In the world of real estate, it is quite common for prospective buyers to unexpectedly find...
As part of our business, we regularly meet people who want to invest or buy real estate. However, when we get into a deeper debate, we often see that the assumptions on which they base their decisions are not based on facts, but rather on desires or past experiences. Many of them adapt and rationalize reality to suit their ideas and plans. It is natural - a person has a tendency to explain and justify his decisions in such a way as to support his actions.
This is precisely why we decided to publish this article - to express our attitudes and opinions on where we think Slovakia is headed, but also global society in general. And at the same time we feel the need to express assumptions that, in our opinion, escape many. Likewise we want to show that there are ways to prepare for these changes so that threats are turned into opportunities.
1. A world that is losing stability
Today's world brings with it more systemic risks than at any time in the past - and this is not just a subjective feeling, but a fact supported by data. Stability can be understood as the system's ability to withstand shocks. This very ability is today significantly weakened in key areas: geopolitics, economy, rapid technological changes, social stability and the environment.
At first glance, it may seem that nothing fundamental has changed - ordinary life goes on, shops are open and the streets are quiet. However, that is just an illusion. Psychologists call this phenomenon "normalcy bias" – a tendency to believe that the world will remain as it is today and to underestimate the risk of fundamental change.
From an investment perspective, however, the reality is clear: the risk of systemic shocks is growing. And those who rely on a semblance of stability will be most surprised when change comes.
2. Populism at home, struggle of great powers abroad
The first and at the same time the key problem that we perceive today is politics. People often complain about the kind of politicians we have and how they run the country. However, few people admit that politicians are actually only our mirror. They reflect the idea of the voting majority about the direction the country should go - and unfortunately, their choice is often just a sign of defiance against a system they are not happy with.
The political balance in Slovakia has been disturbed for a long time. Populist forces are repeatedly winning here, building on the frustration of the residents and opening the country to influence from the East. A weak economy reinforces this trend – when results are lacking, people rely on simple promises and nationalist rhetoric.
At the global level, we are observing a fundamental shift: the world is increasingly divided into two blocs. On one side are the USA, Europe and their allies, on the other are China and Russia with their partners.
Although relations between Europe and the USA are often tense, in decisive moments it is shown that they are still the closest in terms of values and civilization. Russia and China, on the other hand, are united by a common enemy - the West. This allows them to put aside their own differences and cooperate where it strengthens their ambitions for power. Their goal is to weaken the dominance of the USA and Europe and gradually shift the center of gravity of world power to the East.
3. Slovakia in the trap of decline
Politics and economics are inextricably linked. If a country is subject to populism and short-sighted decisions for a long time, the result is a weakened economy. And that is exactly what we see today in Slovakia.
Slovakia is entering a period of long-term economic decline. Systemic problems are behind this decline: the aging of the population, dependence on the assembly model, growing indebtedness and the long-term decline of education and the education system.
Another serious problem is the outflow of young and educated people abroad. They leave not only for higher incomes and better jobs, but increasingly also for higher quality studies. Unfortunately, most of them do not come back. The country thus loses talent, future leaders and taxpayers who could start innovation and growth. Without young and educated people, Slovakia has no chance of modernization, innovation or the creation of an economy with higher added value.
Such an environment discourages capital – not only because of weaker growth, but also because of low predictability and limited liquidity. History shows that in times of crisis markets close, buyers disappear and investments remain "frozen". After 2008, the real estate markets came to a standstill, during the Greek debt crisis, bonds were practically unsaleable, and even during the COVID-19 pandemic, it became clear that liquidity can disappear overnight.
At the same time, the weak economy creates fertile ground for populist and nationalist forces. When growth does not come and people lose faith in the future, simple promises and orientation to the East gain appeal. Political rhetoric thus becomes a substitute for missing results, which further increases the risk that the country will stagnate economically and geopolitically. In the end, there may be an effort to cut off from the "evil" West - a step that would move Slovakia closer to authoritarian regimes and even further away from prosperity.
If you have property only in Slovakia, it is nonsense to assume that when the situation worsens, you will sell everything and leave. By then it will be too late – liquidity will disappear just when you need it most. This is how the majority thinks.
4. AI – technology that changes everything and a hard blow for Slovakia
Artificial intelligence is the most fundamental technological change since the industrial revolution. Just a few years ago, it was perceived more as an academic experiment, but today it is already penetrating areas that were once exclusively the human domain - from data analysis to legal services to creative industries.
Each technological revolution has radically changed the labor market. The industrial revolution deprived many artisans of their livelihood for a while, digitization in the 1990s changed banking, media and commerce. But AI goes further – for the first time it affects thinking, decision-making and creativity. Millions of people may lose their jobs, inequality may deepen, and social frustration may result in populism and authoritarian solutions.
In the end, AI can be the engine of enormous productivity, more efficient healthcare or a higher quality of life. But these positives will become apparent over time. The transition period will be painful for many countries – years, perhaps decades, as people deal with job losses and a fundamental change in how the economy works.
