Pavel from our Brno office talks about property in Czech Republic’s second largest city so far this year. Pavel touches on both sale prices and rent prices.
Interviewer: Pavel, we’d like to know what’s been happening in Brno with the real estate market since the beginning of the year. What have you seen?
Pavel Parizek: I think the market is recovering from the last years and we saw that the prices have been quite stable. According to HB Index although it is mainly for Pargue and the other three estate agency statistics we saw only small drop of the value of the flat about 0.6, 0.7 percent and it’s only because the large flats are taking the price a little bit down, but the small flats are doing even better and we are able to sell for a higher amount of money.
Interviewer: Wow, so some increase in the small flats you think this year.
Pavel Parizek: Yes.
Interviewer: That’s very good, and why do you think the market is moving that way in Brno?
Pavel Parizek: Well, there are always some negative and positive influences on the market. I believe the negative are the rate of unemployment, also the Czech recession of the economy because it taking a little bit or stabilizing the prices on the same level and that’s why are not the prices decreasing. On the good side we have very good mortgages, good rates around three percent. Even for investment you can get the mortgage of 3.19 percent which is really great.
Interviewer: Yeah, that’s fantastic. Good rate. And what about rents, what do you think has happened with those?
Pavel Parizek: I think rents are also quite stable. It’s true that after deregulation we have large amount of large amount of flats in Brno, so students like mainly those flats from old panel flats or old panel buildings that has around 80 meter squared and basically the price is around 10 to 11,000. So, the bigger and luxury flats are harder to rent, but again the small flats like 1+1, 1+kk they are really doing very well, specifically in the locations where there’s business like Kralovo Pole.
Interviewer: Excellent. Thanks very much, Pavel, for giving us that.
Pavel Parizek: Welcome.
Updated/Aktualizováno: July 22, 2014,
