The average price per square metre of a new apartment in Brno stagnated in the first quarter of this year at the level it reached in the second quarter of last year, i.e. just below CZK 130,000. The downturn in the new housing market continues, although more flats were sold in the first quarter of this year than in the last quarter of last year. In year-on-year comparison, sales were about 60 percent lower, this is according to an analysis by Trikaya, a property development company that monitors the new housing market.
“From the development in the first quarter of this year, we can see that the new-build market has still not moved. The exceptions are properties in more premium projects in good locations. And even here it is true that it must be an attractive price,” said Dalibor Lamka, Trikaya’s CEO and Chairman of the Board of Directors.
While 292 new apartments were sold in Brno in the first quarter of last year, 108 apartments were sold in the first three months of this year. Compared to the previous quarter, i.e. the last one in 2022, it is a slight increase of 13 apartments. However, given the still high interest rates on mortgages, according to the analysis, the market cannot be expected to move soon.
The number of new apartments on the market decreased slightly during the quarter, the reason being the slowdown in new construction, with some developers postponing their housing projects due to the stagnant market and high interest rates.
According to František Šudřich of Impera Styl, who has been dealing with price developments on the housing market, no big change will occur this year. “We expect the process of market stabilisation to continue. Property prices will reflect the quality and location. In recent years, the market behaved atypically – almost everything on offer was sold, even overvalued properties. This situation is now returning to normal. We expect noticeable price changes rather in the rental segment. Over the last 12 months, average offered rents in Brno have risen by 13 per cent. This trend will continue as strong demand has shifted to rental housing due to expensive mortgages,” Šudřich said.
Source: Trikaya and CTK
Photo: Rezidence Písky Blansko – Trikaya Asset Management
