housing loans

Banks raise interest rates on housing loans: Young buyers step back as affordability declines

Serbia’s real estate market faces new headwinds as banks raise interest rates on housing loans, pushing many young couples and first-time buyers out of the market. After years of historically low borrowing costs that fueled a construction boom and drove apartment prices to record highs, tighter monetary conditions are reshaping demand and altering market dynamics across the country. Throughout 2023 and 2024, Serbia benefited from a global era of cheap credit. Mortgage rates were low, banks aggressively promoted home loans…