Apartment prices continue to skyrocket. After years of stagnation, prices in the midst of a pandemic are recording their first increases. And there is no stopping. On the contrary. In just one year, the price per square meter has risen by almost 450 BAM.
According to the Agency for Statistics of Bosnia and Herzegovina, the average price of new apartments at the beginning of this year was 2,248 BAM per square meter. That is 23 percent more than the average price of apartments in 2021. If we compare only the first quarter of 2021 and 2022, then the difference is almost 25 percent, where we come to those 450 BAM.
For the sake of comparison, the price of new apartments in 2018 was 1,613 BAM. Which would mean that today a square meter of new construction, compared to pre-pandemic times, is 635 BAM more expensive. Practically, that amount is higher than the lowest net salary in the Federation of BiH, which currently amounts to 543 BAM. And the square this year is more than two average salaries in BiH.
BH citizens paid more, but also bought more – so the number of new apartments sold at the beginning of this year, compared to the first quarter of 2021, increased by 1.5%, 627 apartments were sold.
If we analyze only the area of the Federation of BiH for the same period, we see that citizens have increased their purchases by 3.9% this year. 265 apartments were sold, the most in the capital of BiH, 117. The average price per square meter was almost 2,400 BAM. In other areas, the average price is almost one thousand and 900 BAM. These are average prices – the more specific ones, ranging from 2 and a half to 6 thousand.
Although the Republika Srpska entity has more favorable apartment prices, in the first quarter of this year, compared to last year, it recorded the highest price increase, by 37%. This resulted in slightly lower sales, by 0.3 percent.
Experts mostly see the reasons for the increase in the price of construction elements. According to the data of the Agency for Statistics of BiH, in a year, the price of construction land increased from 185 marks to 226, on average. The cost of construction and the profit of the contractor increased to one thousand 426, while other costs increased to 596 BAM.
Apartment prices have also risen due to real estate investments. This has increased demand, which is not currently accompanied by supply. But it is not only our country that is struggling with this real estate market. An increase in apartment prices was also recorded in the countries of the region – about 30 percent compared to the previous period. However, the purchasing power of BiH citizens should also be taken into account. That is why most, however, decide to rent apartments, Federalna writes.