The economic crisis in the Balkans is placing the real estate industry at a serious risk, according to a report in the South Europe (SE) Times.

The average cost of property in the region has slumped by 30-50% since 2008 and from Greece to Romania, plans for developing industrial or tourism projects have either been postponed or cancelled.

If the trend continues, future prospects in the industry seem bleak across the region, experts warn.

As recently as five years ago, Montenegro was the regional investment hub in the construction sector, pushing the average price to €1,000sqm in Podgorica and to €2,500sqm on the coast. Today, real estate prices in coastal cities like Bar and Ulcinj have plummeted by 80%, according to the report.

The situation is no better in neighbouring Croatia. According to sales agencies data, about 50,000 flats are currently vacant and local economists don’t expect EU accession to bring drastic changes to the real estate sector.

The Bulgarian property market, once so popular with UK investors, has deteriorated rapidly and according to Polina Stoykova, chief operations manager of the Sofia-based real estate agency Bulgarian Properties Ltd, the price decrease since the beginning of the crisis is now 43% on average for the country, and 46% for Sofia.