Apartment prices won't fall, but they won't skyrocket either - When is the right time to purchase?

The real estate market in Serbia ended the previous year on a stable note, according to data from the Republic Geodetic Authority for Q4 2024. Apartment prices continue to grow moderately but steadily, while the number of transactions significantly increased.

A greater number of purchases through housing loans indicates a very active market. Read on to find out how much was invested in real estate!

Slight price increase in the apartment market

Apartment prices across Serbia continued to rise in Q4 2024, but without sharp jumps.

• The annual price growth rate reached 5.05%.

• The quarterly growth rate remained stable – 1.28% in Q4 compared to 1.26% in Q3.

These numbers point to a mature and predictable market, with no sudden fluctuations that could unsettle buyers or investors.

Miloš Mitić, CEO of the City Expert real estate agency, comments on the official data, highlighting the significant increase in loan-based purchases. Government measures on limiting interest rates and a more stable Euribor rate had a positive impact on housing loan conditions.

Mitić explains that mortgage buyers are crucial drivers of market activity. Although statistically they account for only 25% of total transactions, they influence cash buyers as well. Serbia’s market is fundamentally based on chain purchases, so one mortgage transaction often triggers further cash transactions.

“The financial market has shown stability and solid capitalization, overcoming the uncertainty that came with rising interest rates and brought a slowdown in purchases. Today, buyers have largely adjusted their expectations — a 5% interest rate has become the new normal. Given the current conditions, we don’t expect major fluctuations in the near future,” concludes Mitić.

Old vs. new construction: Different pace of growth

When segmented by property type, both old and new construction saw price increases, with new builds growing slightly more:

• Old apartments: +4.78% year-on-year (compared to 4.68% in Q3)

• New builds: +5.52% year-on-year (compared to 5.30% in Q3)

“We expect an active market with demand exceeding the quality supply, which will maintain the mild upward price trend. We don’t foresee a price drop, nor a sharp increase — simply put, higher demand than supply naturally leads to proportional price growth,” says Mitić.

Highest market activity in the past two years

Q4 recorded the highest number of property transactions in the last two years:

• 13,372 apartment sales were concluded

• Total market value of transactions reached €1.3 billion

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