In the last 12 months, real estate prices in Serbia increased by 23%. Apartments in new buildings, as well as in old buildings, in central Serbia, Vojvodina, but also in Šumadija and in the south, have become more expensive.
The biggest price jump was recorded in Niš, the lowest in Kragujevac. Real estate experts believe that the increase in real estate prices in Serbia is influenced by the demand for buying real estate as a means of investing and keeping money safe.
In Belgrade, compared to the first quarter of last year, the price of a square metre of living space increased by 15% in old buildings and 9% in new buildings. According to the latest statistical data, the cheapest square metre in the capital was 400 euros, the most expensive 4,902 euros, and an average 1,680 euros. When it comes to newly built apartments, prices range from 600 to 9,115 euros, while the average price of new construction is 2,165 euros per square metre.
“A new apartment in Novi Sad costs an average of 1,505 euros per sqm, 16% more than a year ago, while one in an old building, the prices of apartments range from 1,255 euros to 1,517 euros per sqm. At the beginning of 2021, apartments in Kragujevac were sold for 1,011 euros in new buildings and 772 euros in old buildings on average, which is 5% less than the current prices,” says the State Geodetic Institute (RGZ).
The biggest price difference was noticed in real estate in Niš. In just one year, an apartment of 50 sqm in an old building costs almost 10,000 euros more. Instead of last year’s price of 831 euros, now a square metre of living space in this southern Serbian town costs an average of 1,020 euros, an increase of as much as 23%.
Prices of older apartments in Novi Sad have gone up by 250 euros per square metre, in Belgrade by 220 and in Niš by 190 euros. The lowest price increase is in Kragujevac, 30 euros per square metre. According to statistics, the most expensive properties are located in Belgrade.
For Nebojša Nešovanović, a real estate analyst, it is not uncommon for weaker real estate markets, such as Niš, to experience greater price fluctuations. On the other hand, the continuous increase in apartment prices in Serbia is explained by high demand and weak supply.
He believes that the higher prices are mainly result of wealthy people investing in real estate for fear of inflation. “Recently, there has been a growth in the number of people who have earned large sums of money and decided to invest in real estate for fear of inflation. They are the ones who are to blame for growing real estate prices. Then again, the supply is still limited and inert, and a mass construction could change that,” Nešovanović added.
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