Brno real estate market awakens as PSN strengthens its position

PSN is successfully fulfilling its strategic goal of developing its activities in the regions of the Czech Republic. In addition to Prague, Pardubice and Hradec Králové, it is also intensively focusing on projects in South Moravia. PSN's Brno portfolio currently includes two apartment buildings, three industrial complexes and one multifunctional building. The most notable project is the ambitious revitalisation of a brownfield site in Plynárenská Street into the multifunctional complex Brno Jedna. In addition, the developer is actively looking for other new acquisitions in Brno.

"This is a gradual awakening after a year of price stagnation caused by high interest rates and fluctuations in energy and utility costs. The first quarter of this year only confirms the reviving interest in the real estate market in Brno. Growing demand has become the main driver of transactions. The group of buyers who use mortgage credit is returning, which is slowly being reflected in the prices of offered properties. In the first quarter, we registered an increase in the secondhand segment, and during the year we can also expect an increase in the new development," says Petr Pospíšil, director of PSN' s Brno branch, adding: "During 2024, we also expect a stagnation in the activities of institutional investors, as the speculative phase of investment is slowly coming to an end. Instead, demand from end clients who have been delaying the acquisition of their own property will start to wake up even more."

"Our many years of experience allow us to respond flexibly to changing market conditions. We are currently working on several major projects that reflect our commitment to sustainable development of the city and at the same time respond to the current demand for both quality housing and modern working spaces," says Petr Pospíšil. In the Obřany district, the developer is reconstructing a chamber house from 1922, where 10 flats with a layout of 2+kk and 2+1 with the possibility of adapting the layout to 3+kk and with sizes ranging from 45 to a generous 90m2 are available to the new owners within the Fryčajova project. The lofts on the top floors are ready for possible future construction. There is a cellar, a bike/coffee room and also three non-residential units designed for example for a workshop, warehouse or retail space for running a shop.

At the same time, PSN is working on the transformation of a large brownfield site in Plynárenská Street into a multifunctional complex Brno Jedna, which will include the construction of new apartments and commercial units. "We have done a really great job over the last year. Thanks to this, we have managed to increase the occupancy of the Brno Jedna complex to the current 85% and we are targeting 95% by the end of the year. Some parts are undergoing natural modernisation, others are planned to be developed as follow-on developments. I believe that this year we will achieve our goal, i.e. the building permit for the first phase of a residential project with modern architecture and practical apartment layouts. At the same time, we have opened a debate on urban planning and the preparation of a study of the development of the entire area, within which we want to support sports or culture," says Petr Pospíšil, adding that he is also interested in the future plans of PSN in Brno: "We are also preparing the reconstruction of an apartment building on Antonínská Street and taking over an empty warehouse complex in Komárová, which we are beginning to offer for rent. On Juliánovské náměstí we have been keeping the occupancy rate of offices and commercial units in the multifunctional building above 90% for a long time, and on Kaštanová Street we are finalizing the division of the complex into smaller units, i.e. separately into halls and land."

At the same time, PSN is also actively looking for other interesting opportunities in the Moravian capital: " In terms of acquisitions, we are keen and are considering every offer that comes our way. We finance transactions from our own resources, so we are quick to react and pay for deals. This is a huge advantage for us."