The prices of apartments in Brno have only risen slightly, there is little interest in large apartments

Brno - The prices of apartments in Brno have slowed their growth in the third quarter of this year, while rents, especially for small apartments, are rising. This follows from an analysis by the company Trikaya, which has been monitoring the situation in the real estate market in Brno for a long time.

"The days when prices rose by several thousand within a few months are gone. For example, last year, apartments increased by up to 18 percent, this year it is significantly less, at 6.5 percent. Prices are expected to stabilize in the coming months. We expect growth to be only slightly above the inflation rate," said Alexej Veselý, the executive director of Trikaya.

According to him, the average price per square meter of residential space in Brno is 80,826 crowns. This means that an apartment with an area of 62 square meters costs about five million crowns.

In the last three months, according to data from Trikaya, the price primarily increased for two-room and three-room apartments. "While studio apartments average around three million crowns, the price of two-room apartments has soared to 4.5 million and three-room apartments even to 6.5 million crowns," said Veselý. According to him, prices vary depending on the part of the city where the apartment is located.

The average price per square meter is particularly raised by the fact that the market is mainly offering larger, more expensive apartments. More affordable apartments with smaller floor space usually sell out quickly, while their construction is insufficient.

From the beginning of the year until the end of September, 621 apartments were sold in Brno, which is 170 more than in the same period last year. More than 70 percent of sales in Brno consist of apartments up to the size of 2+kk. "There is a noticeable decrease in interest in large apartments. Young families who would use them often cannot afford three- or four-room apartments due to rising prices and therefore settle for a smaller apartment or choose cheaper housing outside the city. Thus, Brno is losing its economically most productive generation of residents," added Veselý.

The rising rents also favor the purchase of small apartments, as according to Trikaya, the increase is the fastest for studio and one-room apartments. For investors, this situation is ideal because, just like with purchases, there is also the greatest interest in renting small apartments.