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Belgrade Housing Costs: Minimum 1,300 Euro Salary Needed for 50 sqm Apartment
๐Ÿ‡ท๐Ÿ‡ธ Serbia /Economy & Trade

Belgrade Housing Costs: Minimum 1,300 Euro Salary Needed for 50 sqm Apartment

From N1 Serbia · () Serbian

Translated from Serbian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Buying an apartment in Belgrade requires a minimum monthly salary of 1,300 euros to afford a 50-square-meter unit with a 20% down payment.
  • Factors influencing loan approval include job contract type and the ability to keep up with rising property prices.
  • The high cost of housing, with average prices often exceeding average incomes, is a common issue in major cities globally, not just in Serbia.

Securing housing in Belgrade remains a distant dream for many under-renters due to soaring property prices, high interest rates, and stagnant wages. To purchase a 50-square-meter apartment, individuals need a monthly salary of at least 1,300 euros, according to real estate agent Uroลก Jovanoviฤ‡.

To buy a 50-square-meter apartment, you need to earn at least 1,350 euros.

โ€” Uroลก Jovanoviฤ‡Real estate agent Uroลก Jovanoviฤ‡'s estimate for the required salary to purchase a 50-square-meter apartment.

Jovanoviฤ‡ explained that a 50-square-meter apartment on the outskirts costs around 3,000 euros per square meter, while central locations like Vraฤar or New Belgrade can reach 4,000 to 5,000 euros. For a 150,000 euro loan with a 20% down payment (30,000 euros), the remaining 120,000 euro loan would result in a monthly installment of approximately 600 to 650 euros. This payment capacity requires a salary of at least 1,300 euros.

So, to take out a loan of 650 euros, you must have a salary of at least 1,300 euros. That's the salary range.

โ€” Uroลก Jovanoviฤ‡Uroลก Jovanoviฤ‡ explaining the salary needed to cover a 650 euro monthly mortgage payment.

Beyond the loan installment, buyers must also account for the 20% down payment, furnishing costs, notary fees, and agency commissions. Financial consultant Vladimir Vasoviฤ‡ offered a more stringent calculation, suggesting a net salary of 1,980 euros is necessary for a 150,000 euro loan over 20 years, resulting in a monthly payment of 990 euros. Extending the loan term to 30 years would lower the monthly payment.

To buy an apartment of 150,000, you need 30,000 for the down payment, you need a 650 euro installment, and you need to furnish the apartment, pay costs, notary, agency, and so on.

โ€” Uroลก Jovanoviฤ‡Uroลก Jovanoviฤ‡ detailing the total financial requirements for buying an apartment.

Jovanoviฤ‡ noted that unaffordable housing is a global phenomenon, with average property prices often exceeding average incomes in major cities worldwide. This situation is more pronounced in some regions than others but is a general reality.

Unfortunately, that's a reality that is not only here. It's more pronounced in some places, less in others, but generally, the average square meter is unaffordable with an average income everywhere.

โ€” Uroลก Jovanoviฤ‡Uroลก Jovanoviฤ‡ commenting on the global issue of housing affordability.
DistantNews Editorial

Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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