The real estate market in Serbia seems to be recovering

The Serbian real estate market seems to have recovered after suffering a decline of almost 70% during the state of emergency, while real estate prices have remained virtually unchanged.

However, the demand, as well as the prices of houses in suburban municipalities around Belgrade and other larger cities have increased, real estate agents say.

The Association of Serbian Banks told Tanjug that there is no decline in the activities regarding mortgage loans, and that a total of 120,000 mortgages of an average value of about 30,000 euro are currently registered with the Association.

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The Chairman of the Board of Directors of the Real Estate Cluster, Nenad Djordjevic, reported that the real estate turnover has returned to the February level or the first week of March.

“Unlike countries where measures to combat the coronavirus have led to a greater decline in real estate transactions, which will leave permanent consequences, this is not the case in Serbia. Because our market does not depend on people who purchase real estate via mortgages but on developers, since 70% of buyers in our country buy in cash,” says Djordjevic, who is also vice president of the real estate agents group of the Serbian Chamber of Commerce.

“During this crisis, there was a redistribution of prices in the market, so house prices in suburban neighbourhoods and peripheral municipalities of Belgrade, such as Grocka, Barajevo, Lazarevac, Sopot, went up. The same goes for the houses close to Novi Sad. People realized that with the money that they would normally spend on a two-bedroom apartment in Mirijevo, they could buy a house with land and a garden in one of the neighbouring municipalities,” said Djordjevic.

When it comes to apartments, their price is stagnant and is at the same level as before the crisis, says Djordjevic, adding that new apartments are sold on a daily basis and that nearly all apartments in new buildings are already sold out.

The most popular locations are Novi Beograd and Vracar, in the city centre, as are also peripheral neighbourhoods like Mirijevo and Zarkovo, where the real estate prices are lower. New apartments can be bought at the price of between 1,200 and 1,400 euro per square metre, while the price of old apartments is slightly lower.

Even the Secretary-General of the Association of Serbian Banks, Vladimir Vasic, says that about 30 or 35% of real estate is purchased with the help of mortgages and the rest in cash, most often by people who have generated cash from selling their previous apartments.

According to Vasic, there are currently about 120,000 approved mortgages, whereas six or seven years ago, there were only 75,000. He adds that the pandemic has not significantly affected mortgages in Serbia.

(B92, 03.08.2020)

This post is also available in: Italiano

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