owns outside the OREF fund, he says, the building permitting process takes seven, eight, or even ten years. A longer investment horizon, therefore, does not necessarily mean a higher return, but rather the need to account for the uncertain duration of the permitting process.

New Funds and Investments Totaling 5.5 Billion Czech Korunas

In May 2026, Karlin Port Real Estate entered into a partnership with a Czech investor who committed to investing 5 billion crowns over three years. The company itself will contribute an additional 500 million. As part of the partnership, it plans to establish two new funds, one of which will focus on land in Prague that lacks a building permit.

“We’ve decided to establish a fund that will invest in land in Prague where a zoning plan exists but a building permit has not yet been issued. We’ll therefore invest in riskier projects and move them through the process until the building permit phase,” explains Mišković.

One of the projects in the works is a large area on the border of Prague 4 and Prague 10, where a new urban district consisting primarily of residential development is to be built.

According to the developer, Prague is short 155,000 apartments

Mišković considers the housing shortage to be one of the biggest problems facing the Prague market. According to calculations he made with his partners, the capital city is short approximately 155,000 apartments.

“Together with several of our partners, we’ve calculated that the housing deficit in Prague amounts to 155,000 units. If we look at the number of apartments completed last year, some sources cite 6,000, while others put the figure as high as 6,800. There’s a huge disparity there,” Mišković points out.

Vyšehrad Station Will Offer 138 Micro-Units Priced Between Five and Eight Million

One of the company’s most significant projects is the renovation of the historic Vyšehrad Station. The project will create 138 micro-units ranging in size from 20 to 35 square meters, supplemented by several larger apartments. Prices for the smaller units are expected to range between five and eight million crowns.

“Although the price per square meter will be higher, the total price will still be attractive thanks to the small size of the apartments. We’ll have residential units ranging from five to eight million crowns,” says Mišković.

The project is intended to appeal to investors, parents of international students, and businesspeople commuting to Prague. It will include concierge services inspired by five-star hotels. The developer also plans to preserve as many of the station building’s historic features as possible.

Plans for Up to 3,200 Apartments in Belgrade

Mišković is also focusing on foreign markets. In Belgrade, Serbia, he is preparing several projects, including a retail park covering 58,000 square meters. Another project involves the revitalization of a former industrial site, where up to 3,200 apartments could be built.

He also sees investment potential in Montenegro, where he is developing a residential resort on the Adriatic coast through a fund structure. He believes that premium real estate there could eventually surpass the prices of some attractive locations in Croatia or Italy.

Prague Still Has Room for New Neighborhoods

Mišković was previously involved in the transformation of Karlín. Today, he sees further potential in areas such as Letňany, Zličín, Prague 9, and Prague 4. He also considers Holešovice—particularly the Bubny area—to be an exceptionally interesting location.

However, according to him, their development is complicated by unresolved property issues and the challenging coordination required among various institutions.

“I think the biggest hurdle is time. A project can’t be short-term; it can’t be completed in five, seven, or ten years,” Mišković points out.

You can watch the full interview by Pavlína Prokešová with developer Milorad Mišković as a video or listen to it as a podcast to learn:

How Milorad Mišković met his first foreign investors in Prague and what fundamentally influenced his career?

What criteria does he use to select development projects, and how quickly can he decide on an investment?

Why does he believe it’s difficult to introduce premium paid services in residential projects in the Czech Republic?

What role do emotions play in real estate purchases in Serbia, and why are some areas in Belgrade more expensive than Prague?

Which Prague neighborhoods have the greatest potential for revitalization, and why does he consider the development of Bubny to be exceptionally challenging?