Brno residential prices hit CZK 80,000 per sqm

Prices for new flats in Brno have reached CZK 80,000 per square meter, but this hasn't killed off demand. A total of 459 flats were sold in the first six months of 2019, writes Czech News Agency (CTK), citing figures from the investment group Trikaya. That's nearly twice the number sold during the first half of 2018. "The biggest interest is consistently in smaller flats," says Trikaya's CEO Alexej Vesely. "In the last quarter, every third flat sold in Brno was a one-room unit." Prices, in the meantime, have risen 13 percent over the past 12 months, meaning that the average one-room flat in the city now costs. CZK 3.1m. Rising prices for land and construction work is keeping pressure on developers to raise their selling prices. "In the coming months, we expect prices to continue rising for new flats and that rents will increase," said František Šudřich, who is sales director at Trikaya. "There will be a few cases where prices fall if the seller is unable to sell a specific property." If the city's master plan is approved by 2022 as expected, this could also help open up new locations for residential development and provide some relief on the upwards pressure on prices.