Real estate prices in Serbia: when will they fall due to the new global trend?

Specialists in Serbia told whether real estate prices will fall in our country.

The last two weeks have seen a significant drop in the price of iron ore on the world market, which, according to data from the Tradingeconomics website, costs $117 per ton, while on June 8 it cost $142.4 for the same amount. Due to the pandemic and the Ukrainian crisis, the prices for iron ore, as well as for steel, have fluctuated a lot, which has also affected Serbia, which has caused, among other things, an increase in the prices of new buildings.

Licensed real estate agent Davorka Tasic says that at the moment, prices on this market cannot be expected to decrease. "Those who are building now have already procured materials at high prices, so you can't expect lower prices for the new constructions that are underway. In the future, those who are buying materials now and counting on the cost may lower their prices. We are currently seeing price stagnation and the future is impossible to predict, as well as the price movements of these raw materials. Of course, prices won't come down anytime soon, at least not for six months, especially since the euroborrow is rising for the first time in eight years, which will push up interest rates on loans. This will discourage many from taking out a mortgage loan if they were planning to do so," Tasic says for Kurir and adds that demand for real estate will certainly decrease, which could affect real estate prices.

Economist Aleksandar Stevanovic says that there are chances for prices to go down, but there is one pitfall. "Prices have one thing going for them - they rise much more easily than they fall. However, it is not only material prices that have pushed up real estate prices, so if there is a more prolonged decline in raw material prices, we will definitely face an end to the rise in real real real estate prices, but whether there will be a decline in real prices is a more difficult question," he says.

MilicвЂokovic, an appraiser and real estate expert, says that lower raw material prices may lead to a slight decrease in real estate prices, but it cannot be more than five percent, and it will only be if a few investors cut prices and the rest start following them. Our interlocutor believes that iron price is not a determining factor for real estate prices. "The price of materials has been used to raise prices but will not be used to lower prices. Current trends are not encouraging.

According to the Tradingeconomics website, steel showed a 6.22 percent drop in price yesterday and became cheaper by 8.26 percent for the month, iron ore fell in price by 3.67 percent and the monthly drop was even 17.48 percent. Copper became cheaper by 1.09 percent, and on a month-to-month basis, the percentage was 19.37. Bitumen and nickel also experienced similar price declines, with bitumen falling 3.19 percent and nickel 3.87 percent. Bitumen on a month-to-month basis, in fact, became cheaper by 2.60 percent and nickel even by 22.43 percent.

(MONDO)