This could mean a hard blow for Slovakia. The automotive industry, the backbone of the economy, will be massively automated and some production may be shifted back to home countries. The service centers of multinational companies, which today employ thousands of people, will be able to replace algorithms in the near future.
The consequence can be an increase in unemployment, a decrease in income and a deterioration in the standard of living. The situation is further complicated by the departure of young talents - they leave for better education and work, and most do not return. Slovakia is thus losing a generation that could bring innovations and help manage this transformation.
If the country does not change and adapt, it risks not only economic weakening, but also political consequences.
5. Warning signs that we ignore
People tend to believe that the world will remain as it is today. As long as they go to work, children to school and shops are full, the illusion of stability is created. This is the already mentioned normalcy bias – the tendency to underestimate the risk of fundamental change and to convince oneself that "nothing dramatic will happen".
However, history shows otherwise. In 1929, it was assured that the American market was healthy, and a few months later the crash came. In 1938, politicians believed that Hitler had only to give in, and a year later war broke out. In 2008, the belief was that property prices would continue to rise until the mortgage crisis swept the global economy. The signals were always visible, but most ignored them.
Similar blindness is manifested in Slovakia. Although the problems abound - populism, the weak economy, the youth leaving and the rise of AI - a large part of society convinces itself that it does not directly affect them. This attitude is dangerous, because it is in times of peace that crises are born. When the change hits full force, it will be too late to react.
6. Where will the wealth go?
The risks we are talking about can dramatically accelerate the division of the world. On the one hand, countries that turn into authoritarian regimes will be economically impoverished and their people will live at a low level. On the other hand, states that can maintain stability will attract capital and become exclusive havens for the rich.
Such centers already include Dubai, Switzerland or Singapore. They have long attracted foreign capital, focus on innovation and technology, and provide one of the highest standards of living in the world. We can add other destinations to them - Monaco or Qatar.
History shows that this trend has strong roots. Switzerland became a haven for capital during both world wars, Dubai was able to turn oil revenues into a financial and technological center, and Singapore turned from a small colony into one of the main hubs of the world economy.
These countries are likely to further close themselves off from poverty and increasing chaos in the future. They will turn into exclusive havens for capital and the rich. Their wealth and influence will continue to grow, while many countries in the rest of the world will remain unprepared, ill-adjusted and condemned to stagnation or poverty.
7. Investment approach for an uncertain period
Investing today is no longer just about finding the highest possible return. The key is to protect the property and at the same time find an environment where it can grow in the long term.
In today's world, an approach that is not tied to a single scenario makes sense. "Anti-fragility" means that the investment portfolio can profit not only in stability, but also in crisis. If nothing happens, the investments generate returns, but if shocks come, the capital remains protected.
But anti-fragility is not only resistance. It is also the ability to grow through shocks. The basis is diversification – geographical, sectoral and monetary – and the transfer of capital to environments that attract wealth, innovation and entrepreneurial energy in the long term.
Artificial intelligence is a tremendous driver of change. It brings huge opportunities, but also huge risks. An investor who can distinguish where AI will be an engine of growth and where it will be a source of destabilization will be at an advantage.
We also approach business and investing based on the principle of anti-fragility: if assumptions about a crisis or upheavals come true, our investors are ready. If they are not fulfilled, nothing happens - the capital continues to work and brings stable returns.
8. Who gains and who loses
The world is entering a period that brings more uncertainty than certainty. Just because most people don't feel these changes yet doesn't mean they aren't happening. History shows that companies tend to ignore warning signs until it is too late. The difference between those who lose and those who gain is not what happens - but who was prepared.
No one can predict the future. However, we can predict with some degree of probability where risks will increase and where new opportunities will arise. An investor who follows the principle of anti-fragility does not need to know which scenario will come true - but he knows that in each of them his capital will be protected and ready for growth.
It is obvious that Slovakia will face serious problems in the future - be it geopolitics, political decisions or the consequences of artificial intelligence. We do not recommend relying on the fact that nothing will change, or even closing your eyes to reality. It makes sense to act today – so that assets are protected while generating returns no matter what the change causes.
9. Opportunity to join
A world full of uncertainties rewards only those who can think differently and act in time. We have already proven that our strategy works - safely, reliably and with market-beating returns.
Unlike traditional approaches that rely on price growth or good timing, we operate a business model that works regardless of market developments. Thanks to this, our partners can rely on security, stability and regular returns, which not only protect their capital, but also make it more valuable in the long term.
For more than 18 years, we have built a system that has already mastered various phases of the real estate market. Almost 1,000 real estate transactions, zero failed investments and stable returns prove that these are not promises, but a reality from which our investors have been benefiting for years.
You too can join our partners and investors who are used to getting more than just average from us - market-beating results.
Come discuss it with us and pave the way to investment opportunities that combine security with superior returns regardless of market developments.
