The market for new housing in Brno revived last year, with 1,298 apartments sold despite high prices

Publisher
ČTK
15.01.2025 22:20
Czech Republic

Brno

Brno - Interest in apartments in new buildings in Brno revived last year despite the average price per square meter in a new apartment not dropping below 130,000 crowns. This was reported in an analysis by a development company that has been monitoring the market for new buildings for a long time.


For the first time, a new apartment in Brno costs an average of more than eight million crowns. The number of 1,298 apartments sold over the year is nearly 200 higher than the sum of sales for the years 2022 and 2023.

"The year 2024 was the complete opposite of what we witnessed in 2023 when the fewest new apartments were sold in the Brno real estate market in a decade. Demand for new buildings continued to grow throughout last year, especially in the last months, and this was despite the relatively slow decrease in mortgage rates," assessed the development Dalibor Lamka.

The average asking price per square meter of an apartment in a Brno new building reached 131,300 crowns in the last quarter of last year. The most sold were apartments with a layout of 1+kk, where the price per square meter averaged 133,700 crowns.

The average price of offered units in the last quarter exceeded eight million crowns for the first time, specifically rising to nearly 8.2 million. Just at the beginning of 2024, a new apartment in Brno cost several hundred thousand crowns less, Trikaya reported. "The rise in the average unit price is primarily due to smaller apartments selling faster, while new apartments in planned projects, including those with larger layouts, are being released into the market throughout the year. The average area thus increased year-on-year by more than six square meters to the current 62," added Lamka.

The most apartments were sold last year in the New Zbrojovka project, which started selling at the end of the third quarter, and there was also interest in the Pod Hády, Diorit, ABT Park, and Nad Arboretem projects.

According to experts, a decrease in prices for new buildings in Brno is unlikely; on the contrary, it is possible that they will continue to rise due to high demand. "The average mortgage rate continues to slowly but surely decrease, currently standing at 4.85 percent and is likely to further drop to around four and a half percent. After an average increase in apartment prices of 5.1 percent achieved in 2024, we expect an even more significant jump of around seven percent this year," noted economist Vít Hradil.
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