Although a significantly larger part of real estate in Serbia is paid in cash, housing loans are constantly growing. In the first half of last year, under the influence of the corona virus pandemic, the decline in the real estate market was short-lived, according to the Association of Serbian Banks, adding that the market recovered much faster than anyone expected from June to December 2020.
– In March this year, the total debt on housing loans amounted to 4.1 billion euros. That is almost 15 percent more than in the same period last year, and 1.5 percent more than a month earlier, according to the Association of Serbian Banks (UBS).
As they state, this trend is not new because the housing loan market, as well as the real estate market itself, has been growing for 15 years.
– Thus, in 2006, we had only 25,000 housing loans, and in 2015 that number exceeded 100,000 for the first time, and today it is even higher than 135,000, UBS points out.
Interest has never been more favorable
Interest rates on housing loans in Serbia are more favorable than ever, and from that point of view, the moment for buying real estate is never better, they explain in UBS and point out that the average interest rate is around 2.8 percent.
– It is important for the client to get an effective interest rate in the bank, which means that all the costs he has are included in it. The effective interest rate can also be seen on the website of the National Bank of Serbia, and the buyer of real estate has the opportunity to check the offers of all banks and choose the best one for themselves, according to UBS.
Although bank customers are aware of the fact that housing loans with a shorter repayment period are usually more expensive, the conditions vary from bank to bank.
– The estimate of the duration of the loan depends on the interest of the buyer, for some it suits a longer repayment period in order to have a lower monthly installment, while someone wants a faster repayment in order to pay a lower total interest, UBS concludes, Novosti reports.