The real estate market in Brno is experiencing a remarkable revival after a period of cooling down. While apartment supply dominates the market, particularly in the broader city center and near universities, family homes in accessible locations remain scarce.
The market has undergone several distinct phases in recent years. Until 2022, it was characterized by high demand, limited supply, and rapidly rising prices. However, a significant turning point came with sharp interest rate increases and stricter mortgage conditions. The market hit its peak during 2020-2021, before being impacted by the Ukraine war, high energy costs, and expensive housing loans.
Now in 2024, the market is showing signs of recovery. Stabilizing interest rates and renewed buyer confidence have led to increased activity. Today’s buyers are more selective and careful, focusing on well-maintained, energy-efficient properties with balconies, terraces, and gardens. Investment apartments are gaining popularity again, despite lower yields than before.
Price-wise, a typical 70-square-meter, 3-bedroom apartment in Královo Pole now costs around 7.5 million crowns, down from its Covid-era peak of 8 million but up from the post-Ukraine war dip to 7 million. Similarly, smaller houses in commutable areas like Šlapanice or Kuřim are now priced between 8.5 and 9.5 million crowns.
Financing patterns have also evolved, with more buyers combining cash payments with mortgages. Young couples often merge mortgage loans with parental support or building society savings. Current mortgage rates hover between 4.5 and 5 percent, a significant change from the historical low of under 2 percent during Covid.