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Hypoindex.cz
Brno new-build prices breach CZK 150k/m² for first time — supply rises, mortgage costs climb
The market shows strong fundamentals and record price levels, but a combination of rising mortgage costs, geopolitical uncertainty, and new investment mortgage regulation introduces clear downside risks to the near-term outlook.
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Hypoindex.cz
PRIMARY SOURCE · [013]
AI SUMMARY · Claude Sonnet 4.6
- 01Average asking price for Brno new-builds reached CZK 154,000/m² in Q1 2026, up 14% year-on-year — the first time in the market's history the CZK 150k threshold has been breached.
- 02Average transaction price (completed sales) stood at CZK 140,600/m², up ~10% YoY, a marked acceleration from last year's ~5% pace.
- 03Q1 2026 saw 377 new-build sales — below the record Q1 2025 but above each of the three preceding quarters; March alone recorded 162 units, roughly 50% above February.
- 04Available inventory rose to 1,887 units (+60% YoY), representing approximately 15 months of supply at the current sales pace — the highest level in several years.
- 05The 5-year interest rate swap rose ~80 basis points over the past month amid Middle East geopolitical escalation; several banks have already raised mortgage rates with more expected to follow.
- 06From 1 April 2026, Czech National Bank guidance tightens investment mortgage conditions: max. LTV 70% and DTI 7× annual income for third-plus properties or buy-to-let purchases.
- 07Investment mortgages account for roughly 9% of newly originated loans — the CNB measure's direct market impact is limited, but may dampen investor-buyer activity in Q2–Q3 2026.
VERIFIED BY SOURCES · 1·CONFIDENCE 88%
ADVISOR CONTEXT
Clients considering a Brno new-build purchase face two conflicting signals: record supply and decelerating price growth favour buyers, while rising mortgage costs (swap +80 bp) and the CNB's April 2026 investment mortgage tightening increase financing costs — particularly relevant for clients with investment intent and LTV above 70%.
Observations for informational use by licensed advisors. Not investment advice under MiFID II.
Sources
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