News Article Brno Czech Republic report residential
by Property Forum | Residential

The residential segment in Brno has booked rather not a positive record. Data from the real estate company Trikaya, as reports, are speaking clearly: while 1,192 apartments in new buildings were sold on the Brno market in 2021, last year it was only 492. This is the least in the last 10 years.

The first half of last year was especially hard when the effects of high-interest rates, inflation and general economic uncertainty were felt. In the last quarter, sales started to grow and developers are looking at this year with optimism. Because of this, it is not too much to expect them to go down with the price.

The range of developers remains wide in Brno. Their offer reaches almost two thousand apartments for sale. However, experts expect that if the Czech National Bank continues to lower interest rates, buyers who have delayed purchasing an apartment due to expensive mortgages will return to the market, and the situation may change quickly. The average rate of new mortgage loans in December 2023 reached a value of 5.65 %, which is a clear reduction compared to the 6 % peak from December 2022. The prices of apartments in new buildings in Brno went from below CZK 90,000 (€3,637) per sqm in 2020 to CZK 125,000 (€5,052) in 2021, where it remains today.