High Demand as a Reason of Change in Property Prices in BiH

September 5, 2017 5:30 PM

The price of apartments in Bosnia and Herzegovina (BiH) increased during the summer due to the large number of buyers from the diaspora, while renting is also more expensive due to the ever-growing interest of Araps and tourists, according to agencies that sell properties.

Elvedin Catic, the director of an agency that sells properties, confirms that property prices in Mostar have jumped between 10 and 15 percent and that there almost no older apartments for sale.

Selling during the summer and winter

“There’s a higher demand for apartments in the summer due to the diaspora, but they’re also being sold during the winter. Most apartments that are sold are between 80 and 90 thousand BAM. The working class purchases apartments if they can get a credit. They get a credit for 10 to 15 years, which means that the mortgage payment is between 400 and 500 BAM, at most 600. We sell that during the entire year, mostly to newlywed couples,” explained Catic and noted that the most sought after location is the center of the city.

He reminds that apartments for rent are also getting more expensive when students start university. However, the increase number of tourists also increases the prices.

“Now, many apartments are being rented out for a day or two. Their prices increase during the summer. For 250 to 300 BAM, you can rent a worse apartment. Around 350 BAM is the minimum up to around 600 BAM, which is unrealistic for one family. There are many students from Croatia so several of them rent one apartment and that’s one of the reasons for the increased prices,” according to Catic.

Some agencies In Sarajevo are confirming that the prices of apartments haven’t changed in the last several months. In the capital, the most sought after apartments are those of about 50 square meters. Most people want apartments in Center and between Grbavica and Bascarsija.

Neven Begovic, an employee of one agency, says that newly-constructed apartments around Skenderija and Nova Otoka are in the highest demand, while the price is determined by the condition of the property.

Average prices
Mostar: from 1,700 to 1,800 BAM per square meter for used apartments and up to 2,300 BAM in newly-constructed buildings
Sarajevo: from 1,500 to 2,500 BAM per square meter for used apartments between Bascarsija and Grbavica

(Source: Akta.ba)

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