Welcome to another Real Estate Week — my Monday look back at what happened on the Czech property market, with a focus on Brno and South Moravia.
This week was about two numbers: mortgage rates are the highest in two years, and flat prices in Brno are drifting further away from Prague. Plus the biggest cooperative housing project in modern Czech history broke ground right here in Brno.
Written plainly, no scare tactics. All the hard numbers and sources are at the end.
Czech mortgage rates in September 2026: the 6 % barrier fell
It was only a matter of time. This week Komerční banka became the first Czech bank to push a five-year fixed mortgage above 6 % — to 6,04 %, to be precise. The average offered rate climbed to 5,51 %, the highest level in two years.
What interests me more than the psychological milestone is that the gap between banks is widening. Some banks raised rates in September, others went the other way and cut them. The spread between the cheapest and the most expensive five-year fix is now almost 1,2 percentage points. That is real money.
On an 8-million-crown mortgage, one percentage point of difference in the rate costs you roughly what you would save by haggling several hundred thousand off the purchase price. Negotiating a better rate takes one meeting. Negotiating half a million off a flat rarely does. Visit three banks before you start visiting flats.
What it means for buyers
Do not panic-buy "before it gets worse". The increases are gradual and, crucially, uneven — which is exactly why comparing lenders pays off right now. And remember that a fixation is not a life sentence: if you are borrowing in an expensive period, a shorter fix keeps the door open to refinancing in a few years.
What it means for sellers
Interestingly, more expensive mortgages have not killed demand. According to a September survey among new-build buyers, over 80 % still finance the purchase with a loan and only 10–15 % pay cash. Buyers also decide fast — typically after one or two viewings and within two weeks.
Read it this way: whoever shows up at a viewing today is usually pre-approved and serious. You do not need to fear that rates will scare buyers off. But those buyers have calculated their ceiling to the last crown, and an overpriced listing filters them out before they ever call you.
Flat prices in Brno: Prague passed CZK 150,000 per m²
A new analysis of second-hand flat sales, based on Land Registry data, brought numbers that we in Brno read with mixed feelings. In Prague, the average price of an older flat exceeded CZK 150,000 per m², while Brno sits between CZK 115,000 and 120,000. The rest of the country is around CZK 60,000–65,000.
So Brno remains clearly the second most expensive city in the country, far ahead of everywhere else — but it fell further behind Prague. And there is one more signal: while sales of older flats grew across the Czech Republic this year, in Brno they dropped by roughly a tenth.
Fewer transactions does not automatically mean cheaper flats. It mainly means the market is slower — buyers take their time, compare, and calculate. If you are selling this year, plan for a longer time on the market than two years ago and do not let it rattle you.
For buyers in Brno this is the best news in a long while: fewer sales with steady supply means more room to negotiate, especially on flats that have been listed for a while.
Not sure what your flat would actually sell for today? I am happy to value it based on real completed sales in your neighbourhood, not on asking prices from the portals.
Cooperative flats in Brno: construction started at Kamenný vrch
Now the best local news. On Thursday 24 September, construction of Kamenný vrch II in the Nový Lískovec district symbolically began — and by Czech standards it is an event. It will bring 353 flats, 280 of them cooperative, with the rest rental flats owned by the City of Brno and the city district. The bank lent the cooperative CZK 1.71 billion and the total investment exceeds CZK 2.2 billion. Completion is planned by 2030.
It is the largest municipal cooperative housing project in modern Czech history. The model is simple: a housing cooperative builds the flats, its members contribute deposits, and a loan covers the rest. You do not buy the flat into personal ownership — you buy a share in the cooperative with the right to occupy a flat.
Why it matters even if you are not buying there
353 flats will not flip the Brno market on their own, and 2030 is a long way off. But it is a signal: the city is looking for a way to deliver housing to people who cannot reach a standard mortgage, and it found a model that banks are willing to finance. If it works, more projects will follow. For Brno, where the shortage of new construction is the main driver of high prices, that is good news.
💡 Tip of the week: If you are house-hunting in Brno and a mortgage is a stretch, do not overlook cooperative flats. The entry deposit is typically lower than a mortgage down payment and the monthly payment tends to be lower too. The trade-off is less flexibility — transferring your share and subletting both need the cooperative's consent, and financing has its own rules. Read the cooperative's bylaws before you read the price list.
New normative rent from 1 October 2026
One practical note for landlords. From 1 October to the end of 2026, new normative rent amounts apply. This is the ceiling up to which rent counts towards the state social housing benefit. For Brno-město it runs from CZK 11,331 for a one-person household to CZK 15,710 for a household of five or more; the amounts are higher for vulnerable households.
