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Last year, the prices of new flats in Brno rose by almost a quarter year-on-year

“For sellers of new Brno buildings, the second quarter was the most successful quarter since the economic crisis 13 years ago. Interest in new flats did not subside at the end of the year, despite rising mortgage prices. This is due, among other things, to the growing number of investment purchases. In addition, some buyers who considered or postponed the purchase were afraid of rising rates and in the second half of the year tried to make the planned purchases at an acceptable interest rate, “said Šudřich.

The growing number of flats on offer also made it possible to increase sales. At the beginning of this year, 750 new flats were available on the market, which is half as much as a year ago. In addition, this number is supplemented by 450 flats, which are currently reserved and their sale has not yet been completed by a signed contract.

Last year, the offer of new flats was expanded by construction in the part of Brno around Cejl and Bratislavská streets in the territory of the Brno-střed district. “This part of the city, nicknamed the Brno Bronx, has experienced an unprecedented development of residential construction, which in the past year was also reflected in the number of completed transactions. 490 new flats were sold in the Brno-střed district. The second most popular location was the Královo Pole district with 263 flats sold, ”said Šudřich.

Interest in one-room apartments

The most popular layout of new flats in 2021 was one-room flats, which accounted for 40 percent of flats sold, and interest in them increased by a quarter year-on-year. Until 2020, buyers were most interested in two-room apartments.

The average price per square meter in a new building has basically doubled since 2015. While at that time the average price was 50,200 crowns per square meter, in 2021 it rose to 100,100 crowns. The price was influenced by, among other things, high demand, and its cooling at the end of the year also brought stagnation in prices.

The average price per square meter is now the highest for one-room flats, on average 127,500 crowns, for two-room flats it is 120,000 crowns on average, a meter in a three-room new flat costs 124,000 crowns and in flats with four or more rooms. which is usually the least interested, to 118,000 crowns.

For those interested in a two-room apartment with an area of ​​58 square meters, this meant that they would pay seven million crowns for housing, the so-called studio with one room and a kitchenette with an area of ​​36 square meters will cost an average of 4.65 million crowns in the new apartment.

According to Šudřich, the offer of new flats should continue to grow this year. “A relatively large number of new projects are being prepared, which could release more flats on the market. Combined with the expected decline in demand, it is likely that the prices of new flats will rather stagnate. High mortgage prices, which according to the Czech Banking Association may reach over five percent in the coming months, mean an increase in the average mortgage payment by 5,000 to 6,000 crowns per month. Such expensive mortgages can discourage many people from buying, “said Šudřich.

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