Expat Serbia

Residential market

Serbian residential market activity continued on a downward trend in the beginning of 2011.

The real estate sector was subject to a significant decrease in demand in all segments. Residential market, the most dynamic and most popular of all property segments is now slowly getting on his feet.

Experts note that the growth has been driven by two factors: the reintroduction of subsidized government housing loans and more realistic apartment prices following the economic crises. In order to support the construction sector, Serbian Government adopted a regulation on housing loan subsidies, which reduces the citizens’ participation from 10% to 5%, enabling them to get housing loans more easily and under much better terms now

The signs of recovery and certain positive movements in Belgrade residential market, in terms of supply, are becoming more evident. A significant number of residential projects, both high-quality and mid-end projects, are currently under construction, which will further enrich the residential property market in the next several years. 

For many experts, this is the best time to become the property owner!

According to Danos, the Serbian legal framework recognizes two types of apartments, high-end and mid-end. With reference to the situation on the market and smaller trend of demand closing 2011 resulted in slight decrease of the asking prices for mid-end apartments from EUR 1,400 to EUR 2,000 per sq m while the asking prices for high-end apartments remain relativity steady.

Gross Sales prices of new apartments in Belgrade for 2011 (Source: Colliers International)

Vojvodina real estate market is expanding constantly and after Belgrade the number of residential units in Novi Sad records highest level in Serbia. Highest activity is at Ademicevo Naselje, Liman, Nova Detelinara and Sajmiste, Somborski Blvd. and Blvd. of Europe. Residential market in Novi Sad is considered stable and it records high level of population increase, respectful employment rate, as well as one of the highest household incomes in Serbia after Belgrade.

The highest price in Novi Sad residential market was recorded in 2007/2008 but due to the global crisis, now prices declined by 15 - 25% for the old buildings and houses, while new apartments are getting sold with average downfall of 10%.

The second largest city in Vojvodina, Subotica records relatively high level of residential delivery. A price level for apartments in the Subotica depends on the location, structure and year of construction. In the center prices range from EUR 400 – 800 par square meters, while in suburbs you can find newly constructed apartment for the price of EUR 320 – 600 par sq m.

Price level for apartments in other towns in Serbia you can see in the next table:

* The most expensive apartments in Nis can be found in downtown areas of Marger, Cair and Crveni Pevac, as well as in Nemanjica Boulevard. The cheapest   apartment prices are in outskirts of Niš, namely in residential areas of Delijski Vis, Donja Vrežina, Ratko Jovic etc.

Apartments come in a variety of sizes; however, it is more difficult to rent small size high quality apartments. When searching for apartment to buy alongside the location and quality of finishing works, on of the key factors in apartment purchase is the developer’s reputation. Also experts advise that buyers should ensure that proper due diligence is completed when purchasing apartments and seek professional advice from rental agents, civil engineers and lawyers before making a purchase. Real estate agencies exist in large numbers. Search for "nekretnine" or "nekretnine Beograd" to find some of them with an online presence and check whether they support foreign investors. For more information about purchasing procedure for foreigners see this article.

Big thanks to CB Richard Ellis and  National Statistic Office