Real estate prices surge in Banja Luka and select Serbian cities

Real estate markets in the Balkans are experiencing significant shifts, characterized by rising prices in new constructions and changing demand patterns in Bosnia and Herzegovina and Serbia.

In Banja Luka, prices for new apartments have doubled since 2022. This surge in purchase prices has subsequently driven up rental costs. Dragan Milanović, president of the Association of Real Estate Brokers of Republika Srpska, noted that affordable apartments in the 250 to 300 KM range have largely disappeared. Rental prices for students now typically range between 500 and 800 KM, though finding central locations at these rates is increasingly difficult. Landlords often view students as less desirable tenants due to concerns regarding property maintenance and the short-term nature of their stays.

In Serbia, a boom in new construction is occurring in several cities outside the major hubs of Belgrade, Novi Sad, and Niš. Data from the Republic Geodetic Authority indicates that in Novi Pazar, Prokuplje, Loznica, Užice, and Pančevo, more new apartments were sold than old ones during the first half of the year. In Novi Pazar, 72 percent of sold apartments were purchased directly from developers, often during the early stages of construction. This demand is partly driven by capital from the diaspora and the city's status as a university center.