The report of RGA for the first half of 2023 shows that in Serbia, the trend of stabilization continued in the real estate market after two years of extremely dynamic growth. However, in addition to calming activity, the real estate market still maintains a higher level compared to pre-pandemic values.
The total amount of money used to buy real estate amounted to 3.3 billion euros, which is 81 percent more compared to the first half of 2019 and 7 percent less compared to the same period last year.
The total number of sales on real estate market in the first half of 2023 was 60,014, which is 26 percent more than in the second quarter of 2019 and 12 percent less than in the second quarter of 2022.
– The residential real estate market in Serbia is experiencing continuous growth. The largest share in the total value of the real estate market is occupied by the sale of apartments (1.8 billion euros), with a share of 54 percent of the total traded value.The amount of EUR 257.6 million (8 percent of the total value) was allocated for houses, EUR 220 million (7 percent of the total value) for construction land, EUR 178 million (5 percent of the total value) for business premises, EUR 105.3 million for agricultural land (3 percent of the total value).
– Condominiums with quality property management remain the most attractive residential projects, with prices from 3500 eurο/sqm to 4000 euro/sqm. On residential market, there is a noticeable stagnation in the sale of large apartments.
– The retail sector is facing changes in consumer habits and growing e-commerce. The new shopping mall, opened within the BWF – Galerija, with net leasable area of 93,000 sqm, new brands and overall offer, affected the decline in business of other shopping malls in Belgrade.
– Office spaces have undergone a transformation due to the COVID-19 pandemic. Remote work and flexible work models have become more and more common. The demand for smaller, more flexible offices and co-working spaces is increasing, while the demand for larger business spaces is stagnating, and a slight decrease in rental prices is expected.
– The industrial real estate market, especially the logistics and warehouse sector, attracts the attention of investors. In the last 4 years, more than 500,000 sqm of logistics space was developed on the Serbian market, which brought the total stock to more than 1,120,000 sqm. This positive trend will continue in the future.
Due to the increase in interest rates, there is noticeable stagnation, both in business and in the real estate market. In the next year, a drop in demand in all segments is expected.
Ivan Simic, Serbia Director
Danos Group, International Property Consultants & Valuers