Below is a full transcription of the video interview with Pavel on Brno real estate.
Nathan: Pavel it’s great to be back with you and talk about what’s happening with the property market in Brno. Last time we did this was in February and we talked about the rents and the property prices, so we would like to know what’s happened since the spring.
Pavel: So let’s start with the rental prices. So we haven’t seen any increase since this period, but we are expecting that the upcoming months will be better. Why? Because, there are some flats that due to location and disposition are specially made for students. And right now the students they are starting to call us, write us emails, which means that they are starting to search for flats for the new period. So, this will keep the prices up.
Nathan: Okay and I think there’s around 50,000 students.
Pavel: Yes, there’s a lot of students in Brno.
Nathan: So it’s a big demand in the fall. Good. And what about prices themselves with property?
Pavel: So there are two groups of flats, the small one, and the bigger one. The small flats like 1 + kk or 2 + kk has increased their prices about 5% since the last time. But the bigger ones they decrease the prices about 2 to 3%. It’s mainly due the fact that the owners of the old bigger apartment made some discount. Because they realize that they cannot sell the flats for the same price as it was in 2008.
Nathan: Okay, so the larger ‘panelaks’, have really come down in place.
Pavel: Yes!
Nathan: And any other factors that you say have influenced the rents or the prices this way?
Pavel: I would say rents are mainly influenced right now by the students moving into Brno, they’re searching for apartments. And the property price see themselves, I think that the mortgage situation right now is very good for buying a flat. Which means that a lot of people that are going to the bank asking for mortgage as the interest rates start with 3.6% for own accommodation.
Nathan: That’s amazing! It’s very cheap.
Pavel: Yes!
Nathan: Good! That’s very interesting. And if you have some recommendations for an owner whose place comes up for rent in the next few months what would you say to them?
Pavel: I would say generally to them to be proactive. So if I see that the tenants are leaving in 2 months, the best what I can do is to go and ask a tenant if he would like to stay in the apartment and prolong the contract or if he will leave. That just give me a chance to put the flat to the market very soon. So I can find a tenant for the owner and owner cannot lose any of the rent in the whole year which is great.
Nathan: Excellent. Good. Thanks very much Pavel for giving us those/that feedback on the market.
Pavel: Welcome!
You can ask any questions about this interview or Brno real estate in general, by contacting us: brno@czechpoint101.com.
Updated/Aktualizováno: July 22, 2014,
