The real estate market in Serbia showed a slight increase in activity in the second quarter of 2024 on a year-over-year basis. What does this mean for real estate buyers and sellers?
A recently published report by the Republic Geodetic Authority indicates that the properties sold were more expensive compared to the previous year, as the total value of real estate transactions was 8.2% higher, while the number of sales did not increase proportionately, rising only by 0.6%. This indicates a slight stagnation as there are no fluctuations compared to the previous period, but previous market activity is still maintained with a high number of transactions and resilience to negative economic factors.
The total number of sold properties from May to August was 30,837, with their total value amounting to €1.8 billion, according to RGZ data.
What types of properties were sold?
The largest share of transaction value comes from the sale of apartments, which accounted for 56% of the total value, or €979.5 million. The sale of houses made up 9% of the total value, with a turnover of €150.2 million, while the turnover of construction land amounted to €147.2 million (8% of the total value). Business premises accounted for 4% of transactions (€77 million), while the sale of agricultural land reached €52.5 million or 3% of total transactions.
Increase in apartment purchases through loans
When it comes to financing methods, 23% of apartments were financed through housing loans, which is a significant increase compared to last year's 16.5%. Business banks, supported by the Bank of Serbia, are showing stability and resilience to internal and external economic factors. The stabilization of interest rates, due to the current restrictions on interest rates, increases citizens' confidence in the banking sector. In Serbia's real estate market, when a buyer purchases a property with a loan from a seller, the proceeds from the sale are often reinvested in new real estate. This way, the increase in the number of credit buyers indirectly affects the rise in the number of cash buyers and the total turnover, as current data shows.
Slight decline in the capital; growth in Novi Sad and Niš
Belgrade, as the capital, remains the expected leader in the real estate market in Serbia, with €555.6 million spent on property purchases. However, in the second quarter of 2024, Belgrade recorded a slight decline in the number of sales contracts by 1.1%, while Novi Sad (+22.5%), Kragujevac (+22.9%), and Niš (+15.6%) experienced noticeable growth.
The most expensive square meter cost €9,125
The most expensive square meter of an apartment was sold in Belgrade Waterfront for €9,125, while the most expensive apartment in the same location was sold for €955,000 and has an area of 145 m². The most expensive house was sold in the municipality of Savski Venac for €1.5 million, and the most expensive parking space was paid €60,000 in the Belgrade municipality of Novi Beograd.
Forecast for the upcoming period
Data from the Republic Geodetic Authority report provides an objective overview of the real estate market in Serbia, indicating current stagnation and the previous level of activity and turnover. Although parameters vary between cities, this conclusion remains relevant for the entire market.
According to Miloš Mitić, the CEO of City Expert, further stabilization of the market and economic recovery is expected in the coming period, which is associated with a slight decline in Euribor. In the next year, we may see an increase in turnover, which could consequently lead to a new rise in prices. These forecasts rely on the current market dynamics, with the note that any change in the global geopolitical landscape could impact the local economy.
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