The real estate market is “indestructible”: Prices to continue rising throughout autumn

Come autumn and winter, regardless of what kind of epidemic befalls us then, it seems that nothing can disturb the domestic real estate market.

“It is expected that the sale of apartments will increase due to available credit facilities, which means that prices will probably rise as well. I hope, however, that this ‘madness’ with the prices of real estate in Novi Beograd and Zemun will stop,” owner of the Old Royal Sistem real estate agency, Milić Đoković, says.

During the spring and summer, houses were high in demand, being those for living or cabins in the country. During the state of emergency, people came to the realization that it was good to have a property with a yard.

“It seems to me that every house and cottage that was fit for a living has been sold and that the season of apartments is coming,” says Đoković.

Mortgage breaks “push” the housing market

“I expect that the sale of real estate will grow in the fall, especially when you take into account that mortgages are very favourable today,“ Đoković adds.

Interest rates are around three per cent and are even lower for loans indexed in euros. You can get a mortgage with a 10 per cent down payment and soon even for apartments that are not finished (of finished up to 60 per cent of their surface). There is also a VAT refund if you are a first-time buyer while senior citizens are entitled to an exemption from paying tax on the transfer of absolute rights for a segment of their apartments.

“Prices can fall only when a multitude of buildings (spanning millions of square metres in total) are built in Belgrade and Serbia, and that will not happen in the next 10 years. Every year, 30,000 people move to Belgrade, plus there are 50,000 people who come to Belgrade and rent a property. Up to 20,000 new apartments are built annually – therefore, the demand is twice as high as the supply “, Đoković adds.

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When it comes to newly built apartments in the Belgrade municipalities of Novi Beograd and Zemun, Đoković has only one word to describe the price trend – “crazy”.

“The price of a square metre of a newly built apartment in Novi Beograd ranges from 2,000 to 4,000 euro, and in Zemun from 1,500 to 3,000 euro,“ he adds.

Đoković hopes that the prices would eventually balance out in comparison to other parts of the city.

„For example, it would be logical for a square metre of property in the municipality of Zvezdara or Voždovac, which currently goes for 1,500 to 1,600 euro, to go up to 2,000 euro, and for the prices of real estate in Zemun to go down from 3,000 to 2,500 euro per square metre, to achieve some kind of balance,” says Đoković.

When asked for reasons why buyers pay so much more for an apartment of the same quality in relatively close Belgrade municipalities, he says its the furnishing and amenities.

“Buyers have become spoiled, they want to have everything within a 100-metre-radius – a kindergarten, a school, a hairdresser, a beautician, a supermarket or a shopping centre. And that costs “, explains Đoković.

(Nova, 01.09.2020)

This post is also available in: Italiano

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