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 located in the middle of three regional capitals - Prague, Bratislava and Vienna and therefore experiences a large amount of passing trade from the other countries. It has a population of around 360,000 people. The city has recently won an award as Eastern 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 including the technical university (VUT), which is only 10 minutes walk from the development.

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

The economy has grown steadily since the 1980’s however asset prices are still low 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 lovingly restored building prior to WWI. The city is also extremely cosmopolitan with all the well known high street brands.

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

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

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

The city of Brno has won the competition for European City of the Future for both 2004/2005 and 2005/2006 which is organized by the prestigious FDI magazine, 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 and economic centre of the Moravian region, has seen rapid and sustained economic growth in recent years, averaging more than 9% a year for the past decade. Brno pulled ahead on economic development strategy, scoring top marks for investment promotion, clear incentives and public investment projects. It also ranked top for IT and telecommunications."

Swiss company Aguna chose to build their new plant in Brno. The company intends to invest almost 250 million crowns during the first two years. They will be able to employ at least 80 people in production and development of precision instruments. 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 project demonstrates the huge potential of Brno as well as the South Moravian region to attract technically advanced engineering R&D investments.” Daikin Industries Ltd. is a world leader in the production of modern airconditioning equipment 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 very important for the future. The Czech Republic should become the important base for our production for the fast-growing markets of the European Union,“ says Jiro Tomita, General Manager of Daikin Europe, and continues: “The factory in Brno will deliver compressors to our subsidiaries in Plzen and in Oostende, Belgium.

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

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

The world’s largest airline, Lufthansa from Germany, has opened a new shared services 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 to 100 people. “Central and Eastern Europe is a strategic market for us where we plan in the coming years to double the volume of our activities,” commented Stephan Semsch, Lufthansa’s Director for Central and Eastern Europe, and added: “We thoroughly assessed 30 possible localities in total and ultimately chose Brno for its strategically favourable position within the region and its proximity to the important airline hubs of Munich and Frankfurt. Other great advantages of the Czech Republic are its membership in the EU, quality telecommunications and technical infrastructure and the motivated, qualified and cost-effective work 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 excellent time to be investing.

The Development we have Selected - Development Overview

Great buy-to-let opportunity, benefiting from the growth of Brno Off 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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