Apartment prices continue to soar. 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 increased by nearly 450 BAM.
According to the Statistics Agency of Bosnia and Herzegovina, the average price of new apartments at the beginning of this year was BAM 2,248 per square meter. This is 23% more than the average price of apartments in 2021. If we only compare the first quarter of 2021 and 2022, then the difference is almost 25%, where we arrive at these 450 BAM.
For 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, costs 635 BAM more. Practically, this amount is higher than the lowest net salary of the Federation of BH, which currently stands at 543 BAM. And the square this year is more than two average salaries in Bosnia and Herzegovina.
Citizens of BH paid more, but also bought more – thus, 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 most specific, ranging from 2,500 to 6,000.
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 led to a slight drop in sales, of 0.3%.
Experts mainly see the reasons for the increase in the price of building elements. According to data from the Statistical Agency of Bosnia and Herzegovina, in one year the price of building land fell from 185 marks to 226 on average. Construction cost and contractor’s profit increased to 426 thousand, while other costs increased to 596 BAM.
Apartment prices have also increased due to real estate investments. This has increased demand, which is not currently accompanied by supply. But it’s not just our country that’s struggling with this real estate market. An increase in apartment prices was also recorded in the countries of the region – around 30% compared to the previous period. However, the purchasing power of the citizens of Bosnia and Herzegovina must also be taken into account. That’s why most, however, decide to rent apartments, writes Federalna.