Apartment rental prices in Brno face a further hike in the near future. High demand for apartments and slow approval procedures for new residential developments are causing ever-increasing prices. Photo: Casadei Graphics
Brno, May 21 (BD) – More and more people are coming to Brno to work and study every year, and housing needs continue to grow with this influx.
According to the Czech residential real estate market study 2018 by Conbiz, a further increase of 7% in new apartment prices is expected in 2018. Alongside high and growing demand for accommodation, the short supply of new apartment buildings is one of the reasons for this increase.
Due to poor approval procedures for new residential developments, the rate at which new apartments are built is quite low. The lack of new apartments affects the resale value of older apartments, causing appreciation. This shortage of new apartments is a big challenge to the high demand for accommodation in Brno.
“The general feeling is that although there has been a steady increase in salaries, they are still behind the fast-rising rent prices,” said Jan Kopkáš, executive manager of Brno Expat Centre.
Kopkáš also stated that, despite the state of the real estate market and rental prices, there has not been any indication of a decrease in interest in Brno on the part of expats.
“Expats usually start searching for accommodation once they have already accepted a job or study offer in Brno. Quite often they don’t start looking before their arrival and only then they are faced with the harsh reality of the current real estate market. By then, they already have obligations tying them to the city and they often have to accept a higher price or lower standard of an apartment,” he elaborated.
“The slow approval procedures of new residential developments are inconsistent with the city’s active efforts to attract more foreign talent to supply the high demand for a qualified workforce. There is certainly a will to change the development strategies in the future,” he added regarding the real estate market in Brno.
Executive director of Foreigners Brno, Aleš Malár believes that, despite the ever-increasing rental prices, Brno is still an attraction for expats.
“I do not foresee a trend of choosing other cities over Brno. Brno is still attracting many international companies, has a great Faculty of Medicine and other features,” stated Malár.
“I think that salaries are commensurate with the rent prices. Quality of life in Brno has been getting better over the past few years. It’s very similar to Prague,” he added.
“I think it is relatively easy to find a flat in Brno, in comparison to Holland. I also think that the prices are affordable,” said Sam Elfvering, a Dutchman who has been living in Brno for over a year.
Sam lives in a private room with a balcony in a shared flat close to the city centre for CZK 5,000 a month. He says that he finds the rent he is paying reasonable for the size of his room and the location of the flat. He was previously living in a flat in Brno for CZK 7,000 per month. He also mentioned that his salary is sufficient to cover his rent.
“However, it is perhaps good to keep in mind that I am from Holland and prices here are in general much lower than in Holland,” he added.
Zana F., from Slovenia, has been living in Brno for a year and half and is living in a flat for two at a rate of CZK 6,000 per month. Before finding this accommodation she was living in a shared room in a flat for CZK 3,100 a month.
Zana also says that she finds the rental prices commensurate with salaries in Brno.
“I have a sufficient income to afford my rent. When I was living in my first flat in Brno, I was a student, and my scholarship was fine for rent. And now I am working and my salary is enough for a rent of CZK 6,000,” she said.
Zana added that when she first came to Brno for a four-month internship, it was difficult to find a short-term room or apartment. But now that she is working in Brno, finding a long-term flat was a much easier experience.
Offering a lower cost of living than most European countries makes the Czech Republic a relatively affordable option despite the ever-rising rental prices. This continuous increase in real estate prices is unlikely to slow down or even stabilize unless approval procedures for new residential developments are improved such that the high demand for accommodation in Brno is met.
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