Big brands are heading to the center of Brno, property prices are not rising yet

    BRNO - International brand retail chains are increasingly looking for spaces in the center of the South Moravian metropolis. The Czech News Agency (ČTK) was informed by the company Cushman & Wakefield Healey & Baker (C&W/H&B), which specializes in the leasing of shops in city centers. According to them, property owners, customers, and the city all benefit from this trend. However, real estate agents are cautious. They believe this trend has not yet impacted property prices in central Brno.
    The era when Brno's shops and services concentrated in shopping zones on the outskirts may soon be over, according to experts. Renowned names from the fashion and restaurant industries are now seeking their new customers in urban centers. The main factors are the purchasing power of residents, awareness of global brands, and a sufficient supply of quality goods.
    “The center of Brno now meets these demanding requirements and is becoming an attractive destination,” said Jan Kotrbáček from C&W/H&B to the ČTK. However, Brno real estate agents are more cautious. They believe the time when the city meets all demanding criteria is still far off. The current interest from large companies is thus not yet substantially reflected in the actual real estate market.
    “Prices for commercial spaces are not significantly increasing yet. The upward trend is long-term, but it is slowing down,” explained commercial space specialist Petr Nečas. He added that a shop in the center, which approaches the ideal, now costs about 20,000 crowns per square meter per year.
    According to Kotrbáček, the trend of large brands in the center will continue in the coming years. For example, the fashion house Zara is planning to open in the South Moravian metropolis in the first half of next year. This brand's clothing is currently only available in Prague in the Czech Republic. “But this is not the only interested party,” Kotrbáček added, noting that C&W/H&B has a list of companies planning to enter the Brno market and are currently looking for suitable and quality locations.
    “Brno is certainly interested in attracting more retailers and is ready to assist with any potential issues related to land,” said city hall spokesperson Pavel Žára. According to him, such situations have occurred many times in the past. One of the latest examples is the Vaňkovka shopping gallery, which was built this year next to the tighter city center.
    According to an analysis commissioned by Brno every three years, retail shops occupied about 513,000 square meters in the city in 2003. This is double the amount in 1997. The city hall plans another such survey for next year.