Brno Property
Brno is one of the few places in the Central and Eastern Europe where you can still combine great capital growth and excellent rental potential.
Although we have seen Brno hitting around an estimated 30% for the last couple of years, it still hasn't peaked yet. There's still plenty of room for growth in the market because the demand far outstrips the supply.
As Brno is still an emerging market there are still areas of the city, such as Žabovřesky, which are relatively untouched by developers. Providing these areas have infrastructure in place, such as transport links, then they are a perfect investment opportunity to maximise capital growth.
Brno is now economically stable and has stepped out of the shadow of Prague. Its economy is totally independent of Prague and it is not dependent on the success of the capital city to secure its own future.
This is because we are seeing a ripple effect from the Czech capital out to the surrounding second- and third-tier cities. But the key to Brno's success, and its future growth, is its unique position on the border, which makes it a key logistical location.
Now, we are starting to see companies with a Prague head office moving their logistics, IT and research and development operations out to Brno, where they can also take advantage of a highly-educated workforce.
The impact on the property market is that local people, particularly the upper middle class, are now driving the property market as they search for suitable new builds.
BRNO KEY FACTS
It is the second largest city in the Czech Republic and is the top destination for high-end foreign direct investment in IT in Central and Eastern Europe.
Brno is the administrative capital of South Moravia and produces more than 50% of the region's GDP, which is equivalent to more than 10% of the Czech Republic's total GDP.
Major employers in Brno include Siemens, Vodafone, Honeywell and IBM.
Brno is strategically located 200 kilometres from Prague, just two hours by car; and Vienna and Bratislava, only 90 minutes' drive away.
There are an estimated 60,000 students in Brno, the largest concentration outside Prague, at leading universities including
the Brno Technical University and Masaryk University.
Winner of a European Cities of the Future 2006/07 Award from FDI magazine, part of the Financial Times Group. Brno impressed judges in the Eastern European category with its economic-development strategy.