Brno mortgages and flat prices – Real Estate Week 26 Oct 2026

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.

Last week was about one word: more expensive. Czech mortgages got pricier again in October and economists do not expect it to stop there. Meanwhile flat prices in Brno rose by almost a tenth in a year — but listings in South Moravia are piling up and there are fewer buyers with a mortgage.

On top of that: a new law changing the rules on "getting your interest back", and one December trick with the land registry that most sellers have never heard of. All the hard numbers are at the end.

Czech mortgage rates in October 2026: 6% in sight

Most banks raised their rates again in October, mainly on three- and five-year fixed periods. Komerční banka's five-year fix is now above six percent, ČSOB just below. At the other end, Fio banka and Moneta keep their rates under five percent. Česká spořitelna, Fio and mBank changed nothing.

The outlook? Not cheerful. The market rates banks use to fund mortgages have jumped by about one and a half percentage points since the start of the conflict in the Middle East. Competition has stopped banks from passing all of it on so far. The chief economist of Patria Finance therefore expects the average new mortgage rate to approach six percent. The last time we were there was 2022–2023, when the market cooled noticeably.

What it means for buyers

• Shop around instead of mourning the rate. The gap between the cheapest and the most expensive offer is now over a percentage point. On a typical mortgage that means thousands of crowns a month.
• Watch how long your offer is valid. If your mortgage is approved and the rate is guaranteed, do not leave signing "until after Christmas".
• Waiting for prices to drop makes little sense. The same economist expects slower growth, not falling prices. A higher rate can cost you more than any discount saves.

What it means for sellers

Every tenth of a percent on the rate means a buyer the bank lends a bit less to. Your flat is not sold by the listing; it is sold by what passes the bank's valuation and the buyer's budget. Pricing "with room to haggle" right now risks nobody calling at all.

Flat prices in Brno in Q3 2026: +9% and more listings

Fresh Videobydlení.cz data show that older flats in Brno rose 9% in a year. Brno keeps the second-highest price level in the country after Prague. More affordable cities — Ostrava or Ústí nad Labem — are rising faster, as buyers priced out of the big cities move there.

The more important part is elsewhere. According to Sreality.cz, asking prices for flats have barely moved since spring. And the South Moravian Region is seeing a marked rise in new and active listings — as are Prague and the Moravian-Silesian, Olomouc and Zlín regions. Videobydlení adds that since September interest in large 3+1 and 4+1 flats in bigger regional cities has clearly faded.

What it means for sellers in Brno

• Small flats still sell well. Studios and two-room flats find buyers even with pricier mortgages.
• A large flat is selling into weaker demand. With three rooms and more, expect a longer sale and a buyer who negotiates.
• More listings mean more comparison. Buyers now see five other flats next to yours. Condition, photos and above all a price based on real sales, not on neighbouring listings, decide.

Want to know what your Brno flat would really sell for today? I will work it out from actual sales nearby, not from wishful thinking.

What it means for buyers

For the first time in a long while you have a choice. With larger flats and flats that have been listed for a while, there is room to negotiate. Just note: prices in Brno are still rising, only more slowly. Do not expect a clearance sale.

Czech consumer credit law amendment: no more "interest back" on repaid mortgages

The Chamber of Deputies passed an amendment that changes something you may know from "we will get your interest back" adverts. Until now, if a lender failed to assess properly whether you could repay, the contract could be void — and you only had to return the principal, without interest. Some people tried this even on loans they had repaid without any trouble.

Under the amendment, anyone who repaid a mortgage properly for at least a year and a half is presumed to have been able to repay. People who genuinely could not afford the loan and whose bank overlooked it stay protected — they will just have to prove it in court. The amendment still has to pass the Senate.

For buyers with a mortgage: in practice nothing changes for you. Keep paying as agreed. Just expect "we will recover your mortgage interest" offers to become less and less realistic.

In brief: Collection of Laws, maps and building offices

• The Collection of Laws published an amendment to the decree on regional digital technical maps, effective 18 November. It concerns authorities and utility network operators — nothing changes for buying or selling a flat.
• The Ministry for Regional Development announced planned outages of the building permit and spatial planning systems. If you have a building procedure under way, expect it may stall for a few days.
• The Financial Administration, the Czech National Bank and the Constitutional Court published nothing last week that directly concerns buying, selling or renting property. The CNB will decide on its base rate in November.

Did you know? Selling a property at year end: who pays next year's property tax?

💡 Did you know? A phone call from last week. A lady is selling a flat in Žabovřesky, the buyer is lined up, signing in December. "Do I have to pay property tax for next year too, when I won't own the flat in January?"

It comes down to one day. Czech property tax is paid by whoever owns the property on New Year's Day. All of it, for the whole year. No splitting by months.

Now the surprising part. The land registry may only record the new owner in January. But what counts is not the day of the entry. What counts is the day the application for registration reaches the land registry. If it arrives in December, the buyer is the owner from that day — even if the registry shows it only after New Year.

So: application at the registry before New Year's Eve = the buyer pays next year's tax. Application after New Year = you pay it. For a flat that is practically no longer yours.

