New apartments sold in Brno last year were the lowest in ten years, the average price did not decrease

Brno - The market for new housing in Brno was in decline in 2023, with the fewest apartments sold in the last ten years, totaling 535 apartments worth 3.6 billion crowns. The average price per square meter did not decrease and remains at 130,000 crowns. This was stated in a regular analysis of the new housing market by the director of the company Impera Styl, František Šudřich, who has been monitoring the market for a long time.

"The year 2023 was full of anxiety. Developers expected a return of demand, while buyers anticipated a decrease in interest rates. The atmosphere of waiting was reflected in the lowest number of realized transactions in the last decade – only 535 new apartments were sold in Brno. This is nearly 30 percent less than the previous year and 50 percent less than in 2021," Šudřich stated.

The average asking price per square meter for new apartments remains at 129,000 crowns. Until mid-2015, it was below 50,000 crowns per square meter. People can now choose from over 60 development projects in Brno with 1,650 available apartments of various sizes. The supply is 20 percent larger than a year ago.

There is still the greatest interest in small one-room apartments. Last year, they accounted for 44 percent of all sold new buildings, with buyers paying an average of 4.5 million crowns for a studio apartment in Brno. The average price per square meter of floor area for studios was 135,000 crowns. Another 30 percent were two-room apartments, with an average price of 6.2 million crowns. The highest interest was in apartments in the city district of Brno-Center, where every fourth sold apartment was located, and there was increased interest in Královo Pole, Židenice, and Brno-South.

Šudřich does not expect a decrease in prices for new apartments in Brno this year either, but after the reduction of interest rates and cheaper housing loans, an increase in demand can be expected. "The supply of new housing in Brno is currently saturated, but the influx of new apartments is crucial for long-term stability and maintaining price levels. The deferred demand from the last two years could quickly change the balance between supply and demand. It is therefore important to continue supporting effective construction to ensure an adequate supply of apartments," Šudřich added.

The new construction of apartments could be supported by a new building law that will take effect in July and should significantly ease the approval process for new construction. Brno is preparing a unified building office and another public hearing on the amended zoning plan, which is key for further development.