The real estate market in Bosnia is expected to cool down only next year

The fact that real estate prices in the countries of the European Union have started to fall, but also in neighboring countries, such as Serbia, is not reflected in Bosnia and Herzegovina. Moreover, real estate prices, especially when it comes to apartments, are still at a dizzyingly high level.

The average price of new apartments sold in BiH in the third quarter of this year was 2,690 KM per square meter, as shown by the data of the State Agency for Statistics. Square meters are still very expensive even in new construction, in many larger cities of Bosnia and Herzegovina they start at 3,500 KM and up.

On the other hand, the real estate market is currently dominated by an unrealistic offer in old buildings, which shows a significant disparity between the asking price and actual market values. Certain real estate agencies also agree with this.

"Demand is quite strong. Everything that is of good quality is sold. However, the asking prices have gone to unrealistic levels for old buildings, for properties that are not so attractive. There are a lot of high advertised prices on the market and we don't really see that all these properties can to go for such prices. What is attractive can, but not everything in general" - Maho Taso from the Sarajevo agency "Prostor" tells us.

How much the appetites of individuals have grown is shown by the information that in the central part of Sarajevo, as confirmed by Taso, 4,000 KM per square meter is being demanded for non-adapted apartments, which, he says, is not realistic.

Although corrections have taken place in EU countries and in parts of the surrounding area, traffic has not decreased in our country. Currently, there are no indicators, according to our interlocutor, that these changes affect our market.

We still have favorable interest rates, we have no alternative for savings, except in real estate, and in fact we still have a bad offer, which will keep prices down. A certain stabilization may occur next year, given that several new construction projects are being announced. We certainly do not expect a collapse, because the demand is strong, and certain corrections will probably come in the old construction sector - emphasizes Tasso, reports Avaz.ba.

Tržište nekretnine, 01. Dec. 2023.