An increasing number of young people from all parts of Serbia are showing interest in a government support programme for purchasing their first property in their hometown. As a result, the focus of interest in this state aid is no longer centred on Belgrade, but on the rest of the country.
Assistant Minister of Finance Ognjen Popović stated that interest is no longer concentrated solely in Belgrade, with most applications now coming from other regions, alongside a rise in the purchase of houses and property outside major cities.
“At the very beginning, more than 50 per cent of applications came from Belgrade, whereas that share has now dropped to around a quarter, and more than 56 per cent of applications come from the rest of Serbia, which shows that the programme has taken hold across the entire country,” Popović told RTS.
According to him, the main reasons for the high level of interest among young people in housing loans are favourable terms, a minimal deposit, subsidised interest rates, and the possibility for those without permanent employment to resolve their housing needs.
Data show that the measure is most commonly used by young married couples and families, while in terms of age structure it is fairly evenly distributed, with the largest share among those aged between 25 and 30.
“When we talk about the pace of implementation and the level of interest, we are already looking at potential exceeding 10,000 homes, which makes a significant difference and helps address one of the biggest challenges for young people – acquiring their first property,” Popović added.
An additional €300 million
Because demand for favourable housing loans has exceeded expectations, Popović noted that the state is preparing a new support package worth €300 million.
“That amount of €300 million is fully supported both by our analyses and by requests from banks and citizens, indicating that this is what is needed by the end of the year. We have also allowed guarantors to be persons who are not family members, in order to help young people who do not have that kind of support in their immediate environment,” he explained.
Although some banks have already reached their limits, the processing of applications continues, with the aim of adopting legal amendments in time to ensure the programme operates without interruption.
“Applications are still being received and processed, and we expect that within around 30 days – the time required for loan approval – the amendments will be adopted to allow the programme to continue smoothly,” he said.
The main reason for the current increase in young people’s interest in buying apartments in smaller towns, according to Branko Šajkunić, owner of the BG Posrednik Nekretnine real estate agency, is that in larger cities there are no longer apartments available for up to €100,000, while young buyers do not have sufficient funds for the deposit required for more expensive properties.
“Young people have been taking out these loans extensively, even those who had enough for a standard loan deposit, because the terms are excellent. That is why in larger cities such as Belgrade, Novi Sad and Niš there are no longer any apartments on the market below €100,000. As a result, young people who, for example, do not have €30,000 for the deposit on a €130,000 apartment are opting to buy properties in the outskirts of Belgrade and other major cities. In Pančevo, for €100,000 they can buy a quality apartment, and even houses across Serbia,” Šajkunić noted.
Prices rising in smaller towns
He added that increased demand will also drive up prices in smaller towns.
“In cities such as Kragujevac and Kraljevo, apartments under €100,000 are still available, but rising demand will push up the price per square metre there as well. In Kraljevo, the price per square metre has increased by 400 per cent compared to the period during the coronavirus pandemic. It should also be noted that much higher-quality apartments are being built today than in the past,” Šajkunić concluded.
Figures
* 6,645 housing loans for young people have been approved
* €75,000 is the average loan amount taken by young people
* €100,000 is the threshold up to which the state provides subsidies
Key facts about youth housing loans
* 1% deposit
* minimal or abolished processing fees, notary costs, and land registry fees
* subsidised interest rate
* fixed interest rate of 1.5% for the first six years
* possibility for young people without permanent employment to obtain a loan
(Kurir, 28.04.2026)