Is real estate the most reliable asset in Serbia during the current crisis?

Reading time: about 4 minutes. The rise in prices is no secret, and the urgency to purchase real estate is becoming increasingly relevant. To get a closer understanding of the current situation in the world, a good example is the state of the European market.

With rising inflation, you've probably noticed how your daily life is changing - from increasing fuel prices to rising costs of groceries and other essential items. The constantly rising expenses have forced many of you to reconsider all the major purchases you had planned to ensure they are worth it.

In recent years, the topic of rising prices for apartments and other real estate has become increasingly common in conversations. The rise in prices is no secret, and the urgency to purchase property is becoming more relevant. To get a closer understanding of the current situation in the world, a good example is the state of the European market.

How many years do people need to work to save up for the purchase of an apartment in the capital of their country, setting aside all net salaries? The table shows the prices for a 50 sq.m apartment in the city center and the average monthly salary.

Considering the information in the table above, statistics show that if you wanted to buy an apartment with an area of 50 square meters in Belgrade, you would have to work and save for 23 years if you allocated your average salary solely for housing! It's no wonder that most citizens prefer credit deals.

Unexpected circumstances that you may not have heard about.

According to data published on the Trading Economics portal, there has been a decline in iron ore prices over the past three weeks. The price is around $120 per ton, while on June 8 it was $147 for the same amount. Experts believe that this will not currently affect the decline in real estate prices, considering that construction companies have already purchased materials at higher prices, but changes can be expected in the future.

Some experts predict a decline, but no more than 5%, and only by the end of 2023.

Is it the right time to take out a mortgage for housing now?

Yes, the European bank is raising interest rates for the first time in over 10 years, which affects loans indexed to the euro. Because of this, people are wondering if the "train" for getting favorable loans has already left. There is no perfect time to buyreal estate - the right time is when you are sure you can pay off the apartment in the next 10, 15, or 20 years.

In addition to the fact that you, as a client, need to meet the basic requirements as a good candidate, there is also the factor of negotiation, so negotiate the terms and reach out to several addresses!

On the other hand, the time of inflation is perfect for your invested money in real estate to grow along with the rising property prices, which is why many recommend taking out a loan before interest rates increase.

If you are also concerned about a recession, data shows that recessions typically last about 15 months.