Apartment prices in Bosnia and Herzegovina have reached record highs, with the price per square meter in some cases climbing to as much as 11,000 BAM, while the average remains significantly lower. Despite widespread concern among experts and the public that prices are abnormally high, no decline is expected in the near future. On the contrary, demand continues to grow, and sales show no signs of slowing.
Construction activity across the country is ongoing, yet affordability remains a major issue. Purchasing an apartment of up to 50 square meters without at least 200,000 BAM has become nearly impossible. The real estate market continues to record steady growth, but rising prices are increasingly worrying citizens.
Experts point out that prices vary greatly depending on location, making it difficult to determine a precise national average. In Sarajevo, according to real estate expert Haris Kadić, the average price in central municipalities ranges between 3,700 and 5,200 BAM per square meter, although no definitive average can be established.
In Banja Luka, prices also differ significantly depending on the area. Real estate expert Dragan Milanović explains that new construction ranges from around 3,000 BAM per square meter on the outskirts to as much as 7,000 BAM in the city center. On average, prices in the central zone range between 5,000 and 6,000 BAM, while slightly wider central areas average between 4,000 and 4,500 BAM.
Although the market shows no signs of major fluctuations, questions remain about the sustainability of current prices. In Banja Luka, data suggests that as many as one in three purchased apartments remain unoccupied.
A significant portion of buyers are members of the diaspora, who view real estate as a secure way to save or invest money. According to Dragan Jošić from the Consumer Protection Association “Reakcija”, one proposed solution to stabilize prices is for the Government of Republika Srpska to introduce so-called “people’s bonds” aimed at the diaspora, which could redirect investments and potentially make apartments more affordable.
The sharp increase in prices began in 2022, driven by rising costs of iron and other construction materials on the global market. Since then, prices per square meter have continued to climb steadily. Experts predict that this trend will persist, with an estimated additional increase of around 10 percent in Bosnia and Herzegovina during 2026.
