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    One half of a WORKING LIFE for an apartment in Serbia

    One half of a WORKING LIFE for an apartment in Serbia

    With the increasing number of square metres built in the last four to five years, there is also a significant increase in real estate prices, and according to certain criteria real estate in Belgrade is among the most expensive in the world, considering the average price of a square metre and the average salary.

    According to a real estate market analysis by Alexander Radivojevic, an associate of „Kvartalni monitor“, an economic publication of the Economic Science Development Fund, apartments in Belgrade are almost two times more expensive than in the capitals of countries of the former Yugoslavia, when compared to the standard of living. Namely, according to index of the ratio between the price of real estate and wages, taking into account acquisition of a newly built apartment of 60 square metres at an average price and average salary. According to this criterion, it takes 17.8 years in Serbia for someone with an average income to buy an apartment of 60 square metres. It is even more difficult to buy an apartment in Belgrade because, although it has the highest average salary, prices of apartments are even higher than the rest of Serbia, so it takes 20.4 years to leave the entire salary aside to buy a new build apartment of 60 square metres. It takes 8.9 years in Sarajevo, 9.5 years in Zagreb, 9.9 years in Podgorica and just over nine years in Skopje. Another indicator of the real estate market in Serbia is the stake of housing loans in GDP. At only 7.6 percent in 2018, Serbia is below the average when compared to countries of the Central and Eastern Europe. This is certainly due to the fact that almost 70 percent of real estate, apartments in Serbia is sold for cash. According to RGA, the average price of an apartment in Serbia is EUR 900 per square metre in retro and EUR 1,180 per square metre in new builds. In Belgrade, in 2018, a square metre of a retro building cost an average of EUR 1,150 and new build cost EUR 1,500.

    Izvor: Danas

    Foto: Pixabay

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