Brno Property Investment

Why the Brno property market?

Where do we start?!

Brno is the second largest city in the Czech Republic and it is strategically locatedin the middle of three regional capitals - Prague, Bratislava and Vienna andtherefore experiences a large amount of passing trade from the other countries. Ithas a population of around 360,000 people. The city has recently won an award asEastern Europe’s (Visegrad) “European Cities & Regions of the Future 2006/07”and has seen sustained economic growth.

For our latest Brno property investment opportunity, download at Exclusive New Brno Deal

The city Brno is known particularly for a high number of the universities includingthe technical university (VUT), which is only 10 minutes walk from thedevelopment.

Being the business capital of Moravia it boasts some big name companies such asIBM, Siemens, Minolta CR, Honeywell Controls and FEI.

The economy has grown steadily since the 1980’s however asset prices are stilllow compared to the UK and demand for Brno property is at a premium.

The city of Brno is full of breath-taking architecture with a variety of lovinglyrestored building prior to WWI. The city is also extremely cosmopolitan with allthe well known high street brands.

In the last 10 years Brno has experienced a large increase in commercial activitydue to the relocation of a number of multinational companies.

A Selection of the Companies relocated to the Brno area – and the reasonswhy!

RyanAir has been flying directly from London to Brno on a daily basis since theend of 2005, and from Dublin since the start of 2006.In 2008 a major motorway is planned to be completed that will link centralnorthern Moravia with Poland making the area more attractive for Polish investorsand traffic.

The city of Brno has won the competition for European City of the Future forboth 2004/2005 and 2005/2006 which is organized by the prestigious FDImagazine, a Financial Times publication, in the category of Visegrad group cities.

It even beat Prague, Budapest, Warsaw and Bratislava in this category.

What was said in 2005/2006: "Brno, the Czech Republic’s second largest city andeconomic centre of the Moravian region, has seen rapid and sustained economicgrowth in recent years, averaging more than 9% a year for the past decade. Brnopulled ahead on economic development strategy, scoring top marks for investmentpromotion, clear incentives and public investment projects. It also ranked top forIT and telecommunications."

Swiss company Aguna chose to build their new plant in Brno. The companyintends to invest almost 250 million crowns during the first two years. They will beable to employ at least 80 people in production and development of precisioninstruments. A large part of the employees will be college-educated specialists.

“The quality level of the work force was the deciding factor for Aguna."They are just as capable and qualified as in Switzerland,” said Tomáš Bohrn,Project Manager at CzechInvest, and added: “This precision engineering projectdemonstrates the huge potential of Brno as well as the South Moravian region toattract technically advanced engineering R&D investments.”Daikin Industries Ltd. is a world leader in the production of modern airconditioningequipment and has set up in Brno creating more than 500 skilled jobs.

“Our decision to invest at first in Plzen and now also in Brno is strategic and veryimportant for the future. The Czech Republic should become the important base forour production for the fast-growing markets of the European Union,“ says JiroTomita, General Manager of Daikin Europe, and continues: “The factory in Brnowill deliver compressors to our subsidiaries in Plzen and in Oostende, Belgium.

Symbol Technologies launched operation of their new centre in Brno for sharedcustomer support and financial services for Europe, the Middle East and Africa(EMEA). Symbol Technologies has already invested more than seventy millionCzech crowns into technological equipment and within three years plans to setaside another almost half a million crowns for wages, training and operation. Thecentre will initially employ 200 people and this number is expected to increase byanother 550 employees.

“We chose Brno for several reasons, namely the good offer of qualified labour, agood site and the good position of Brno in proximity to Symbol’s existing centresand customers in Europe,” said Steve Priestley, Vice President and GeneralManager of Symbol for EMEA.

The world’s largest airline, Lufthansa from Germany, has opened a new sharedservices centre in the Moravian side of Czech Republic. The new centre, in Brno,will assist customers of Central and Eastern Europe. It is expected to employ up to100 people.“Central and Eastern Europe is a strategic market for us where we plan in thecoming years to double the volume of our activities,” commented Stephan Semsch,Lufthansa’s Director for Central and Eastern Europe, and added: “We thoroughlyassessed 30 possible localities in total and ultimately chose Brno for itsstrategically favourable position within the region and its proximity to theimportant airline hubs of Munich and Frankfurt. Other great advantages ofthe Czech Republic are its membership in the EU, quality telecommunicationsand technical infrastructure and the motivated, qualified and cost-effectivework force.”

The Czech Republic and Brno in particular is clearly a city that is going places, and the Brno property market offers terrific potential.

All indications strongly point that way and economically this is an excellenttime to be investing.

The Development we have Selected - Development Overview

Great buy-to-let opportunity, benefiting from the growth of BrnoOff plan investment - to complete end of Q1 2009

Rental yields (gross, including parking) expectations up to 8%

Average unit price inc parking £59,000

LTV's expected up to 90% for non-resident purchasers.

No local capital gains tax if held for 5 years

Expected capital growth of 15 % per annum.

Good public transport connection to the city centre 10 minutes away

Close to all main highways to Prague, Vienna, Bratislava and Budapest

When identifying a development, the key factor has to be what value can we secure the apartment at, and the second is what payment terms can be negotiate.

Well on this Brno property deal we are pretty pleased with what we have negotiated!

The price per m2 – the most important factor – is 20% lower than similar developments in terms of build quality and distance from the city.

In terms of payments in and payment plan we have negotiated a deal far better than any comparables – just 7% down now, and remainder on completion!

For the full Brno property investment opportunity, download at Exclusive New Brno Deal

This deal is selling out quickly, and no wonder with such low deposits, for full availability, call us on 0115 947 4155 or email us at info@property-investment-deals.com

For all information on all our Czech and Brno property deals, go to Czech Republic and Brno Property information!

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