The real estate market in Republika Srpska has experienced a sharp rise in housing prices over the past year, with the most dramatic increase recorded in Trebinje. The average price per square meter in this picturesque city has surged by a staggering 1,243 KM in just one year.
According to the Republika Srpska Institute of Statistics, the price per square meter in Trebinje rose from 2,933 KM in the third quarter of 2023 to 4,176 KM during the same period in 2024.
High Demand from Diaspora and Foreign Buyers
Real estate agents attribute the price surge to high demand from expatriates and foreign buyers seeking a peaceful environment to settle down.
"The price for new apartments is around 3,500 KM per square meter, while older properties range from 2,400 KM upwards. The demand is largely driven by the city’s proximity to the Adriatic Sea and its abundance of sunny days. Most clients come from the United States, Canada, Australia, as well as Germany and the Netherlands," real estate agencies report.
While Trebinje attracts buyers from across the globe, local residents face a daunting challenge in affording homes in a city where real estate is becoming a luxury.
Mayor of Trebinje, Mirko Ćurić, confirmed that some properties in the city are being sold for as much as 5,000 to 6,000 KM per square meter.
"There is significant demand. Many people from abroad are moving here with their families, which is driving up prices," Ćurić told local media outlet Trebinje Danas.
Price Hikes Across Republika Srpska
Trebinje isn’t the only city experiencing a surge in property prices. Other cities in Republika Srpska have also recorded price hikes.
In Banja Luka, the average price per square meter rose from 3,369 KM to 3,618 KM.
Bijeljina saw an increase from 2,183 KM to 2,434 KM.
Prices in Doboj climbed from 2,235 KM to 2,382 KM.
In Istočna Ilidža, the price went up from 1,793 KM to 2,314 KM.
To ease the housing crisis, Trebinje’s municipal administration has introduced incentives for building houses. Those constructing homes up to 200 square meters in areas from the third to sixth zoning zone are eligible for a 50% discount on rent and development fees.
"We have sold plots to individuals planning to build homes and hope this will encourage more people to stay in Trebinje," added Mayor Ćurić.
Increase in Apartment Sales Despite Rising Costs
Despite soaring prices, apartment sales have increased by 3.1%. The average price per square meter for new apartments in Republika Srpska rose by 8.9%.
"New buildings are being constructed continuously, as the market has a limited supply of available apartments," real estate agents said, pointing to a sustained construction boom in the region.