According to an analysis by Deluxe Holiday Homes, Serbia experienced the highest increase in apartment prices per square meter between 2023 and 2024, with a dramatic 82.66% rise to approximately €3,721. Despite this sharp increase, the average monthly income in Serbia stands at €764, which has not kept pace with the surge in housing costs.
In comparison, Switzerland, although recording the highest per square meter price of €18,781, has seen prices rise less sharply than in Serbia. The higher cost of living and income levels in Switzerland remain the highest globally.
Several factors contribute to Serbia’s housing price boom, including relatively low interest rates on housing loans and limited investment alternatives. Additionally, recent geopolitical events, such as the Russia-Ukraine war, have led to an influx of Russians and Ukrainians seeking rental properties in Serbia.
Lithuania ranks second, with a 75.78% increase in apartment prices, reaching €4,460 per square meter. The average monthly income in Lithuania is significantly higher than in Serbia at €1,496, while the cost of living is slightly more at €762. Factors driving this increase include rising wages in specific sectors, higher construction material costs, and a surge in IT companies setting up in major cities.
Romania holds third place with a 74.50% rise in apartment prices, bringing the average to €2,934 per square meter. Although the cost of living in Romania is lower at €625 per month, the average income is also lower, at €1,007. The sharp price increase in Romania is attributed to high demand, a shortage of new apartments, rising construction costs, and labor shortages. Recent infrastructure developments and wage increases have further driven demand in the real estate sector.
