This month a Pavel Pařízek and Dušan Otradovec from our Brno office attended a conference which focused on what is happening in the Brno property market. It was attended by the top developers and real estate agents in Brno. Here is a summary of the conference:
Brno property prices look to continue their surge
– number of inhabitants in Brno is actually decreasing. More people are moving away from Brno into the immediately surrounding locations
– to approve a development project in Brno and Prague usually takes 8-10 years right now
– building production is decreasing even while the demand is still strong – this is pushing the value of the flats up – approx 8% decrease in building production
– building permits approved showed a 5,2% decrease compared to last year, started projects a 9% decrease compared to last year, finished flats a 13% decrease compared to last year
– building production in Brno is decreasing 1/3 – 1/2, but in the immediate surroundings of Brno it is increasing; there are more projects in the Brno surroundings – more rental houses due to land availability
– 2+kk flats used to be 50% of the market, however now because demand is so strong it is only 24% – this is because the price per m2 has gone up so much
– price per flat in Brno has increased about 13% compared to 2015
– approx 1+kk price – 54.100 CZK/m2; 2+kk – 55.200 CZK/m2, 3+kk – 57.000 CZK/m2. The price per m2 is higher in larger flats due balconies and terraces that are partially included in the calculation.
– New city plan – optimistically will be released in 2022, realistically 2026, however there has been some rumors that even 2030 is possible
– Overall Brno is not a very good city for projects as the procedure to approve a set of plans is very expensive and does not have support from the city hall. As well each part of the city has different rules.
All of this points to increasing prices in Brno. Interested in how to benefit? Contact Pavel Pařízek: pavel@czechpoint101.com, +420 774 440 999.
Updated/Aktualizováno: October 24, 2016,
