Analysis: The average price of new flats in Brno continued to rise, year-on-year by 12.5 percent

Brno – The average price of new apartments in Brno rose in the second quarter of this year by 12.5 percent year-on-year to 158,600 crowns per square meter. At the same time, sales of new apartments increased by 40 percent compared to the second quarter of last year. The supply of apartments is now nearly double. This was reported in a regular market analysis by the development company Trikaya.

"The Brno market is now beginning to show the impact of projects prepared in previous years more significantly. Buyers have a wider selection than before, but at the same time, demand for new housing remains strong. The second quarter demonstrated that the market can currently absorb a higher supply even with further price increases," stated Dalibor Lamka, CEO and member of the board of Trikaya.

In the second quarter of this year, there were 2,551 available new apartments on the market, which is 85 percent more year-on-year. From April to June, people purchased 416 new apartments, compared to 298 in the same period last year.

The asking price of new apartments in Brno continued to rise. Compared to the first quarter, the price per square meter increased by three percent and year-on-year by 12.5 percent. The real selling prices of new apartments also rose, reaching 144,600 crowns per square meter in the second quarter, which is ten percent more in year-on-year comparison.

The growth in the average price of new apartments was influenced by the composition of the apartments on the market. The highest increase was in the smallest apartments with a layout of 1+kk, which typically have the highest price per square meter. While at the end of March these apartments represented 21 percent of the offered apartments, by the end of June they accounted for a quarter, which amounts to an increase of 200 one-room apartments in a quarter. The average asking price for these apartments reaches 171,000 crowns per square meter, with an average selling price of 148,397 crowns.

The supply of new apartments in Brno significantly increased in the second quarter of this year. While at the end of March there were 1,887 apartments for sale, by the end of June there were 2,551, representing an increase of 35 percent. The reason for this is the release of long-term prepared development projects for sale or the opening of new phases of large residential projects.

There continues to be the greatest interest in smaller apartments. According to Trikaya's analysis, sales of apartments with layouts of 1+kk and 2+kk account for more than three-quarters of all sold apartments in new constructions. "It is not true that buyers automatically want the smallest apartment possible. They often seek the greatest possible comfort for the price they can finance. With rising prices, a significant part of the demand is thus focused on smaller but well-designed layouts. Today, 2+kk apartments represent a compromise for many people between affordability, private housing, and sufficient living flexibility," Lamka added.