Serbian property prices have risen dramatically since 2018-2020. But what is actually keeping them at today's levels, and could they come down?

According to Miloš Mitić, CEO of City Expert, the leading Serbian real estate agency, the current trend is closer to moderate growth than to falling prices.

1. Demand is still strong

The basic rule of real estate still applies: prices follow supply and demand.

Serbia has seen a large increase in residential construction, but in the most sought-after parts of Belgrade, Novi Sad and other major cities, demand continues to absorb much of the available supply.

2. Building a property costs more than it used to

Materials, labour, energy, and logistics have all become more expensive, making new-build apartments more expensive for buyers as well. The war in Ukraine and disruptions in global supply chains added further pressure. Even after supply chains stabilized, costs did not return to their previous levels.

3. Luxury projects are changing entire neighbourhoods

Serbia's luxury residential market has expanded significantly, with Belgrade Waterfront being one of its best-known developments.

Some developments now reach €5,000–€6,000 per square metre and above in Belgrade. When a high-end project establishes a new price level in an area, surrounding properties can gradually move upwards as well.

4. A home is still an investment

A significant part of Serbian property demand comes from buyers who are not purchasing a home to live in. According to Mitić, investment buyers account for around 20–30% of the market, and their share can exceed 50% in some luxury projects. Given the limited range of alternative investment opportunities in Serbia, real estate remains an attractive option for preserving capital.

5. More buyers can access financing

Government measures, including subsidized housing loans for young people, have supported demand in the more affordable segments of Serbian real estate.

Lower interest rates have also made purchasing more accessible when financing conditions allow it.

So, could prices fall?

According to Mitić, real estate prices should not fall unless there is a major economic shock, such as a significant slowdown in economic activity, rising unemployment, or similar.

However, Belgrade, Novi Sad, and Niš are still more affordable than many Western European cities, which makes it an interesting time to invest before prices move closer to those in more developed markets.

Whether you plan to rent out the property, live in it, or sell it later, buying at today's prices could offer attractive long-term potential. 

Let City Expert help you find the right property for your goals. Our offer includes a wide selection of registered apartments, while our experienced agents handle the entire process in accordance with Serbian law.