Foreign buyers drive demand for affordable rural homes in Serbia and Bosnia

In Serbia’s Pomoravlje region, the housing market is attracting a growing number of foreign investors, particularly Russians and Chinese, alongside Serbian city dwellers seeking cheaper, livable villages. Buyers are purchasing houses priced from €25,000 to €50,000, with new construction costing €1,400‑€1,500 per square metre. The appeal lies in lower living costs, fully developed infrastructure and the possibility of multi‑generational living.

In Bosnia and Herzegovina, average wages remain far below the cost of new apartments. A 60‑square‑metre flat requires between 400 and 700 average monthly salaries, depending on location. Despite the price gap, transaction volumes stay steady because families prioritize adequate housing and a segment of the diaspora accounts for about 30% of purchases. Local buyers make up roughly 70% of the market, often using mortgages to finance their homes. Both countries see a persistent demand for housing regardless of price trends, highlighting affordability challenges across the Balkans.