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Real Estate Prices in Serbia Continued to Rise in 2024

In December 2024, compared to November, there was no significant change in real estate prices in Serbia. Although 2024 saw a slight slowdown in demand, the price per square meter continued to rise. This trend is also reflected in property prices listed on the 4zida website.

 

The average listed price for apartments in Belgrade in 2024 on the 4zida portal was €2,672 per square meter, while the price for houses was €1,183 per square meter.

 

When comparing the listed price per square meter in the last quarter of 2024 to the end of 2023, the Savski Venac municipality (which includes Belgrade Waterfront) experienced a price increase of around €850 per square meter. Prices rose from €3,276 at the end of 2023 to €4,129 in the last quarter of this year, marking a 20% growth.

In Obrenovac, the price of listed apartments increased by nearly €200 per square meter by the end of this year compared to the end of 2023, rising from €1,354 to €1,550. Interestingly, in Mirijevo, the price per square meter remained almost unchanged, shifting slightly from €1,998 at the end of 2023 to €1,991 in December 2024.

 

It is important to note that these are listed prices, and the actual transaction prices are traditionally lower. Therefore, the RGZ Price Index, once published, will provide a more accurate indicator of these changes.

Where to Find the Most Affordable Apartments in Belgrade

In recent years, the demand for apartments in Belgrade has been concentrated in central city municipalities. However, there are indications that some buyers are turning their attention to the outskirts, where larger living spaces can be found at more affordable prices, sometimes as low as €900 per square meter.

 

 

 

Increasing Interest in Peripheral Areas

 

According to data from the portal 4zida.rs, published in Euronews Serbia, municipalities such as Zemun, Voždovac, Obrenovac, and Grocka are experiencing increased interest from buyers. This trend is also observed in Zvezdara (particularly in the Mirijevo neighborhood), Palilula (Borča and Krnjača), and Rakovica (Miljakovac).

 

 

 

Real Estate Prices by Belgrade Municipalities

 

In October, compared to September, there were no significant changes in property prices:

  • Medaković Padina: Average price per square meter is €1,989.
  • Mirijevo: €1,970.
  • Borča: €1,550.
  • Miljakovac III: €1,730.

The most affordable apartments in suburban areas can currently be found in Obrenovac, Sopot, Barajevo, and Mladenovac, where prices range from €900 to €1,500 per square meter, depending on location, size, and the condition of the property. Buyers should exercise caution regarding property conditions, as this often explains the relatively low prices.

 

 

 

The Most Expensive Municipalities

 

The most expensive municipalities in Belgrade remain Vračar, Stari Grad, and Savski Venac, with prices ranging from €3,500 to €4,000 per square meter and occasionally exceeding these amounts.

 

 

Popular Choices Among Russian Buyers

Russian citizens are most interested in purchasing apartments in Novi Beograd, Vračar, and Voždovac, but they also show interest in peripheral areas such as Zemun and Zvezdara. However, their share in the Belgrade real estate market currently does not exceed 5%.

 

 

 

Luxury Apartment Prices in Belgrade

 

In October, consulting firm Kordon conducted a market analysis of approximately 90 of the most attractive residential projects in Belgrade, with prices ranging from €2,000 to €12,000 per square meter. Below is an overview of prices by municipality:

 

 

Savski Venac

 

Finding a luxury apartment on Savski Venac for less than €4,000 per square meter is challenging. Exceptions include projects in Dinarska Street (€3,300), Miloja Đaka (€3,600), and Talija in Belgrade Waterfront (€3,600–€4,000).

In BW Rima, prices range from €3,600 to €4,300 per square meter. Apartments in Merin and Kalman (Dedinje), as well as BW Bella (Belgrade Waterfront), are priced between €4,000 and €5,000.

 

Projects like Eden (Dedinje) and Central Plaza (Pasterova) are priced between €5,000 and €6,000. Apartments in Riviera (€8,200+), Perla (€7,000), and Viktorija (€7,300) in Belgrade Waterfront are in the high-end range. Upcoming projects near TC Galerija, such as Dolče (€7,200) and Bonaca (€7,500), compete with King Circle (Slavija), which ranges from €6,500 to €7,500.

