Real estate is increasing disproportionately to the economic situation of the residents of Brno

Brno – Among the biggest problems in Brno are, for example, the ongoing relocation of residents to areas outside the city or the disproportionate increase in land and property prices compared to the economic situation of the residents. This follows from the updated analysis of Brno, which will serve, for example, for the preparation of the urban plan or for decision-making on construction projects. In contrast, the space industry is thriving, said Jiří Malý, a social geographer at the Office of the Architect of the City of Brno (KAM), which prepared the analysis.

Experts evaluating problematic areas of urban development rely on the principles of sustainable development, including the principles of compact city and city of short distances, which Brno aims to implement. "From this perspective, suburbanization is the most problematic, as people, due to the insufficient supply of apartments, are moving outside the city. Meanwhile, Brno has a large number of unused development areas. These are former industrial sites near the center, as well as strategic locations in the wider urban area. Obstacles to new construction include an outdated urban plan, where residential areas are almost depleted, as well as complicated property relations, unprepared infrastructure, or missing flood protection measures," Malý stated.

Flood protection measures are associated with the construction of new urban districts, such as the new southern district of Trnitá. Their implementation is in various stages of preparation. Since last year, KAM has been coordinating their development with the aim of accelerating their creation.

The updated analytical materials gather data from the last four years. Although, according to Malý, urban development in the city is difficult to discern in a four-year cycle, some areas show a shift compared to the last update in 2016. This is particularly crucial in the real estate and land market. "There is a rapid increase in apartment prices, both for rent and sale. However, this trend is not accompanied by a corresponding increase in the purchasing power of residents. Simply put, the costs of living are rising without adequate improvement in the economic situation of most residents. Although this is a nationwide trend in larger cities, in relative comparison to other regional cities, Brno performs poorly," Malý noted.

The numerous middle class residents, according to him, are also struggling to access traditional forms of housing, and even an apartment in a panel building is becoming a luxury good in certain areas.

From a long-term perspective, Brno is strengthening its competitive advantage in progressive sectors. Information technology, especially cybersecurity, engineering, and the aerospace and space industry are well-developed.

In the field of transportation, the decision about the location of the new central station and the reconstruction of the Brno railway junction or the progress in the construction of a large city ring road are positive. On the other hand, parking capacities and a continuous cycling network are insufficient. The analysis also indicates that pedestrian needs are often overlooked in transport projects.

For the future development of the city, the approval of a new urban plan by the end of 2022 is crucial. The materials also indicate that the city lacks analyses of urban greenery, height zoning, or public spaces.