The market for new housing in Brno was in decline in 2023, with the lowest number of flats sold in the last ten years, namely 535 flats worth CZK 3.6 billion. The average price per square metre did not fall and remained at CZK 130,000. František Šudřich, director of Impera Styl, who has been monitoring the market for a long time, said this in a regular analysis of the new housing market.
“The year 2023 was full of nervousness. Developers were expecting a return of demand, buyers were expecting a reduction in interest rates. The atmosphere of waiting was reflected in the lowest number of transactions in the last decade – only 535 new apartments were sold in Brno. This is nearly 30 percent less than in the previous year and 50 percent less than in 2021,” Šudřich said.
The average offer price per square metre for new flats remains at CZK 129,000. Until mid-2015, it was below CZK 50,000 per square metre. People can now choose from more than 60 development projects in Brno with 1,650 available apartments of various sizes. The offer is thus 20 percent larger than a year ago.
There is still the greatest interest in small one-room flats. Last year, they accounted for 44 per cent of all new buildings sold, and buyers paid an average of CZK 4.5 million for a studio apartment in Brno. The average price per square metre of floor space for studio flats was CZK 135,000. Another 30 percent were two-room flats, whose average price was CZK 6.2 million. The greatest interest was in flats in the Brno-central district, where every fourth flat sold was located, while the interest in Královo Pole, Židenice and Brno-jih strengthened.
Šudřich does not expect a drop in prices for new flats in Brno this year either, but after the reduction in interest rates and cheaper housing loans, we can expect growing demand. “The supply of new housing in Brno is currently saturated, but the supply of new flats is crucial for long-term stability and maintaining the price level. The deferred demand of the last two years can quickly change the balance between supply and demand. It is therefore important to continue to promote efficient construction to ensure sufficient housing supply,” Šudřich added.
The construction of new apartments could be boosted by a new building law that will come into force in July and should significantly ease the permitting process for new construction. Brno is preparing a unified building authority and another public hearing on the revised master plan, which is crucial for further development.
Source: Impera Styl and CTK