 

 

 

Novi Beograd

 

The highest prices in New Belgrade are in Block 26, where square meter prices exceed €7,750. In Novi Minel, prices range from €3,300 to €5,280, while The One (near Airport City) and Soul 64 are priced up to €5,000. Other projects, such as Velport and Airport Garden, are priced around €4,100 per square meter.

 

 

Čukarica and Rakovica

Luxury projects in these areas are rare, with prices ranging from €2,200 to €3,850 per square meter.

 

 

 

Zvezdara

Prices in Zvezdara are similar to those in Čukarica and Rakovica, ranging from €2,200 (Park Forest) to €3,850 (Zahumska Street).

 

 

 

Vračar

Vračar is home to luxury apartments priced between €4,500 and €5,000 per square meter. High-end properties, such as those in Diatreta (€5,000–€6,000), Šumatovačka (€5,540), and Briksvel (Stojana Protića, €5,700), reach prices of €6,270 in Katanićeva Street.

 

 

 

Stari Grad

The most affordable luxury apartments in Stari Grad are located in Venizelosova Street (Novi Dorćol), priced between €3,500 and €5,000. Prices reach up to €6,600 in Belgravia (Gospodar Jovanova Street).

 

 

 

Zemun

In Zemun, apartment prices range from €2,585 to €3,740 per square meter, according to the available data.

Belgrade’s real estate market continues to offer a variety of options, from affordable apartments on the outskirts to high-end luxury properties in prime locations, catering to a diverse range of buyers.

Semiannual Report on Apartment Price Trends

Apartment prices in Serbia for September have not significantly changed compared to August of this year. According to data from the agency 4zida, the average advertised apartment price in Belgrade in September was 2,640 EUR per square meter, showing an increase of around 40 EUR since the beginning of the year. In the capital, prices range from 1,575 EUR per square meter up to 3,920 EUR. The average apartment price per square meter in Novi Sad is 2,400 EUR, and in Niš, it is 1,580 EUR.

 

Although price fluctuations have been minimal, some cities have experienced a price drop compared to the beginning of the year, including Subotica, Zrenjanin, and Kragujevac. Prices in Belgrade’s Mirijevo neighborhood have risen from an average of 1,800 EUR (end of last year) to 2,000 EUR, as well as in certain parts of Miljakovac. However, advertised prices are traditionally higher than transaction prices.

 

 

Increase in Rental Prices

 

Rental prices in all major cities, including Belgrade, Novi Sad, Niš, and Kragujevac, have increased compared to the same period last year. In Belgrade and Novi Sad, the average rent for apartments has risen by about 7%, in Niš by 5%, and in Kragujevac by around 10%.

The average advertised rental price for a studio apartment in Belgrade is around 300 EUR. A one-bedroom apartment averages 390 EUR, a one-and-a-half-bedroom apartment 470 EUR, and for larger apartments, prices range from 680 EUR up to over 1,500 EUR.

 

In Novi Sad, the average monthly rent for a studio is about 270 EUR, in Niš around 220 EUR, in Kragujevac 175 EUR, and in Subotica, the average is 170 EUR.

 

 

 

Prices of Newly Built Apartments, First Half of 2024

 

According to data from the Republic Geodetic Authority, the average price of newly built apartments in the Republic of Serbia in the first half of 2024 was 215,481 RSD, representing an increase of 0.8% compared to the first half of 2023. During the observed period, prices ranged from 61,013 RSD per m² in Bujanovac to 520,616 RSD in Belgrade’s municipality of Savski Venac.

 

In terms of municipalities, the highest prices for newly built apartments were recorded in Belgrade municipalities, although the average price in urban areas fell by 2.3% compared to the first half of 2023, amounting to 307,297 RSD per m². Alongside Belgrade, high prices were also noted in Novi Sad, Užice, Čajetina, Vrnjačka Banja, and the Niš municipalities of Medijana and Crveni Krst.

