REAL ESTATE PRICES IN BOSNIA INCREASED 100 PER CENT IN 2007

SARAJEVO, Bosnia (April 26,2008) – According to the market experts and owners of real estate agencies, the prices of real estate in Bosnia have increased by 100 per cent in 2007.

As a result, the price of a square meter in newly built homes in central Sarajevo can reach up to 5,000 Bosnian Marks. A shortage of residential developments is seen as the main reason for this trend which is not expected to be over soon. Banja Luka is the second most expensive city in Bosnia in terms of real estate prices.

Considering that the average salary in Bosnia is 677 Bosnian Marks a month, and that banks are not trying to make buying a home easier (with home loan interest rate at one bank being as high as 6.75 per cent), a new home has become a luxury item in Bosnia.
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