"Owning your own home is not a matter of luck, but of math and discipline. But young people today want everything now," says Michal Makoš, founder of the online real estate platform
The real estate market is often opaque, complex and difficult for the average person to grasp. Michal Makoš, co-founder and CEO of Reas.cz, decided to remove this barrier.Since 2018, the platform has been making sales data available, providing an analytical view of the market and making it easier for people to find their dream home. Under his leadership, Reas has become not only a profitable company, but also one of the fastest growing technology projects in Central Europe. We talked to Michal Makoš about how the Czech real estate market is changing, what new trends are affecting it and why it pays to follow the data in the following interview.
You have been active on the real estate market for some time. Could you summarise how you think the market has changed in that time? I suppose it's quite a dynamic environment.
Real estate operates in certain cycles, which are usually based on the state of the economy. When the economy is doing well, it's reflected in real estate prices. In the last seven years that we've been doing this full time, we've seen significant growth and some major trends.
The first is a transformation in people's thinking - increasingly, they see real estate not just as a place to live, but as an investment that can generate a return. This has a number of implications.
The second trend is the growing interest in urban living. People have long been moving to places where there are better job opportunities and amenities. Although Prague, for example, has recently seen a slight decline, the trend towards urbanisation is still evident.
A third trend is the gradual decline in the number of persons per household. According to data from the Czech Statistical Office, the average has fallen from the original 2.52 in 2005 to 2.3 in 2024. So today we are roughly at two people. And this has a huge impact on demand - the more households, the more apartments are needed.
Could you say that these are the reasons why property prices are so high in the Czech Republic?
Exactly. If demand wasn't rising, prices wouldn't be rising either. But when you combine investment interest, urbanisation and shrinking households with the fact that people still want to own their own home, you get a situation where demand far exceeds supply. And as supply fails to respond, prices continue to rise. This is obviously a problem - especially for younger generations who are finding it increasingly difficult to access their own housing.
It's also a topic that many political parties are now addressing. Do you see any particular solution that could improve the situation?
Frankly, I don't know. It's an extremely complex problem and I don't think there is any simple solution. Of course, something could be done about construction, about demand, about regulation... but none of those steps alone is enough. I've been looking at how they approach it abroad, but even there you won't find a universal recipe. Most interventions have their limits. Maybe I would just say that even though it's harder to get housing today, people shouldn't give up - rather, plan more and calculate ahead. And that's what we're trying to help with - to be not only a source of important information, but a partner to guide them through the whole process of becoming a homeowner.
Could you briefly describe how your platform helps people when looking for or buying a property?
The goal is to get the best of the real estate market in one place. Our company puts specific real estate services in the hands of buyers and sellers for free, such as getting a price estimate for their property within minutes. When you want to buy, you'll find more than 35,000 current listings as well as a directory of vetted brokers. This creates a comprehensive ecosystem of services around selling, buying, data and pricing that helps people navigate what's happening in the market, while making their journey to owning their own home both easier and faster.
Did you come up with something that was completely missing from the market?
It was more of a gradual journey. It turned out that there was a lack of transparency in the market - and there was a strong demand for it from people. In the seven years that we have been involved in the topic, we said we wanted to be the ones to "light the lamp". And that seems to be working - we are giving people information that helps them make better decisions.
So it wasn't just about providing data, but you went more in-depth?
Exactly. Gradually, we realised that if we really want to make a difference, it's not enough to just serve up data. We need to explain it to people and support them in their decision-making all the time. Owning your own home is hard to achieve for a lot of people today, and our goal is to make the process as simple and quick as possible. So that the dream of owning your own home doesn't just remain a dream, but becomes a realistic goal.
What's more, Reas is currently on course for a record turnaround. What was the journey from initial idea to successful startup?
We were around 25 years old when the project started. To be honest, we didn't really know what we were getting into at the time and we lacked any previous experience. But with hindsight, I see perseverance as the key thing. A lot of people around here often jump from one project to the next, but it was the fact that we stuck with it that got us to this point. There are ups and downs in the life of a startup - there are several times we could have quit but didn't. And that, I think, is the essence of our success.
Let's imagine a situation - I want to buy or sell a property. Your platform works based on algorithms. Could you describe exactly what that process looks like?
Ideally, we would have met six months or even a year before you even decide to sell. It's at that stage that people most often start thinking - how much they could sell the property for, where they want to move to, what all needs to be done. We want to be there from the very beginning. To help people navigate what's going on around their property, to show them the appraisal value, to give them an idea of what's being offered or sold in the area. Most people don't approach selling a property like buying rolls - it's a long process that requires thoughtful steps. Our ambition is to show all the selling options available to the client. And if they then choose one of the ones we offer, that's obviously the ideal scenario.