If you rent to a tenant who qualifies for the benefit, it is worth knowing this threshold — rent above it comes out of their own pocket, which raises the risk of arrears. Exact figures and the link to the regulation are below.
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 evergreen basics still hold:
- Anyone can buy. Since 2011 there is no restriction based on citizenship or residence for buying flats, houses or land in the Czech Republic. A non-EU citizen with no Czech residence permit can buy a flat in Brno on the same terms as a Czech buyer. Agricultural and forest land has its own rules, so check before you buy.
- Mortgages are a different story. Banks are free to set their own conditions and they do differentiate. EU citizens usually get close to Czech terms; non-EU applicants are often asked for a permanent or long-term residence permit, a longer income history in the Czech Republic, and a bigger deposit. With rates where they are now, shop around — as the numbers below show, the spread between banks is unusually wide.
- Income in a foreign currency is a handicap. Czech mortgages are in CZK. If you earn in euros or dollars, banks tend to discount that income and you carry the exchange-rate risk on every instalment.
- Cooperative flats are harder to finance. With a cooperative share you are not buying real estate you can pledge, so a standard mortgage usually does not apply and fewer banks will lend. If you are a foreigner considering the cooperative route, confirm financing with a bank before you sign anything.
- Always verify with a Czech lawyer and your bank. Rules on residence, taxation of rental income and the mechanics of escrow accounts change, and your personal situation matters more than any general article. I can recommend people in Brno who work with foreign clients regularly.
For those who like numbers
Mortgage rates (as of 24 September 2026)
- Average offered rate (Swiss Life Hypoindex): 5,51 % — the highest in two years, up 0,62 percentage points since March.
- Five-year fix: Komerční banka 6,04 % (first bank above 6 %), ČSOB/Hypoteční banka 5,99 %, mBank 5,79 %, Česká spořitelna / Partners Banka / Raiffeisenbank 5,59 %, UniCredit Bank 5,49 %, Moneta Money Bank 4,89 %, Fio banka 4,88 %.
- Three-year fix: Komerční banka 5,69 %, ČSOB / mBank 5,59 %, Česká spořitelna 5,39 %, Raiffeisenbank 5,34 %, Partners Banka 5,29 %, Air Bank / UniCredit Bank 5,09 %, Moneta Money Bank 4,79 %, Fio banka 4,78 %.
- September cuts: Moneta Money Bank (−0,20 p.p. across all fixations), UniCredit Bank (−0,10 p.p. on three- and five-year), Partners Banka (−0,10 p.p. on one-year).
- Source: Hypoindex.cz — overview of current mortgage rates
Buyer behaviour
- Over 80 % of buyers finance the purchase with a mortgage; 10–15 % pay cash.
- A typical buyer needs 1–2 viewings and decides within 1–2 weeks.
- Source: survey by developer MS-INVEST, via Hypoindex.cz
Second-hand flat prices and sales (January–July 2026, Land Registry data)
- Prague: over CZK 150,000/m²; Brno: CZK 115,000–120,000/m²; other regions: CZK 60,000–65,000/m².
- 28,571 older flats sold across the Czech Republic, +3 % year on year (+20 % versus 2024).
- Transaction counts: Prague flat, Brno −11 %, rest of the country +5 %.
- Average sale price in July CZK 5,130,000 (an all-time high), median CZK 4,300,000.
- Source: MAXIMA REALITY analysis of Land Registry data, via Hypoindex.cz
Kamenný vrch II, Brno – Nový Lískovec
- 353 flats in total: 280 cooperative, 54 rental flats owned by the City of Brno, 19 rental flats owned by the Brno – Nový Lískovec district.
- ČSOB loan to the housing cooperative CZK 1.71 bn; total investment over CZK 2.2 bn (construction work CZK 2.099 bn excl. VAT). Contractor: STRABAG and SYNER.
- Construction started 24 September 2026, completion planned by 2030.
- Source: Hypoindex.cz
Normative rent for 1 Oct – 31 Dec 2026 (Brno-město)
- Standard household by number of members: CZK 11,331 / 13,548 / 15,100 / 15,710 / 15,710.
- Household where all members are vulnerable persons: CZK 14,910 / 17,270 / 19,230 / 20,370 / 20,370.
- For comparison, Brno-venkov (standard household): CZK 9,148 / 12,840 / 14,600 / 15,552 / 15,745.
- Source: MPSV Notice No. 169/2026 Coll.
Have a good week. If you are buying, selling or just want to know where you stand on price in Brno or South Moravia, get in touch — the first consultation is always free and commits you to nothing.
Pavel Maloušek, Realiťák Brno