Although the price of building an apartment block is almost the same in all parts of Serbia and starts from 600 to 700 euro per square metre of an apartment, in some parts of Belgrade a square metre is worth as much as 8,000 euro.
The reasons are expensive building land plots, luxury decoration and higher demand than supply for some locations.
This astronomical value could further increase in the spring if, in addition to the 40% increase in the price of iron, the prices of other building materials, such as thermal insulation blocks or carpentry, rise, which could bring the costs above the current 700 euro.
It is estimated that in some cities, especially Belgrade, the market value of a square metre of residential housing could increase between 5 and 10%, because 70% of the price construction is building material and 30% labour.
However, for now, it is still uncertain how real estate will react to these corrections and those that are announced, since the price of a square metre is significantly influenced by the supply-demand ratio.
What is certain for Belgrade is that luxury apartments are still attractive and there is more demand than supply, so experts estimate that prices will go up.
However, the cost of building material is not decisive in determining the value; the main thing is the building land, which is more expensive in Belgrade, and according to estimates has a 30% share in the price of real estate, and in some attractive locations it costs even more, up to 100,000 euro.
Precisely because of this, but also because of the luxurious interior decoration of some properties with top quality materials, it is estimated that the prices of luxury apartments could see the greatest increase in price per square metre.
(Blic, 09.02.2021)
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