Demand for new flats in Brno surges despite record-high prices

Interest in new flats in Brno saw a strong revival in 2024, even as average prices per square meter in new builds remained above CZK 130,000, according to an analysis by Develo-Persian, a company that closely monitors the new-build market.

For the first time, the average price of a new flat in Brno exceeded CZK 8 million, with 1,298 units sold throughout the year—a figure almost 200 higher than the combined sales of 2022 and 2023. The surge in demand contrasts sharply with 2023, when the Brno real estate market recorded its lowest sales of new flats in a decade.

“Demand for new builds grew steadily throughout 2024, particularly in the latter months, despite only a gradual reduction in mortgage rates,” said Dalibor Lamka, reflecting on the year’s turnaround in the market.

In the last quarter of 2024, the average price per square meter of a new flat in Brno rose to CZK 131,300, with one-bedroom flats (1+kk) commanding the highest price per square meter at CZK 133,700. The average price of a unit reached nearly CZK 8.2 million, marking a significant increase compared to earlier in the year when new flats cost several hundred thousand crowns less.

This rise is partly attributed to the popularity of smaller flats, which sell faster, coupled with the release of larger flats in new projects during the year. This dynamic increased the average floor area of new flats by six square meters year-on-year, reaching 62 square meters, Lamka added.

The most popular project of 2024 was Nová Zbrojovka, which launched sales in the third quarter. Other developments like Pod Hády, Diorit, ABT Park, and Nad Arboretem also attracted significant interest.

Experts predict that prices for new builds in Brno are unlikely to decline. On the contrary, they expect continued increases fueled by strong demand. “Mortgage rates have gradually decreased to 4.85% and are expected to fall further, likely settling around 4.5%. Following a 5.1% rise in housing prices in 2024, we anticipate an even larger increase of approximately 7% this year,” said economist Vít Hradil.

With demand robust and new projects gaining traction, Brno’s real estate market is poised for another strong year in 2025.

Source: CTK
Photo: Židenice, Brno, YIT