Study: Brno apartment now costs the same as it did in Prague before the pandemic

Prague – Older apartments in Brno have reached the same selling price as a Prague apartment just before the pandemic erupted. In the last quarter of last year, prices for older apartments sold across the Czech Republic rose by 19 percent year-on-year to 46,119 crowns per square meter. This is evident from a study by the real estate group European Housing Services (EHS), which is available to ČTK.

In Brno, older apartments are now selling for over 87,500 crowns per square meter for the first time. Meanwhile, the price of family houses in the South Moravian Region has fallen to around 43,000 crowns per square meter. Brno rents have decreased quarter-on-quarter to 244 crowns per square meter.

In Prague, the average selling price per square meter hovers around 112,000 crowns. Compared to the third quarter, this represents a decline of several hundred crowns. According to EHS, apartments intended for professional investors are becoming less common in the public offering. Their prices in Prague are significantly above the stated threshold.

Rents in Prague have hit a maximum since the outbreak of the coronavirus crisis. The average square meter of apartment is rented for 279 crowns. The growth is, according to EHS, widespread and is primarily driven by inflation.

"The market is beginning to divide into offerings for regular households with clear financial limits and offerings for investors who have no problem overpaying under the current conditions,” stated Hendrik Meyer, head of EHS and the real estate service Bezrealitky. He believes this is a demonstration of the new market reality, which will accompany the entire current year. "Investors are acquiring apartments at greater speed and in even larger volumes, especially with new builds or thoroughly renovated apartment buildings," he added.

The price of family houses in Prague has returned to the usual price level around 88,500 crowns per square meter with a quarter-on-quarter decline of 16.9 percent.

According to EHS, prices in the Central Bohemian Region are currently also hitting the financial capabilities of households. Less accessible mortgages and rising prices of materials and construction work have led to a drop in Central Bohemia prices, both for family houses to about 56,000 crowns per square meter and for apartments with a decline of 2.86 percent to 68,000 crowns per square meter.

In the Krkonošsko mountains, according to EHS, the price increase of resort housing is spilling over to regular apartments that may have recreational use. The average price of apartments in the Hradec Králové Region, at 78,500 CZK per square meter, has become the third highest in the republic after Prague and Brno.

Average year-on-year price increases per square meter of area against the fourth quarter of 2020 – sales and the fourth quarter of 2020 – sales and rentals (in percent).

	House	Apartment	Apartment - rents
Prague	26	11	5
Central Bohemian Region	19	26	4
South Bohemian Region	38	31	14
Plzeň Region	-3	16	2
Karlovy Vary Region	40	27	3
Ústí nad Labem Region	-7	42	6
Liberec Region	21	7	10
Hradec Králové Region	11	42	5
Pardubice Region	15	34	16
Olomouc Region	32	22	5
South Moravian Region	27	28	7
Zlín Region	14	-12	8
Vysočina Region	-4	30	3
Moravian-Silesian Region	-3	50	6
Entire Czech Republic	14	19	4

Source: European Housing Services