The average price per square meter in a new apartment in Brno has exceeded 100,000 CZK

Brno - The average price of an apartment in a new building rose in Brno in the first quarter of this year to 108,400 crowns per square meter. This represents an increase of 27 percent over the year, according to an analysis by a company that has long been monitoring the price development of new housing in Brno.

The reason for the continuously rising prices of new apartments in Brno is the inadequate construction, which is limited according to Trikaya representatives by insufficiently flexible urban planning. There is a significant demand for new apartments despite high prices.

"Currently, there are 483 available apartments in new buildings in Brno. During the first quarter, a total of 324 apartments were added to this offer; however, three-quarters of them were in a single residential project. Although apartments are constantly becoming more expensive and the average price per square meter is now almost 109 thousand crowns, around 40 percent of these newly offered apartments are already reserved," said CEO Alexej Veselý.

Prices have risen the most for the most sought-after studio apartments, which average four million crowns. This represents an increase of 34 percent over the year. "What is alarming is not only the year-on-year price increase but also the enormous rise in prices in the last quarter, which is now around 12 percent. Therefore, with every passing three months, a larger percentage of the middle class will not be able to afford their own apartment, leading to a significant shift towards rental housing, which only encourages the buying of apartments by large players and real estate funds," warned Veselý.

Average prices for new apartments are rising across all layouts, exceeding 100,000 crowns per m² for the smallest apartments, namely 1+kk and 2+kk. By April of this year, they increased to 114,400 crowns per m² for studio apartments and to 103,800 for 2+kk layouts. For a new apartment with a 3+kk layout, buyers now pay an average of 97,600 crowns per square meter, the same price prevails for 4+kk apartments and larger.

Just this January, the average price per square meter in a studio apartment was 104,000 crowns and in a 4+kk apartment 88,500 crowns.

In the first quarter of this year, 249 new apartments were sold in Brno, which is 30 percent less than a year earlier, but the total value of sold apartments was nine percent higher, amounting to 1.37 billion crowns. The average apartment size of 60 m² was purchased by buyers for 5.5 million crowns. According to the analysis, the hope for a drop in prices is minimal. Therefore, residents of Brno often turn to the surroundings of Brno, where the average price per square meter for new housing is around 63,000 crowns, but the supply of apartments is also limited there, just like the supply of family houses.