The ABSL Association presented the results of the market survey of the Business Services segment in Brno. These results indicate that there are 15,000 employees in this segment in the Moravian metropolis, which is nearly 6% of all productive citizens of the city and simultaneously 22% of the entire Czech Business Services market. And more growth can be expected, at a rate of roughly 20% per year.
Entrepreneurs and investors rate the central location of the city and also the more affordable rent and generally lower costs per employee than in the capital city very positively. Employees and residents in Brno appreciate the high living standards.
17,500 graduates a year, 17,000 people looking for a job every year.
The 13 local universities are also a source of qualified employees in Brno. These universities have over 70,000 students in total. Over 17,500 graduates with good language skills leave the local university every year. The fact that 57% of the people here of productive age speak English at B2 level or higher and 9% of Brno residents speak German or another European language as well as English on this level, is also worth mentioning, because this is an extremely important prerequisite for the Business Services segment.
Rent is 30% cheaper than in the capital city
The premises available to companies in Brno for their business activities are distinguished by their high-quality, good access and also their very affordable prices in relation to other locations. According to Kevin Turpin of the JLL real estate agency, which was also involved in the survey, there is currently 490,000 m2 of office space in Brno, of which approximately 80% is class A. 67,000 m2 of this space is currently to rent and another 55,000 m2 of office space should be completed this year. There is certainly enough to choose from, but the fact that the average rent for these premises ranges between EUR 8 and 12 per m2, which is approximately 30% less than in Prague where rent ranges from EUR 11 to 19.5 / m2 /month, is also very important.
Salaries are 24% lower than in Prague, but people in Brno still live better.
Employee costs are another important indicator for entrepreneurs. Salaries in Brno are 24% lower than in Prague on average. However, Brno residents don’t have less buying power, because living in Brno is cheaper than in the capital city. The average annual salary of someone living in Brno is EUR 11,770, which is approximately CZK 318,000. The average salary in Prague is CZK 415,000, or approximately EUR 15,388.
More details you can find in the latest press release.