The catering and tourism sector felt the first and strongest blow of the pandemic, but many other economic activities suffered major disruptions or decline in sales. This also happened in the segment of real estate sales and purchases.
According to real estate professionals, the situation in the previous two months has been completely different from what they are used to, as the business has come to an almost complete standstill and many agencies have closed down.
In the last few days, things have been changing for the better, real estate agencies have re-opened even if the consequences of the previous period are visible. The market will gradually improve, although how quickly will depend on many factors, mainly the interest of buyers and the supply of real estate. However, stabilisation can be expected at the end of May or, more likely, in June.
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As far as prices are concerned, no major differences from the previous period are expected for the time being, but it is possible that, depending on the town, the supply and the number of buyers, prices may be slightly lower.
According to the owner of the Bomil real estate agency, based in Novi Sad, Bojan Miljanovic, which has been in business for 25 years, nothing similar to the current situation has ever happened:
“Basically there has been a total breakdown in the real estate market since mid-March, and we only started working again at the end of April,” he said.
He adds that the market is slowly waking up, but it is still under review.
He also points out that, although it cannot yet be said with certainty, it is possible that prices of real estate (per square metre) in Novi Sad may be slightly lower, between 10 and 20%, than those prior to March.
“The price per square metre of real estate depends on a number of factors. Until mid-March, in Novi Sad, the price per square meter of an apartment in a new building was about 850 euro in the suburbs and up to about 2,000 euro per square metre in the most attractive locations in the centre of the town. Although many people thought that was a lot, apartments were selling without major problems. After this hiatus, we will see how the market will react. For now, there are not many buyers and, apparently, sellers are ready to offer properties at slightly lower prices”.
Even in Subotica, in the words of the director of the Kastor real estate agency, Zeljko Maravic, it is difficult to predict what will happen with the prices of real estate, but it is certain that everything will depend on the interest of buyers.
Maravic also emphasizes that in the past period the finished work now started in March and April, which helped to overcome the interruption of activity, and that the state aid, which is intended for businesses, will certainly contribute to a revival.
(Srbija Danas, 10.05.2020)
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