In Q1 2024, 246 resi units in Brno have found their buyers. This is a 100% increase compared to the previous year's average, according to data by Trikaya.
Prices have been rising slowly, moving just below the record value from Q2 2022. While ten-year statistics indicate that on average about 220 new units are sold in Brno every quarter, the last five years have redrawn this trend by about 10% downwards and until the end of last year, about 200 new apartments were sold per quarter. At the same time, more apartments than in the first quarter of this year were sold in Brno just before the economic effects of the Russian invasion of Ukraine hit the market, i.e. in the first three months of 2022. For more than two years, the average offer prices of developers ranged between CZK 125.000 to CZK 127.000 (€5.060 to €5.140) per sqm. However, in recent months we could have observed a gradual change in the trend.
For some time, prices were pushed down by the lower VAT on new apartments, which was reduced from the original 15 to 12% at the beginning of this year. However, most developers already reflected this change in their price lists at the end of last year.
The highest price per sqm remains for one-room apartments, reaching CZK 129.000 (€5.223) per sqm. Less than a hundred of these were sold in the first quarter. The greatest interest was in apartments in the ABT Park, Čtvrť Pod Hády, Allrisk Meridiem and Nad Arboretem projects.
"The discounting of mortgages drove inflation fears from people's minds, and the real estate market in Brno turned around after two years of stagnation. The improving buying sentiment is underpinned by the confidence that mortgage discounting will continue," states Dalibor Lamka, CEO and Chairman at Trikaya.
Although almost 250 new resi units disappeared from the market in the first three months of 2024, developers released significantly fewer for sale, only 34. In Q3 2023, developer price lists grew by more than 700 units only to compare. In March 2024, 1.732 apartments were available in more than five dozen active development projects. Of all the residential projects that have a stated energy requirement, class B is the most common on the PENB certificate. Only the Čtvrť Pod Hády and Diorit projects meet the highest class A for exceptionally energy-efficient buildings in the whole of Brno.