So you operate on a commission model?
We have different models. Our business is not just focused on end customers - we also work with a number of companies that want to reach clients at the very moment they are selling or buying a property.
How much do you think the real estate market is changing under the influence of technology, perhaps even artificial intelligence?
Fundamentally. But it's important to say that real estate is a very conservative market at its core. Most people only deal with buying or selling a property once, at most a couple of times in their lifetime - so there is a lack of pressure to improve service on a daily basis. Example: if you buy coffee every day and you don't like it once, you'll buy it somewhere else next time. The café has an incentive to improve. But it works differently in real estate - often the client doesn't even know what to expect, and therefore the service isn't under as much pressure to move forward. But technology is changing that approach. Artificial intelligence can already connect vast amounts of data, facilitate decision-making and guide a person through the entire buying or selling process. And this impact will become increasingly pronounced.
Could it be said that technology today is helping people plan smarter about when and what to buy or sell?
Absolutely. Especially in the buying process, it plays a big role. There are few good properties on the market and when there are some, they disappear quickly. So speed of decision making is key. Technology that alerts you instantly to new listings, helps you evaluate them quickly, and helps you spot potential problems or hidden risks, is a huge advantage for a buyer.
Could you tell us what people most often look for when they have you watch for new property listings?
It's usually the standard, average properties.
What do you mean by that specifically?
In Prague, for example, it's a typical 2-bedroom apartment of about 60 m². That's kind of standard.
There is also a growing demand for cottages - people want good accessibility, peace and quiet, ideally close to the forest, but at the same time they realise that they can no longer afford such large spaces as before.
Do you think this is due to lower availability and rising prices?
I'm sure. New projects are building smaller flats than before because bigger ones are harder to finance.
Recently, the trend has been to offer so-called micro-apartments, where the kitchen is literally next to the bed. Is this another consequence of lower affordability?
Yes. House prices are rising faster than incomes, so people can afford less space. They used to buy three-bedroom flats, now they often buy two-bedroom flats. So micro-apartments aren't being built because people want them, but because it fits the reality of the market.
And what advice would you give to a young person who wants to buy their own flat these days? How to save up for it?
There is no universal guide. The key is to get your priorities straight. If housing is important to me, I need to adjust my decisions and financial planning accordingly. It's not impossible, just more challenging than before. It starts with a plan. Often people say that housing is a priority for them, but their day-to-day choices don't always match that.
So the question is: spend a hundred a day on matcha, or would you rather save?
Exactly. I don't want to moralize, but even before, people had to make sacrifices. My grandfather used to build his house on weekends, gather materials and work on it with my dad. It was hard, but they did it.
Today we live in an instant age where we want everything now. But owning your own home takes planning, patience and sometimes discomfort. If you need a down payment of 10 percent of the price of a six-million-dollar home, for example, that's 600,000. It's easier to save for two, but it's still about the math - setting aside a monthly amount, sticking to a budget and thinking ahead.
But if I'm 24 or 25, a recent graduate and not yet on a high income, isn't it hard enough to save?
Yes. That's also why the age of first-time buyers is shifting. It used to be that people bought a home around 25, but now it's common for the first purchase to come around 30. Some people also skip "starter homes". People used to buy a smaller home and move up to a larger one over time. Today they prefer to wait a while, save up and buy something bigger straight away - often outside the city.
Is there a difference between the demand of younger and older generations?
The average age of first-time buyers has been increasing for a long time. People used to buy their first flat around the age of 25, today it is more around 30 and later. I have a hypothesis - the older a person gets, the more they are concerned with practicality. At 25 you are interested in the coffee shop around the corner and the good "vibe" of the place, with kids you deal with daycare, playgrounds and nature. Priorities change and so does the desired location.
If we look specifically at Prague, which locations are currently "in" and which ones are not so hot?
In general, demand is spilling out of the centre. The centre is about 25 per cent more expensive than the wider area, so people are looking for more affordable alternatives. Traditionally, there is a high demand for new buildings in affordable locations such as Prague 9 (Letňany, Vysočany, but also further beyond Černý most), Prague 5 (around Smíchov, Stodůlky) and Prague 10 (Zahradní město, Záběhlice). Žižkov is also experiencing a relative boom. The historic centre itself is of course a specific segment for investors. The most desirable locations are usually those that are easily accessible, either to the metro or to the centre.
Do you think that prices can ever stagnate in Prague? Or that real estate prices will actually fall?
Definitely. Already in 2022 and 2023 we saw that apartment prices fell by about 20 percent in real terms. The property market develops in cycles. But today I would not dare to estimate whether prices will rise or fall. The key is to monitor demand, supply and factors such as interest rates.