 

 

Source:

https://www.stat.gov.rs/sr-latn/vesti/statisticalrelease/?p=15292

 

https://n1info.rs/biznis/cene-stanova-beograd-novi-sad-septembar-2024/

Serbia in Focus: Japanese Business Giants Explore Investment Opportunities

A delegation of over 100 Japanese business leaders recently visited Serbia, initiating discussions with potential local partners, government officials, and Japanese firms already established in the country. This visit marks a preliminary but significant step towards future Japanese investments in Serbia, offering potential economic growth and new job opportunities.

 

The delegation emphasized that investment decisions by Japanese companies are carefully considered and often integrated into long-term strategies. The arrival of new investments could realistically be anticipated around 2027, aligning with major international events, yet it’s early to confirm specific projects. Japanese firms are evaluating how new production sites, management hubs, or research centers in Serbia could strengthen their European operations.

 

One key advantage Serbia offers is its educated workforce, with high English proficiency rates—a valuable trait for Japanese companies with global ambitions. Additionally, Serbia’s favorable Stabilization and Association Agreement with the EU supports seamless trade, making it an appealing choice for supply chain expansion across Europe. This initial engagement could pave the way for substantial partnerships, bringing technology, expertise, and market access to Serbia’s economy.

 

 

Source: https://forbes.n1info.rs/

EIU: Serbia, Vietnam, and Romania Lead Business Environment Improvements Over the Past 20 Years

In a recent study conducted by the Economist Intelligence Unit (EIU), Vietnam, Serbia, and Romania have been highlighted as the countries that have seen the most significant improvement in their business environments over the past two decades. The findings are based on the EIU’s comprehensive long-term analysis, which has tracked progress across multiple regions worldwide.

 

 

 

 

Significant Progress in Eastern Europe and MENA Region

 

The EIU report reveals that several countries in Eastern Europe, including Serbia, Romania, and Croatia, as well as nations in the Middle East and North Africa (MENA) such as Morocco, Saudi Arabia, and Israel, have made considerable strides in enhancing their business environments between 2003 and 2023. This period has seen these countries take substantial steps toward improving conditions for businesses, driven by political, economic, and infrastructural reforms.

 

Among the leading countries in this transformation, Vietnam ranks first, having achieved the most substantial improvement according to the EIU Business Environment Rankings. These rankings, which have been published since 1995, evaluate the business environments of over 80 countries that together account for more than 90% of global GDP. Serbia has been identified as the second-most improved nation in this index, reflecting the country’s remarkable progress in reshaping its business landscape.

 

 

 

 

 

Serbia’s Journey: From Post-Conflict Economy to Business Reformer

 

Serbia’s improvement has been particularly striking, as noted by the EIU analysts. Starting from a relatively low base, Serbia’s business environment had been severely affected by the country’s post-war recovery and the economic sanctions it faced during the 1990s. Analysts highlight that Serbia was one of the most economically damaged countries to emerge from the dissolution of the former Yugoslavia.

 

“The most notable progress in Serbia occurred in the early 2000s, following the overthrow of Slobodan Milošević’s regime, the end of international isolation, and the lifting of economic sanctions,” the EIU report states. As a candidate for European Union membership, Serbia has benefited from increased trade with EU member states and has received substantial financial assistance from the bloc. Additionally, favorable loans and infrastructure support from China have played a key role in enhancing Serbia’s economic development—a trend expected to continue through the 2024–2028 period.

 

Key Areas of Improvement for Serbia

 

According to the detailed criteria used in the EIU study, Serbia ranks second among the ten most successful countries in terms of transforming its business environment. This is largely due to significant progress in areas such as foreign trade, financial sector reforms, infrastructure quality, and macroeconomic stability.

However, there are areas where Serbia still faces challenges. The country lags behind in labor legislation, employment practices, and overall conditions in the domestic market. Furthermore, Serbia scores lower on the newer criteria of “preparedness for technological changes and challenges,” which was incorporated into the EIU business environment reports in 2016.

