Experts expect a sharp decline in real estate prices

The number of real estate sales contracts in Serbia fell for another quarter in a row, i.e. there was a 15.9 percent decline compared to last year.

This indicates that fewer people are willing to buy real estate while the experts predict that real estate prices will definitely drop in 2024 and that the first signs of this will be visible in 3 to 6 months.

While in the first half of 2023, the State Geodetic Authority (RGZ) recorded 13 percent fewer real estate sales contracts in Serbia, in the third quarter that decline was 15.9 percent. If experts are to be believed, this is a signal that we are approaching a drop in real estate prices by up to 20 percent.

Vladimir Đukanović, economist and consultant, says that it is quite certain that after the RGZ report, real estate prices will have to fall in the coming period.

“Lower prices are expected in the coming period because the number of real estate transactions has fallen, and as soon as that happens it indicates a fall in demand which then usually results in lower prices. I expect this to happen in three to six months. At the moment the supply has never been higher but the demand has almost topped. It remains to be seen how much real estate prices will drop but I expect the decline to be between 5 and 20 percent,” says Đukanović.

He explains that during the coronavirus pandemic, a large amount of money was printed which then led to people massively investing in real estate, which contributed to inflated prices. However, in the coming period, we will see a reversal of this trend and prices will start to fall.

(B92, 15.11.2023)

This post is also available in: Italiano

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