The most profitable places to buy property in Belgrade! Real estate investing in 2024.

Those who have decided to turn their money into a reliable investment are surely considering buying property to either rent out or sell when its market value increases. This is certainly a good plan, as the real estate market is traditionally resistant to global crises. In other words, no matter what happens on the geopolitical or economic front, a return on investment is assured. For foreigners, buying real estate in Serbia can secure a residence permit if you want to stay in Serbia.

In recent years, there has been noticeable demand for properties in almost all municipalities of Belgrade. This is good news for those planning to invest, but it is also a warning, as the trend of high demand will continue to grow, along with the price per square meter. This means the key question isn't so much where to invest in real estate but rather when to do it.

For all investors, the crucial question is - how to get the most out of the smallest investment in the shortest possible time? Read our guidelines on investment property purchases in Belgrade.

New construction or renovation of older buildings?

Many turn to new construction because it is more attractive to potential future tenants and does not require initial renovations.

Although the price per square meter is generally higher in new construction compared to older buildings, most investment buyers conclude that it is more profitable to buy a new-build apartment. This is partly due to VAT refunds for the buyers of the first apartment and mainly due to the rising cost of renovations that would be necessary for older buildings.

There are exceptions when older buildings in certain locations are a much more attractive option than newly built ones. “The most common examples are apartments in the upper part of Dorćol," says Miloš Mitić, executive and operational director of City Expert.

"In some municipalities, such as Stari Grad and the central part of Dorćol, since it's the city center, there is certainly a limited supply of both older and new buildings. If an apartment appears there, for example, between 25 to 45 square meters, which is perfect for investment and is easy to rent out and ensures a quick return on investment, that apartment can have a price that matches or even exceeds that of new construction," Mitić reveals.

So, what is the right answer for investment buyers facing the dilemma - older buildings or new construction?

"The decision depends on whether the goals are long-term or short-term. There are investment buyers who purposefully buy apartments in older buildings that are in need of renovation, with much lower prices per square meter than average, precisely because of their poor condition. These are quick-return investors: they renovate the apartment, make it much more attractive to the market, and then their profit represents the difference between the purchase and sale price per square meter in a short period," says Mitić.

On the other hand, apartments under construction are a great opportunity to buy real estate at a lower price per square meter. The fastest-selling units in any new construction project are small apartments, up to 30-40 m², which owners usually use as investments. Check out our current offering of new constructions in all municipalities of Belgrade and contact our agents for detailed information on available apartments for sale.

The most popular residential locations in Belgrade

The most sought-after municipalities, such as Stari Grad, Vračar, Belgrade Waterfront, and New Belgrade, will not lose value and are thus the most reliable real estate investment on the Belgrade market, whether you plan to rent out the purchased apartment or sell it at some point.

This information is surely already well known to you, while it is less obvious to assess which new and peripheral neighborhoods will soon be in demand. New construction is already expanding in Mirijevo, as well as in all parts of the Zvezdara municipality, even those further from the center.

When it comes to new neighborhoods, it is worth investing in them because they are still in the development phase, so their value will inevitably rise. At this point, it is most profitable to buy properties along the metro line, from Mirijevo to Makiš. Additionally, new apartments in Surčin could be a smart choice to buy due to the preparation for EXPO 27.

Location, location, location

"If we are talking about most investment buyers who look for returns through rent, either long-term or short-term, location is definitely the most important factor, as it determines the price. Besides that, key factors are, of course, the quality of the building and the apartment, but essentially, location is paramount because it determines the maximum value of the apartment.”

He adds that, regardless of the building's characteristics in a municipality outside the city center and all other added values it has, it can never reach the square meter price that is the average of central municipalities.

Micro-location - a new rule?

Besides location and building quality, additional amenities and micro-location are the next factors that determine the attractiveness of an investment. Because of this factor, modern condominiums with numerous amenities within the complex are increasingly appearing.

What sets any urban location apart as attractive is easy access to key amenities. When it comes to investment, the property you will most easily rent out or sell in the future should ideally be near schools, universities, health centers, shops, and other important facilities. Good connectivity to the city center, numerous public transport lines are always desirable when choosing a property for investment. Considering all this, it's clear why central municipalities (Stari Grad, Savski Venac, Vračar, narrow Palilula…) have traditionally been the most expensive locations. New Belgrade is immediately behind them in popularity, especially for people from the business sphere, as the largest business centers are located here.

Are you ready for investment?

If investing in real estate sounds appealing to you, embark on this endeavor armed with all the knowledge. Our agents will help you completely free of charge to find the best apartment offer for the money you plan to spend and provide full legal support.