The difference is a few days and one envelope. It is usually not tens of thousands, but it is money thrown away for nothing.

What to do: Selling at the end of the year? Agree with the buyer and with the lawyer or bank handling the deal that the application for registration reaches the land registry before the end of December. Sort it out before the deadline gets lost between Christmas parties.

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.

Two of this week's topics are worth a note if you are an expat. Rising mortgage rates hit foreign buyers harder, because banks often ask non-EU applicants for a bigger deposit — shop around even more carefully. And the year-end property tax rule applies to everyone who owns Czech property, wherever they live.

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. Compare several banks.
• 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.
• Renting works the same for everyone. The Civil Code protects tenants equally. Ask for a written lease, a handover protocol with photos, and a receipt for the deposit.
• 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

Bank mortgage rates in October 2026 (minimum advertised rates as of 23 Oct 2026)

• Lowest: 1-year fix Moneta 4.69%, 3-year fix Fio banka 4.78%, 5-year fix Fio banka 4.88%.
• Highest 5-year fix: Komerční banka 6.29% (from 6.04%), ČSOB 6.19% (from 5.99%).
• Komerční banka 3-year fix 5.94% (from 5.69%); Partners Banka 3-year fix 5.69% (from 5.29%, i.e. +0.40 pp).
• Unchanged: Česká spořitelna, Fio banka, mBank.
• Gap between the cheapest and the most expensive 5-year fix: 1.41 percentage points.
• My own model calculation: a CZK 5 million mortgage over 30 years costs about CZK 26,480 a month at 4.88% and about CZK 30,920 at 6.29% — a difference of roughly CZK 4,440 a month.
• Source: Hypoindex.cz — current mortgage rates overview (CZ)

Mortgage rate outlook (Dominik Rusinko, chief economist, Patria Finance)

• The 3-year CZK swap rate has risen by about 1.5 pp since the start of the Middle East conflict, to roughly 4.9%.
• If market rates hold, the average rate on new mortgages will approach 6% (last seen in 2022–2023).
• He does not expect property prices to fall, but growth to slow. He also mentions the CNB's tighter limits for investment mortgages and rising construction, including in Brno.
• Expectation: the CNB will raise its base rate to 4.0% in November (currently 3.75%, left unchanged on 17 Sep 2026). This is an economist's forecast, not a CNB decision.
• Source: Hypoindex.cz — Even pricier mortgages ahead (CZ)

Prices of older flats, Q3 2026 (Videobydlení.cz)

• Brno: CZK 126,358/m², year on year +9%. A model 80 m² flat therefore comes to about CZK 10.1 million (my own calculation).
• Prague: CZK 159,820/m² (+6%); Ústí nad Labem: CZK 51,346/m² (+16%, −4% quarter on quarter); Ostrava +14%.
• Czech median: just over +10% year on year.
• Demand for 3+1 and 4+1 flats in larger regional cities about 15% lower year on year since September.
• Source: Hypoindex.cz — Regional flats catching up with Prague (CZ)

Asking prices of flats, Q3 2026 (Sreality.cz)

• Average asking price in Czechia CZK 91,643/m², year on year +9% (Q2: +13.3%).
• Biggest rises: Vysočina, Central Bohemian and Ústí regions (about +13%); smallest: Prague (+5%).
• Asking prices peaked in spring 2026 and have barely moved since.
• Marked growth in active and new listings: Prague, South Moravian, Moravian-Silesian, Olomouc and Zlín regions. The source gives no separate figures for South Moravia.
• Source: Hypoindex.cz — Growth in asking prices slows (CZ)

Consumer Credit Act amendment (passed by the Chamber of Deputies)

• Rebuttable legal presumption of creditworthiness: for consumer loans if properly repaid, for mortgages if repaid properly and on time for at least 18 months.
• The presumption can be rebutted in court; protection for consumers who objectively could not repay remains.
• The amendment goes to the Senate; it has not yet been published in the Collection of Laws.
• Source: Hypoindex.cz — Repaid loan no longer means interest back (CZ)

Property tax when selling at year end (Did you know?)

• The taxpayer of Czech property tax is the owner as of 1 January of the tax period (Act No. 338/1992 Coll., on Real Estate Tax).
• The legal effects of registration in the land registry arise on the day the application for registration is delivered to the land registry office (Act No. 256/2013 Coll., the Cadastral Act).
• If the application is filed in December and the entry is made in January, the new owner files the tax return by the end of the third month after the month in which the entry was made.
• Sources: Financial Administration — Real Estate Tax (CZ), Real Estate Tax Act (CZ), Cadastral Act (CZ)

Legislation and authorities

• Decree No. 193/2026 Coll., amending Decree No. 393/2020 Coll., on the regional digital technical map; effective 18 Nov 2026. Source: zakonyprolidi.cz
• Ministry for Regional Development: planned outages of building and planning systems (CZ) (22 Oct 2026).

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If you are dealing with a sale or purchase in Brno or South Moravia, or just want to know whether selling this year still pays off, get in touch. The first consultation is free and does not commit you to anything.

Pavel Maloušek, Realiťák Brno