The real estate market in Serbia is expected to reach a projected value by the end of 2024, with the residential segment dominating the market.
In 2023, Serbia’s real estate market experienced a surge in both sales volume and prices. The latter half of the year witnessed a slowdown and stagnation across most cities. Predictions had suggested that a decline in sales volume would trigger price reductions, yet this anticipated shift has not materialized. As 2024 started, potential buyers are keenly interested in the potential movement of real estate prices.
Analysing the trends in apartment prices in Belgrade, the city continues its tradition of holding the top position in terms of average prices per square meter in Serbia. Novi Beograd maintained its position as one of the most expensive location.
Opinions in the real estate sector are divided. Some believe that prices will stagnate, while others anticipate a decline. In contrast, the majority of investors—90 percent—forecast price stability, with only 10 percent expecting a decline.
Both groups identify economic instability, both domestically and globally, as the primary challenge in their business. Additionally, factors such as credit conditions, inflation, and labour shortages in the construction sector are considered risk elements. Nevertheless, the majority of respondents believe their incomes will either remain steady compared to 2023 or see an increase.
Investors similarly pinpointed unfavourable loan conditions as the most impactful factor on their business , followed by rising construction material prices, geopolitical instability, and reduced demand for ‘first sale’ apartments.
An assessment suggests that the upcoming period marks the bottom of the market cycle, presenting an advantageous time for real estate purchases. During this phase, there is ample room for negotiation with sellers. Although a significant price drop is not anticipated, there might be a reduction in trading volume, translating to fewer transactions. Only in 2025 is an upsurge in demand and transactions expected. However, whether this will result in further price hikes hinges on the supply dynamics.
Beginning of 2024, noted rising of prices per square meter for industrial and warehouse rentals, while the office segment remained at the same level.
