The number of of residents purchasing new flats in Brno fell 40 percent in 2017, with just 924 being sold by developers according to a report by Trikaya. But lack of demand isn’t the problem, according to the report. Instead, there’s been a drastic fall in the number of new units available and a corresponding jump of 11 percent in prices. “Problems with the city’s master plan have led to a sitaution where construction is really stopping,” says director Alexej Veselý. “In 2017, practically all of the cheaper flats costing less than CZK 50,000 per sqm disappeared and the prices of all the others are rising. The average price of a sold flat rose 11 percent from CZK 3.27m in 2016 to CZK 3.65m. The average price per square meter in sold flats rose y-o-y from CZK 53,500 to CZK 60,100.”
The sitaution is forcing many residents to move to nearby towns. Director Veselý says that rising rental rates (CZK 14,300 on average) and the biggest increase in sales prices has already taken place, but that a certain level of inflation will continue to nudge prices up.
