Real estate market optimistic

In the first quarter of 2024, the demand for retail loans, including housing loans, was again up, while the data collated by the National Bank of Serbia say that since the beginning of the year, the value of approved housing loans has increased by four billion dinars.

Although this is a symbolic increase, the long-standing stagnation trend has been reversed in terms of the willingness of individuals to take out loans for the purchase of real estate, says real estate appraiser Milić Đoković, adding that a renewed interest in housing loans is good news for the domestic real estate market.

“I believe that a certain number of buyers finally realized what we have been constantly pointing out, i.e. that real estate prices are continuing to rise and for the money they can buy a 60 square-metre apartment today, next year they will be able to buy only a 50-square-metre one”, Đoković adds.

He goes on to say that the number of newly approved housing loans is still not “significant”, but that their presence on the market is noticeable, especially since March and April are the months when the real estate purchases go up, after the winter break.

In terms of interest rates on newly approved housing loans, the central bank says that the average annual interest rate in March was 5.1 percent, while the highest one of 6.73 percent was recorded in August last year. In March, the interest rate for housing loans granted in dinars was 16.58 percent.

The central bank’s measure on capping interest rates on housing loans is in force until the end of 2024 and it implies that the nominal interest rate on a housing loan cannot exceed 4.08% annually.

(Biznis.rs, 15.05.2024)

https://biznis.rs/vesti/srbija/optimizam-na-trzistu-nekretnina-raste-traznja-za-stambenim-kreditima/

This post is also available in: Italiano

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