The prices of new apartments in Brno are starting to stagnate after the rise

After a shortage of apartments in previous periods, the supply is relatively abundant, with over 600 apartments currently on offer. However, the majority available are more luxurious and therefore more expensive, with an average price of nearly five million. "In the third quarter of this year, new apartments in Brno sold the best so far, with people purchasing 223 of them. The highest demand was for two-room apartments, which sold for an average of 3.78 million crowns," Šudřich noted.

Expensive large apartments, meaning at least three rooms, dominate the supply. While this layout typically accounts for only a third of the offer, it now makes up almost half. The largest supply is in the urban districts of Brno-střed, Bystrc, and Židenice. Cheaper and smaller apartments are lacking because larger developments of residential types have been awaiting approval for several years.

Despite so many apartments being sold in the third quarter as in the entire first half of the year, year-on-year sales are declining. Two years ago, 1,195 apartments were sold in nine months, last year there were 430 fewer, and this year there have only been 452 in total. "Even the last chance to secure a mortgage under older, more favorable conditions did not impact sales as much as was expected. It is apparent that the number of people who can afford apartments in new developments is decreasing," Šudřich stated. In a year-on-year comparison, prices in Brno's new developments increased by 22 percent by the end of September.

The situation is expected to improve with the new zoning plan, which should come into effect in 2022. In addition to administrative delays, rising labor costs, a shortage of workers, and increasing material prices have a significant impact on prices. According to Marek Vintr, president of the Association of Brno Architects and Builders, centralizing fragmented building authorities, which has proven effective in Ostrava and is being discussed in Prague, could help Brno.