• Brno offers strong capital growth, predicted at 30% per annum
• A lead time of 10 months, from exchange to completion, means there is the potential of 25% capital growth from just a 15% deposit (plus reservation fee)
• City Park has been valued at an estimated 9.2% below market valuation in an independent valuation
• Prestigious location in the Villa District, an established upper middle class residential area
• Exclusive deal for Property Secrets’ clients – the rest of the development sold out to the local market within two months
• Prime commuter area – 10 minutes to the city centre and just five minutes from the D1 Motorway to Prague, Vienna and Bratislava

City Park is a high-spec development in a city with a strong rental market and availability of good finance - making this a good all round investment opportunity.

Brno has traditionally offered the rare combination of capital growth and strong rentals, but City Park also offers the additional advantage of a prestigious location.

It is perfectly placed in the established residential area known as the Villa District, which is a magnet for the aspirational, upper middle class market. This is a very attractive residential area of Brno, which has traditional older buildings, built in the style of chalets and town houses. There are no panelaks and very little new builds, which is going to remain very tightly restricted because of a lack of suitable plots large enough for development.

This development takes its name from the park area just across the road. This huge expanse of green area, known as Žabovřeska Luka, is currently being transformed into the area’s main recreational park and sports centre; and already includes golf and tennis facilities.

There is already proven demand from the local market. City Park is a small exclusive development of just 45 units, of which 19 have been secured by Property Secrets. During negotiations with the developer, the remaining units sold out to the local market in less than two months.

City Park is just 10 minutes by car from the city centre and only five minutes from the D1 Motorway, which leads to Prague in less than two hours, and Vienna or Bratislava within 90 minutes.

Its strategic location is proving a magnet for international blue-chip companies who are using Brno as a logistics base thanks to its strong border position next to Austria and Slovakia. The impact on the local property market is that an influx of workers from outside Brno, together with a lack of new builds, is driving demand far higher than the current market can supply.

Currently, Brno is recording capital growth of up to 30% per annum and we estimate that, taking into account the supply/demand ratio and rising wages, this will continue for the next three years.

In a rising market, a lead time of 10 months until final payment is due, means investors can take advantage of a potential 25% capital growth from just a 15% deposit plus reservation fee.

The strengths of this deal are that it offers strong capital growth, combined with good rental potential. The independent valuer has calculated that City Park is an estimated 9.2% below the current market value according to an independent valuation. Currently, the only available property to rent in the area is in private ownership.

A further advantage to this deal is that kitchens are included in the price, which presents investors with a turnkey unit, reducing void periods as well as VAT payments.

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