Millennials in real estate: How do young people buy apartments in Belgrade, Serbia?

In the world of real estate, millennials, born between 1981 and 1996, represent a significant group of buyers, particularly its older members. This generation, which grew up during the digital revolution, is now at a stage where they are seriously considering acquiring their own property. In today's blog, we analyze how they are coping with the challenges of buying their own properties and what their specific criteria are.

More and more millennials are buying apartments

Millennials are a generation that grew up during economic instability in the Balkan countries, which has influenced their attitudes and approach to purchasing real estate. Despite challenges such as high prices and uncertain careers, more and more young people are managing to buy their first apartment. According to official data, young people under the age of 30 make up about 15% of apartment buyers in Serbia, which is a significant improvement compared to previous years.

Who are the young real estate buyers, and what locations do they choose?

One of the key factors for millennials is financial stability. Most young buyers come from the IT industry, but also from other sectors such as economics, law, and construction, shares Miloš Mitić, director of City Expert. Young professionals most often buy properties through housing loans, using tax relief for first-time homebuyers as an additional incentive. A certain number of young buyers have acquired the financial ability to purchase property through inheritance and the sale of assets.

When it comes to locations in Belgrade, most of them choose apartments on the outskirts, where prices are more affordable.

"If we talk about locations, it's mostly the outskirts of Belgrade. We're talking about Mirijevo, the more distant part of Voždovac, then Rakovica. Krnjača is an option, as are Zemun, Batajnica, and Surčin, which is becoming a new attractive location where the price per square meter is below 2,000 euros. These are mainly apartments ranging from 2,000 to 2,200 per square meter, matching their financial capabilities. The apartments are mostly up to 50 square meters, with a total price ranging from 100,000 to 120,000 euros," Mitić explains.

Budget as the biggest limiting factor

As expected, the budget is one of the biggest challenges for young buyers when purchasing real estate.

"In general, their criteria are that the apartment is functional, that the micro-location has adequate additional amenities, and most importantly, the budget available to them, i.e., the price," says Miloš Mitić. So, even if the apartment is not near the city center, if it meets the basic criteria and offers good connectivity to the rest of the city, they consider it an acceptable choice.

Alternative strategies for young buyers

To solve their housing needs, many young buyers consider alternative options.

Buying an apartment that requires renovation can be an appealing strategy, as after the investment, the property's value can significantly increase, and money for renovations can be gathered gradually. Additionally, some young couples opt for a combination of cash and housing loans to secure the necessary funds for the purchase. In this scenario, one person takes out a cash loan, obtaining money for the down payment, while the other takes a housing loan.

These strategies require careful planning and financial discipline, but they present opportunities that allow young people to find a solution to their housing needs. There are also subsidies and incentives, such as VAT refunds for first-time homebuyers, which can further assist young buyers.

Millennials, although faced with challenges, are successfully adapting to the real estate market and finding ways to achieve their dreams of owning their apartment. The real estate market will certainly continue to evolve and adapt to the needs and possibilities of its most dominant buyers, which millennials are gradually becoming.

If you want to explore the current real estate offer, follow the City Expert website with the largest number of listed apartments in Belgrade, Novi Sad, and Niš. By working with us, you have the opportunity to buy or rent an apartment without any agency fees, while receiving legal support from agents throughout the process. We wish you a happy beginning and an even better outcome in the mission called: buying your own home!