Serbian real estate on the rise

Real estate in Serbia — new horizons for investment

The real estate market in Serbia is experiencing an active growth, opening up unique opportunities for both locals and foreign investors. The combination of affordable prices, growing demand, improved legislation and a stable economic situation makes Serbia one of the most attractive destinations for real estate investment. According to the Republican Geodetic Institute of Serbia, the volume of transactions in the real estate market in the second quarter of 2024 reached € 1.8 billion, showing an increase of 8.2% compared to the same period last year. At the same time, the number of transactions increased slightly — by only 0.6%, amounting to 30,837 transactions. This indicates an increase in the average cost of each purchase by about 10%.

Particularly high activity is observed in large cities such as Belgrade and Novi Sad:

• Belgrade is the center of attraction for investments. The capital of Serbia is the undisputed leader in the country's real estate market. The city attracts buyers with its developed infrastructure, rich cultural heritage and wide opportunities for business and education. According to the Numbeo portal, the average price of an apartment in the center of Belgrade is about €2,500 per square meter, which is about 2-3 times lower than prices in cities such as Vienna, Munich or Milan. High demand for real estate in Belgrade leads to a constant increase in prices. According to experts, in the coming years, the cost of a square meter in the Serbian capital will increase by an average of 5-7% annually. This makes the purchase of housing or commercial properties a profitable investment for both preserving and increasing capital. Novi Sad is a new star on the investment horizon.
• The second largest city in Serbia, Novi Sad, has also demonstrated impressive dynamics in the real estate market in recent years. Thanks to its status as a university center, the development of the IT industry and the high quality of life, the city attracts both Serbian youth and foreigners, especially from the former Soviet Union. Real estate prices in Novi Sad remain 15-20% lower than in Belgrade, which opens up opportunities for investors with a smaller budget. At the same time, the potential for growth in the cost of housing and commercial properties in the city is estimated as high — according to analysts, prices will increase by an average of 7-9% per year in the next 5 years.

Key factors in the growth of the Serbian real estate market

The positive dynamics of the market are due to a number of factors that make Serbia an attractive country for real estate investment:

1. Economic and political stability — in recent years, Serbia has demonstrated sustainable economic growth, a decrease in unemployment and an increase in its credit rating. This strengthens the confidence of both local residents and foreign investors, stimulating demand for real estate. For Serbs, buying a home remains a reliable way to save money in the context of global economic instability. In addition, Serbia is actively seeking to join the European Union, which increases its investment attractiveness. Membership in the EU opens up new opportunities for the country's economic development and growth in real estate prices.
2. Favorable legislation for foreign buyers — Serbia grants foreigners the right to purchase real estate in the country, subject to certain legal requirements. The main restriction concerns the purchase of properties located in areas where special ownership rules apply to foreign citizens. In other cases, foreigners are free to invest in residential and commercial real estate in Serbia. An important advantage for foreign buyers is the possibility of obtaining a residence permit in Serbia based on real estate ownership. This makes the country an attractive place for relocation, especially in light of its prospects for joining the European Union.
3. The development of mortgage lending is another factor in the growth of the Serbian real estate market. Serbian banks offer borrowers lower interest rates and extended loan terms, which makes home purchases more accessible to a wide range of people. In addition, some banks are developing special mortgage programs for foreign buyers, simplifying the process of obtaining a loan and reducing document requirements. This opens up new opportunities for foreign investors wishing to purchase real estate in Serbia.

Prospects for the development of the real estate market in Serbia

Most experts agree that the real estate market in Serbia will maintain positive dynamics in the coming years. According to forecasts, prices for housing and commercial properties will grow by an average of 5-7% annually until 2028. Investment in real estate for the purpose of renting out is a particularly promising direction. Belgrade and other large cities in Serbia are attracting more and more foreigners, including students, freelancers and employees of international companies. This creates a stable demand for rental housing and provides owners with a stable passive income. In addition, further growth in interest in investing in commercial real estate is expected, especially in the segment of office space and shopping centers. The development of small and medium-sized businesses in Serbia increases the demand for high-quality space in the business districts of Belgrade, Novi Sad and other large cities.

In conclusion, we note that the real estate market in Serbia is experiencing a period of active growth, providing investors with unique opportunities for profitable investments. The combination of affordable prices, a stable economic situation, favorable legislation and high development potential makes Serbia one of the most attractive destinations for purchasing housing and commercial properties. By investing in Serbian real estate today, you can count on not only preserving but also increasing your capital in the long term. In addition, owning real estate opens up opportunities for obtaining a residence permit in the country, which is especially relevant in light of its aspirations to join the European Union. The Serbian real estate market has significant growth potential and can become a reliable source of passive income and capitalization for investors ready to make a thoughtful and balanced choice of investment objects. Now is the time to take a closer look at this promising direction and take your niche in a dynamically developing market.