Serbia » Market Report

Due to new residential developments, the total supply of dominance accommodation offerings has increased in Belgrade. Majority of banks started changing mortgages conditions in order to catch the attention of more customers. 

Belgrade has a extensive variety of real estate options available for residents from reasonable homes to luxury estates as well as condominiums and townhouses. Many properties feature wonderful Scenic Mountain, hill, valley, golf course or water views. Single-family detached homes start in the mid $100,000s and range up to over $500,000 for brilliant newer homes and estate properties located on significant acreage.

The real estate market in Belgrade has been very liquid for the past ten years. A number of international developers are very attracted in expanding their business in Serbia, and if further legislation takes place allowing for increased simplicity and availability of land, additional construction is to be expected.

The second half of 2004 was marked by an increased supply due to the continual construction of new apartment buildings. The market has experienced a large increase of good quality two-bedroom furnished apartments in New Belgrade, Vracar and Dedinje. However, the supply of high-quality apartments available on the Belgrade market has become limited.

One of the reasons for this decrease is the perceived unsteadiness of the nation's political situation in 2004 and the slow process of privatization, which has decreased foreign investment and consequently slowed the influx of new expatriates. Colliers forecasts are positive for 2005 as large increases in FDI have already been experienced and are expected to continue.

A number of foreigners are presently interested in investing in Serbian real estate as well. Demand for good quality apartments of approximately 100 m has been high in the third and fourth quarters of 2004, as local investors look to build portfolios of good to high quality apartments to rent out. 

The International Property Brokers forecasts that annual standard real GDP growth will accomplish more than 5% in the financial years 2008 to 2012. Retail price inflation will decrease to less than 4% in the 2012. Serbia will gradually able to gain 13.8% GDP in the year 2012. The International Property Brokers also forecasts that the interest rates will fall which will open up the property market for the domestic buyers as well as for foreign investors.