Lower apartment prices in our country are just a wish for now. Real estate prices are also rising this year. Data from the Agency for Statistics of Bosnia and Herzegovina (BiH) confirm this, which shows that the price of new apartments sold per square meter in the second quarter of this year amounted to 2.603 BAM. Compared to the same period last year, this is an increase of five percent. Judging by the estimates of real estate agents, those who have decided to buy an apartment – do not have much reason for optimism.
You’ve decided to buy an apartment. You’ve set your requirements and started looking. Soon you’ll be in for an unpleasant surprise. Depending on the location and the square footage, you will have to spend an average of five percent more than you would last year. And it doesn’t end there, because prices are rising day by day. Thus, a square meter apartment in Tuzla, in a new building, costs from three to five thousand BAM. The prices are the same in Mostar, while the prices of a square meter apartment in Sarajevo go up to 8.000 BAM. How to buy an apartment with BiH salaries?
“Rent is now a minimum of 500 BAM. For anyone who can take out a loan, it is still worth it to buy an apartment regardless of how expensive it is. When you take out a loan, you pay installments and live in your apartment. At least this way you are not a tenant,”
“There should be more incentives with a slightly larger sum of money than has been the case so far.”
“Too high. Generally a disaster. The shortest possible answer – disaster”.
The difference in prices is determined by the location, the city, the reputation of the investor, new construction or old construction. It is interesting, however, say the agents, that there is no lack of interest. There are more and more people who want attractive real estate despite the high prices. Does this support the thesis that the trend of investing in real estate is increasingly popular in our country as well?
“A new trend in real estate sales has appeared, a new group of buyers. These are people who want quality, attractive real estate, luxury, and exclusive apartments – and they are ready to pay much more. The purchasing power of that group of buyers is even greater – in Tuzla, it happened a month or two ago that an apartment was sold for over a million BAM,” says Abdulah Kapic, a real estate agent.
The capital of our country is particularly interesting for potential buyers, but also for investors. Data show that the BiH diaspora continues to invest large amounts of money in real estate, mainly newly built apartments. The demand is so high that it is difficult to keep track of it.
“At the moment, the supply is slightly lower than the demand, if we are talking about Sarajevo itself. In Sarajevo, not much is being built considering this is the capital city, a city that has so much demand. The tradition of the people from this area is to save in real estate,” points out Spaho Ljajic, a real estate agent.
Those who can, save. Let’s go back to the beginning of the story. Those with average incomes in our country, with these apartment prices, can hardly solve their housing problem, and they don’t even think about investing in investments. Inflation, an unsafe environment, and slow administration are some of the reasons why larger residential complexes are not built, which could contribute to lower prices for end buyers.
