Brno flat prices and mortgages – Real Estate Week 21 Sep 2026

Welcome to another edition of Real Estate Week — my Monday look back at what happened to mortgages and flat prices here in Brno and across South Moravia over the past seven days. As always, in plain language, with no scare stories. You will find all the hard numbers at the end of the article.

Last week I wrote that mortgages had become more expensive for the sixth time in a row. This week brought the sequel: the Czech National Bank left rates unchanged but kept the door open to a hike, and the first data show that demand for mortgages cooled noticeably in August. On top of that, a few observations on flat prices — including one that concerns Brno directly.

CNB interest rates in September 2026: unchanged, with a warning

On 17 September the CNB Bank Board kept its key rate at 3.75 %. The decision was unanimous and markets expected nothing else. What came afterwards was more interesting: Governor Aleš Michl said that in November the board will be choosing between keeping rates stable and raising them. The reason: the board sees risks tilted towards higher inflation — fast wage growth and expensive oil and energy.

What it means for buyers: do not count on cheaper mortgages before the end of the year. If you are buying a flat in Brno now, calculate your payment at today's rate and keep a buffer in your budget. If you have a pre-approved mortgage, check how long the bank's offer is valid.

What it means if you are refinancing: if your fixed-rate period ends in the coming months, the CNB's November decision may move the market again. Ask for offers well in advance, not in the week your fixation expires.

Czech mortgages in August 2026: a clear slowdown

According to the Czech Banking Association's Hypomonitor, banks and building societies provided 13 % less in new mortgages in August than in July. Both the number and the volume of loans dropped below last autumn's strong levels. The association says it is not just a summer effect — more expensive financing plays a role, and probably also the fact that some investors took out mortgages early, before this year's tighter rules for investment loans.

To be fair: for the year as a whole, mortgage lending is still well above last year. This is not a collapse, it is a cooling after a very strong period. Refinancing, on the other hand, remains above average as fixations agreed in the era of cheap money expire.

What it means for sellers: there are slightly fewer buyers with a mortgage and they calculate more carefully. A reasonably priced flat in good condition will find buyers. A flat priced "with room for negotiation" will wait longer.

Flat prices in Brno: where the market is heading

Jakub Veverka, economist at Videobydleni.cz, expects flat prices to keep rising until the end of the year, but more slowly than so far. He stresses one thing I see in practice as well: the market is splitting. Good-quality, correctly priced flats with good transport links sell quickly with little room for discounts. Flats that need major renovation, have high running costs or are overpriced wait much longer for a buyer. Two- and three-room flats (2+kk and 3+kk) are the most sought after.

And on Brno specifically: according to Borek Simandl, sales director at CREDITAS Real Estate, Brno has much more room than Prague for building on brownfield sites, often close to the city centre. Prague, in his view, has almost used this potential up. Their Brno project Vista Lískovec has sold roughly half of the 260 units in its first phase and is preparing a second phase. Take it as a developer's view, not independent analysis.

What it means for buyers in Brno: new-build supply in the coming years will come mainly from redeveloped areas. If you are not in a hurry, watch what is planned around the location you have in mind — a new district next door can change a flat's value within a few years, in either direction.

What it means for sellers: if you are selling an older flat, expect buyers to compare it with new builds. Technical condition, energy performance and the size of the building repair fund now affect the price more than they did a few years ago.

Housing affordability in the Czech Republic: only 7 % are optimistic

Komerční banka and Ipsos published their Housing Future Index 2026. Of the people who do not live in their own home, only 7 % consider buying a flat or house affordable. Even so, around 1.4 million adults want to buy their own home within five years, and almost a third of people save regularly for housing.

Why it is so hard is also shown by a comparison with Poland published this week by ARETE Real Estate: per capita, Poland completed 83 % more flats than the Czech Republic last year. Czech supply has long lagged behind demand — and that keeps prices high.

What it means for tenants in Brno: according to Videobydleni.cz, rents will keep rising, most of all in Prague, Brno and other strong economic centres. If your lease is ending, start talking to your landlord about an extension in good time.

In brief: legislation and construction

• New state building administration: according to the Ministry for Regional Development, the central Territorial Development Office will start operating in 2027, with regional offices joining from 1 January 2028. The Building Act amendment passed by the Chamber of Deputies on 9 September has not yet been published in the Collection of Laws.
• Building is getting more expensive: construction work prices were 4.4 % higher year on year in August, according to the Czech Statistical Office. If you are planning a renovation or building a house, factor that into your budget.
• Collection of Laws: nothing concerning property, leases or the land register was published this week.

What does it mean for foreigners on the Czech real estate market?

Nothing new specifically for foreigners this week — the same rules apply for Czech, EU and non-EU citizens. The CNB decision, the mortgage slowdown and the price outlook above apply to everyone identically. One small market note: the CREDITAS interview mentions that Brno has a smaller share of foreign buyers than Prague.

