Prices of new housing in Brno continued to rise in the third quarter of this year. The average price per square meter in a new building rose to 124,500 crowns, which is ten percent more since the second quarter and even 41 percent more year-on-year. In a regular quarterly analysis, the real estate company Trikaya informed about it, which has been monitoring the prices of new housing in Brno for a long time.
According to the analysis, the demand for new flats is not declining, despite the constantly rising prices. From July to September, 184 people and companies bought a new apartment in Brno. Four out of ten flats were so-called studios, ie one-room flats. “Price growth was not stopped even by 300 new flats released for sale. Each buyer paid on average 70 percent more for the flat than five years ago. Nevertheless, new flats do not remain on offer for long and usually sell out long before approval,” said the company’s CEO Alexej Veselý.
The average price of new flats is raised by projects in the part of Brno known as the Brno Bronx. Between Bratislavská and Cejl streets, flats are now being offered for an average price of almost 135,000 crowns per square meter. People will pay as much as 4.5 million crowns for an apartment with an area of 30 square meters. “The situation is quite paradoxical, because until recently this location offered affordable new apartments near the center. Prejudices of the problematic location were suppressed by greater availability of real estate,” added Trikaya sales director František Šudřich.
The supply of housing in new buildings in the third quarter of this year increased by almost 300 flats, ie by 20 percent, there were a total of 574 flats on the market. The average price per square meter is the highest for one-room flats, where it reaches CZK 132,900, for flats with 2 + kk it is CZK 117,000 per sqm, flats 3 + kk for CZK 111,000 per sqm and for flats 4 + kk and larger CZK 112,500. A two-room apartment with an area of 58 sqm will now come to 6.8 million crowns, a 1 + kk apartment with an area of 36.5 sqm to CZK 4.9 million.
As stated by Marek Vinter, a representative of the Association of Brno Architects and Builders, the prices of new buildings in Brno are approaching those in Prague. “We expect inflation to partially support demand for real estate, as buyers will be motivated to invest their savings and protect them from significant depreciation. On the other hand, people who buy new apartments primarily for their own housing get into trouble,” Vinter added. .
Along with the low availability of flats directly in Brno, the prices of new buildings around the city are also rising. Last year, flats in the Brno-venkov district were sold for an average of CZK 64,000 per sqm, but over the last year the price has risen to CZK 95,000 per sqm, ie by 50 percent. “The demand for housing within reach of Brno is great. Due to extremely high prices, a family apartment in the city is an unattainable goal for many residents, so they are resorting to its borders,” stated Šudřich.
The availability of housing in Brno also wants to increase the city’s management, which plans to build up to 1,300 cooperative flats in the coming years. The city will build them without profit, as a result apartments should be cheaper. The loan for the construction of these apartment buildings will be taken by the cooperatives themselves and people will repay them in the form of rent. People who do not have a chance to meet the conditions for a mortgage loan at current real estate prices should also be able to achieve their own housing.
Source: CTK
