Prague can envy Brno. The prices of new buildings there go against the trend
That the prices of older apartments will go down due to expensive mortgages and their poor availability was estimated by most real estate experts in the year. In the case of new buildings, a large part of them were already more cautious. According to predictions, their price was supposed to rise slightly or stagnate.
Brno’s real estate market with new apartments, however, shows that times are changing here too, and prices may fall, even slightly.
From the data of the company Trikaya, which has been following the market development of the Moravian metropolis for a long time, it follows that the average offer price per square meter of floor space is gradually decreasing – for example, in December, it recorded a month-on-month drop of 1,200 kroner, i.e. no percent.
Average offer price of new apartments in Brno | |
Moon | Price per m² |
01/2022 | CZK 121,047 |
02/2022 | CZK 122,064 |
03/2022 | 126,895 CZK |
04/2022 | 126,722 CZK |
05/2022 | 127,345 CZK |
06/2022 | CZK 127,099 |
07/2022 | 126,292 CZK |
08/2022 | 126,879 CZK |
09/2022 | CZK 126,337 |
10/2022 | CZK 125,428 |
11/2022 | CZK 125,010 |
12/2022 | 123,824 CZK |
Source: Trikaya |
But already in the previous months it showed that the prices had reached a peak and were coming down from it. While prices are still rising, they have already lost steam month-on-month. In 2021, a square meter cost just over 100,000 crowns per square meter, last year the price tag exceeded 125,000 crowns.
“The year 2022 announced the rudder of the development of the average price of vacant apartments in new buildings in Brno. The upward trend, which began in 2016, peaked in the first half of 2022. From CZK 55,600 per square meter, the average price rose to CZK 127,200 within six years. But from the third quarter of 2022, the price started to fall slightly,” confirms Trikaya executive director and chairman of the board Dalibor Lamka.
However, as he adds, the decline does not apply to all types of new construction. “It can be said that less energy-demanding units and those located in sought-after locations withstand the pressure of falling prices better than atypical apartments or apartments with energy label C and worse,” adds Lamka.
More apartments were sold in January of last year than in the entire second half of the year combined.
Behind the price upheavals, which no one would have expected even two years ago, when several interested parties were often waiting for one apartment at the same time, is a dramatic cooling of demand and a slowdown in sales.
“The fourth quarter of the past year confirmed the most significant real estate trend of last year – freezing of the market not only with new buildings. Although from this point of view it was somewhat more successful than the previous quarter, a return to the numbers before the outbreak of the conflict in Ukraine is not yet in sight. This is well illustrated by the fact that more apartments were sold in January of last year than in the entire second half of the year combined,” says Lamka.
In total, 618 new apartments were sold in Brno in the year, i.e. approximately half of the number from 2021. It is interesting that the Prague market was also recorded as significant.
“We will reach approximately three thousand sold units on the Prague market, so by the end of the year it will decrease by more than half. This means that the slowdown is really very significant,” Skanska Residential CEO Petr Michálek said earlier in an interview for Seznam Zprávy.