If I'm in a situation now where I want to buy or sell - should I wait or do it now?
With my own home, I wouldn't worry so much about whether prices are going up or down right now. What's more important is comfort, stability, security, family and environment. If I can afford it and it's a priority for me, I should go for it. You can't time the market perfectly anyway - it's the life situation that matters, not the charts.
Do you think the real estate market in the Czech Republic is overvalued? Is there a big difference between what people advertise properties for and what they actually sell them for?
What you see on real estate portals are often unsold properties. These prices are not realistic, they just reflect the owners' perceptions. A well-priced apartment will sell quickly and disappear from the listings. Therefore, mainly overpriced apartments remain online, where owners have to gradually reduce the price. People have an emotional relationship with real estate and often price by feel or other ads, not by actual sales - and that is a mistake. That's why we always recommend basing it on relevant data.
Does home ownership still have value for Generation Z?
Yes, the desire to own is still strong. The data confirms this. The difference is that young people feel that the system is against them and that access to homeownership is unfairly difficult.
And isn't this more a relic of the post-communist mentality? In Western EU countries, people routinely live in rented accommodation all their lives.
It's certainly a cultural thing. In our country, when you reach a certain age, people around you ask, "When are you going to have children?" and "When are you going to buy an apartment?" Even if you don't agree with it, the pressure of the environment often prevails.
It's the classic "adult package": marriage, mortgage, kids.
Exactly. Those who don't own tend to be perceived as a bit outside the social framework. I'm not judging - that's the reality. The desire to own your own home is strong abroad too, people just approach it differently. I've been renting too and I've been happy. A mortgage would have cost us more back then. But then came the typical risk: the owners divorced and sold the apartment. We were faced with a decision - buy or move. We wanted to live somewhere else and we had no security. And with kids, you don't want to deal with changing preschools or schools every year.
So that actually pushed you to buy?
Yes, it did. And I think there are a lot of cases like that. But it's not just about the price, it's about stability, security and being able to plan ahead. That's why I don't think we should lose the dream of owning our own home. It still makes sense - even if it's harder, it's not impossible. It just requires a plan, patience and preparedness.
How do you feel about the CNB interest rates? Should the bank be more accommodating to young people?
That's a tough question. Interest rates don't just affect real estate, they affect the whole economy. Any intervention has far-reaching consequences. When the central bank lowers rates, it stimulates demand - not just for real estate but in other areas as well - and thus increases the risk of inflation. If the rate falls from, say, 5 per cent to 2 per cent, people can afford more expensive property without changing their income. This increases demand across the board and drives up prices. Lower rates may help in the short term, but they continue to inflate prices.
So there is no simple solution?
Absolutely. If there was a simple solution, it would have been used long ago. Everything affects each other - lowering rates will spark demand, which will drive up prices and again create inflationary pressure. And we're back to square one. If you look around the world, central banks are no longer generally holding rates at 2%, but rather around 2.8% or 3%. We may simply be living in a period where inflation will be consistently higher than it has been for the last 20 years.
And isn't the solution simply to build more?
That is easy to say. Everyone wants more housing - until they start building right in their backyard. It's called the NIMBY ("Not In My Backyard") phenomenon - we want apartments, highways and schools, but not right here. And that's one of the problems. As soon as a specific project is on the table, protests come. In doing so, new construction could at least partially help. But people want development, but not at the expense of their own comfort.
What about speculation? Are people who buy property just as an investment driving up prices?
I don't think it's as big a problem as people sometimes say. People also look at property as an investment, which is natural - the property market is stable, so it attracts investors. I don't think that's the main reason for the rise in prices.
You're a relatively young CEO. How do you manage to balance business and personal life?
Honestly, it's hard. When you're building your own company, work and personal life are constantly intertwined. You think about business all the time, even when you're with your family. My colleague and I thought of a startup as a sprint, but it's more like a marathon - and when you sprint from the start, you cook yourself before the finish line.
Gradually, we learned to set up our functioning to be sustainable in the long run - and that applies to our personal life as well.
Where do you want to take Reas next?
Our goal is to expand abroad. Partly because if we don't do it, someone else can come in and do it for us. Technology - especially AI - is making a lot of things easier today, so now is the perfect time to push the boundaries. At the same time, we want to continue to build a comprehensive ecosystem of services so that people don't have to run through nine different sites when they're selling or buying a home. They should be able to find out the price, sort out financing, selling, buying and tracking the value of the property all in one place.
A real estate "wikipedia"?
More like a comprehensive ecosystem, a place where you can handle everything related to real estate. Today, the whole process is fragmented and people often complain about how complicated it is. We want to change that.
