Although the prices of construction materials are currently stable, the rise in almost all other costs in the construction sector in the Republika Srpska (RS) has led to new pressures on the real estate market, which is why experts are announcing a further increase in apartment prices per square meter in 2026 as well.
Mile Petrovic, Secretary of the Association of Construction and Building Materials Industry within the Chamber of Commerce of the RS, points out in an interview that, although construction material prices are not currently increasing, almost all other parameters that go into the price per square meter of an apartment have gone up, adding that higher prices per square meter can be expected.
“This primarily refers to the preparation of design and technical documentation, professional supervision, location prices, fees for the development of urban construction land and rent, building permits, as well as all other costs in that chain,” said Petrovic.
He explains that labor is becoming increasingly expensive and that it is ever more difficult to find qualified workers, so that practically all other parameters, except the materials themselves, have increased in price. This has a significant impact on price growth.
“Given that the prices of almost everything are rising, it can be expected that there will be an increase in apartment prices per square meter in the new year as well. We hope that this increase will not be large, but it should be noted that a large number of luxury buildings are currently being constructed, tailored to buyers’ preferences,” Petrovic explained.
He added that this inevitably leads to a certain increase in prices, because buyers’ demands in terms of material quality are being met, which is especially reflected in the final phase of construction.
As Petrovic said, apartment prices per square meter in Banja Luka currently range from around 3.500 BAM in the peripheral parts of the city to 7.000 BAM in the very center.
Dragan Milanovic, Director of the real estate agency “Remax“from Banja Luka, agrees with the forecasts of rising prices.
“As long as there is strong demand, prices will rise. That is basic economic logic: when something is in short supply, its price goes up,” Milanovic said.
He also pointed out a noticeable and chronic shortage of labor in the construction sector.
“A lot is being built, and fewer and fewer young people are deciding to engage in this line of work. Because of this, investors are forced to pay workers more, and that then affects the price per square meter,” Milanovic explained.
He added that demand for apartments has been stable in recent years, while a decline has been recorded in the segment of business premises.
“Interest in smaller apartments is growing; this is a trend that has been particularly pronounced in recent months,” Milanovic said.
According to official data from the Institute of Statistics of the RS,in the first three quarters of last year, that is, from the beginning of the year to the end of September, 654 new completed apartments were sold.
The average price per square meter amounts to 3.763 BAM, while the average price of sold new apartments in the third quarter alone was 3.911 BAM.
Otherwise, real estate prices in Banja Luka rose sharply after the outbreak of the war in Ukraine and as a result of global inflation.
Until then, the price per square meter of a newly built apartment ranged from 2.500 to 2.800 BAM.
Since September 2021, prices have increased by at least 1.000 BAM per square meter.
