As many as 70 percent of apartments in Serbia are paid for in cash and their prices are dictated by inflation, growing prices of construction materials and a lack of labour.
At the international conference titled “The Real Estate Market of Southeast Europe”, which gathered more than 150 experts, good news came from bankers as they envisage lower interest rates on housing loans next year.
Furthermore, Serbia is becoming increasingly appealing to international real estate developers. “Next year our focus will be on the development of new locations. We are developing new business parks in Novi Sad and Jagodina. Our plan is to build facilities spanning 150,000 square metres next year,” says Petar Kolognat from CTP Invest Serbia.
The demand for all types of real estate is also growing, while prices are at their maximum. However, this depends not only on demand but also on inflation in Europe and real purchasing power. In Belgrade, about 20,000 apartments are sold annually, which is a relatively small number.
“The good news is that the European Central Bank will relax its monetary policy probably starting September and this will consequently lead to the reduction of interest rates on housing loans”, says Marija Savić from Banca Intesa.
The problem in the domestic real estate market is the fact that the market cannot meet the requirements set by the EU’s Green Agenda.
“These requirements, in our case, relate to amendments to our Law on Spatial Planning and Construction, where facilities should possess the so-called green certificate, i.e. that residential buildings that currently don’t have energy passports must obtain them and carry out certain investments in order to obtain the energy passport of a certain level,” says Danijela Ilić from the National Association of Appraisers of Serbia.
In the last 10 years, the real estate market in Serbia has developed rapidly, but the accompanying infrastructure did not develop as fast and what is missing in Serbia are high-quality housing. Conference participants reminded that the strong demand and the insufficient number of properly registered apartments led to an increase in real estate prices.
This post is also available in: Italiano