The total amount of money in the real estate market in Serbia in the first half of 2022 amounted to EUR 3.6 billion, which is a 25% increase compared to the same period in the previous year, despite rising inflation and geopolitical circumstances that threaten supply chains, affect prices and material shortages.
“However, it is clear that the huge growth does not represent a real need of the population, but rather the fear of a drop in the value of the currency,” assesses Stojan Čolakov, president of the Construction Chamber of Serbia, in an interview for Biznis.rs .
Although the real estate market has stabilised to some extent, Čolakov believes that there will be no drop in prices, as confirmed by demand itself. “Even now there are problems with supply and scarcity of some building materials, but the fear of inflation is greater, so the need to buy is simply greater, which is expected,” Čolakov adds.
“The issue of price stabilisation depends on many things that participate in its formation. The first and fundamental element is rent, so all other parameters are linked to it. At the moment, I think that the sales prices of apartments have stabilised somewhat compared to the spring this year and the beginning of the Ukrainian crisis, when the prices of basic building materials started to rise uncontrollably. That period was the most difficult and caused the greatest fear among both real estate developers and building contractors,’ he assesses.
Čolakov then explains that the Serbian market is specific and that once prices rise, it is difficult to return to lower prices. In his opinion, the drop could only occur if the crisis in Ukraine calms down, if there is a stronger market supply, and if global currencies stabilise, which is very difficult to imagine in reality.
(Biznis.rs, 15.09.2022)
https://biznis.rs/novac/moze-li-se-ocekivati-da-cene-nekretnina-nakon-stabilizacije-pocnu-da-padaju/