Since the question comes up often, here is the evergreen picture that has not changed:

• Who can buy. Any natural person, regardless of citizenship, can buy a flat, a house or land in the Czech Republic in their own name. There is no permit requirement and no residence requirement for ordinary residential property. The same purchase contract, the same cadastral registration and the same rules apply to you as to a Czech buyer.
• Mortgages are the real difference. Banks, not the law, set the limits here. In practice, applicants with EU citizenship and Czech income are treated close to domestic clients, while non-EU applicants are usually asked for a residence permit, income documented in the Czech Republic and often a lower loan-to-value ratio. Bank policies differ significantly, so it is worth comparing several — and with a possible CNB rate hike in November, the gap between offers matters even more.
• Everything runs in Czech crowns. Purchase prices, mortgages and cadastral records are in CZK. If you earn in another currency, the exchange rate is a real risk over a twenty-year loan, and a mortgage in a currency other than your income has its own legal regime and warnings under Czech consumer credit law.
• Get it checked. Contracts and cadastral entries are in Czech and the Czech version is what binds you. Have the purchase contract and the escrow arrangement reviewed by a Czech lawyer, and your financing by your bank, before you sign anything. This article is general information, not legal or financial advice for your specific situation.

💡 Tip of the week

Selling a flat that needs renovation? Do not price it as if it were renovated. Buyers will add up the repair costs — and with construction work 4.4 % more expensive than a year ago, they will add them up strictly. A realistic price from day one saves you months of waiting and later price cuts.

For those who like numbers

I promised hard data — here it is, with sources:

• CNB Bank Board meeting, 17 Sep 2026: 2-week repo rate kept at 3.75 %, discount rate 2.75 %, Lombard rate 4.75 %. The decision was unanimous. Rates were last changed in June 2026 (a 0.25 pp increase). Governor Aleš Michl: in November the board will decide between stability and a rate increase; risks are tilted towards higher inflation (wages, labour market, oil, gas and electricity prices). (source: CNB) (source: ČTK / ČeskéNoviny.cz)
• Czech Banking Association Hypomonitor, August 2026: new mortgages excluding refinancing CZK 26.8 bn, −13 % month on month; 5,825 loans (−13.1 % m/m, −4 % y/y). Including refinancing CZK 34.5 bn (almost −15 % m/m, +4 % y/y). January–August: new mortgages CZK 273 bn (+CZK 68 bn y/y), total CZK 369 bn (+44 % y/y), 58.1 thousand loans (+17 % y/y). Refinanced and top-up loans CZK 7.7 bn, average refinancing rate 4.97 % (almost 0.5 pp higher than a year ago). (source: Hypoindex.cz, 17 Sep 2026)
• For comparison from last week: Swiss Life Hypoindex for September 5.51 %, the highest since June 2024. (source: Hypoindex.cz)
• Flat price outlook (Videobydleni.cz, Jakub Veverka): prices will keep rising until the end of 2026, but at a slower pace; no broad price declines expected. Strongest demand for 2+kk and 3+kk; rents will keep rising, with the greatest pressure in Prague, Brno and other strong centres. (source: Hypoindex.cz, 16 Sep 2026)
• Brno vs Prague (Borek Simandl, CREDITAS Real Estate): Prague is slightly more expensive per m², but its price-to-average-income ratio is more favourable; Brno has a smaller share of foreign buyers; Brno has large brownfield development potential. Vista Lískovec project: phase 1 260 units, roughly half sold; phase 2 will add 140 units. In Prague, 1+kk and 2+kk flats make up 76 % of sales (developer's figure). (source: Hypoindex.cz, 15 Sep 2026)
• Housing Future Index 2026 (Komerční banka, Ipsos): 7 % of people not living in their own home consider buying affordable, 83 % unaffordable; attainability 26 points out of 100, overall index 45 points. About 1.4 million adults want to buy their own home within 5 years, over 2.2 million within 10 years. 77 % expect new builds in large cities to become more expensive over the next 5 years. 59 % of the population live in their own home, 69 % own or co-own at least one property. (source: Hypoindex.cz, 17 Sep 2026) (source: Hypoindex.cz, 18 Sep 2026)
• Housing construction, Poland vs Czech Republic 2025 (ARETE Real Estate): 208,800 flats completed in Poland vs 33,430 in the Czech Republic, i.e. 5.59 vs 3.06 flats per 1,000 inhabitants (about 83 % higher intensity in Poland). Starts: 212,400 vs 35,819. (source: Hypoindex.cz, 21 Sep 2026)
• Construction work prices, August 2026 (Czech Statistical Office, estimate): +0.3 % month on month, +4.4 % year on year (July: +4.5 %); materials and products used in construction +6.8 % y/y. (source: CZSO)
• State building administration (Ministry for Regional Development): the central Territorial Development Office starts in 2027, regional offices from 1 Jan 2028; the transition concerns about 5,500 employees of building authorities and related bodies. (source: MMR, 15 Sep 2026)

A side note: the Financial Administration issued no property-related press release last week, nothing on property, leases or the land register appeared in the Collection of Laws, and none of the Constitutional Court's judgments concerned real estate.

Thanks for reading. See you next week with whatever the market brings.

— Pavel Maloušek, Realiťák Brno