 

 

 

 

 

Future Outlook: Maintaining Momentum

 

EIU analysts predict that Vietnam, Serbia, and Romania will continue to lead the rankings for countries that have improved their business environments, with sustained momentum through 2028. These countries are expected to remain at the forefront of business reforms, driven by ongoing investments and international partnerships.

 

Nonetheless, new contenders are emerging. “Several other countries are poised to enter the top 10 over a 25-year period from 2003 to 2028,” according to the EIU experts. India, Kenya, and Greece are among the nations expected to join the ranks of the most successful business environment reformers by 2028, adding further competition to the list.

Historic Moment! Serbia Receives Investment Credit Rating for the First Time

One of the most reputable global credit rating agencies, Standard and Poor’s, has released its latest report on the Serbian economy, marking a historic achievement for the country. Serbia has, for the first time, received an investment credit rating, a milestone that will play a pivotal role in Serbia’s economic growth and its positioning on the international stage.

 

After nearly a decade of effort and economic stabilization, Serbia has attained a BBB- rating, officially recognizing it as a country with favorable conditions for investment. This rating not only assesses the nation’s ability to repay its debts but also signals a significant turning point in Serbia’s economic trajectory. With this new status, Serbia enters the group of countries deemed low-risk for investors, which will result in more favorable borrowing conditions and enhanced access to international capital markets.

 

The increase in Serbia’s credit rating brings numerous benefits to domestic companies, which will now find it easier to attract foreign investments. This achievement opens doors to lower interest rates, faster financing, and better terms for long-term investments. Companies previously restricted by the former credit rating can now consider Serbia as a reliable investment destination, accelerating economic growth and creating new jobs.

 

For Serbia, which is now the first country in the Western Balkans and the only EU candidate country to achieve this status, the investment credit rating represents a crucial step forward. It reflects stability, security, and long-term reliability, sending a strong signal to international investors that Serbia is a safe and low-risk destination for investments.

 

 

 

What is an Investment Credit Rating?

 

A country’s credit rating serves as a measure of its ability to repay debts and meet financial obligations. Đorđe Dimitrijević, the Director of the Open Market Operations Department at the National Bank of Serbia, explains that credit ratings are a key indicator for investors evaluating potential investments in a country, whether through direct investments or by purchasing government bonds. A higher credit rating denotes a lower risk and a greater ability for the country to service its debts efficiently.

 

The benefits of a higher credit rating are manifold. In addition to attracting greater foreign investment, the state will gain access to more favorable borrowing terms, making it easier for both the government and domestic companies to secure financing. This, in turn, contributes to faster economic growth and overall stability.

 

 

 

How Do Leading Agencies Assess Ratings?

 

The world’s leading rating agencies, including Moody’s, Standard & Poor’s, and Fitch, use various economic indicators to determine a country’s credit rating. In their evaluations, they consider factors such as GDP, inflation, labor market performance, as well as the effectiveness of monetary and fiscal policies, debt levels, institutional development, and geopolitical context. The credit rating scale consists of 22 levels, with countries divided into two main categories—those with investment-grade ratings (the top 10 levels) and those with non-investment-grade ratings (the lower 12 levels).

 

 

 

Benefits of an Investment Rating

 

Achieving an investment-grade rating for Serbia means reduced risk for investors, leading to lower risk premiums and more favorable financing conditions. It also enables Serbia to attract capital from more conservative investment funds that only invest in countries with investment status. These improvements will collectively drive faster economic growth, higher employment, and better conditions for both domestic companies and foreign investors.

 

In the past decade, Serbia has significantly improved its credit rating, advancing by three levels and positioning itself just below the investment-grade category. With this new rating, Serbia is now opening up a wide array of opportunities that will further enhance the country’s economic potential.

 

The trend of slowing and stabilizing real estate prices in Serbia continues

Real estate prices in Serbia have increased by 5% to 20% this year, with the highest prices per square meter recorded in Belgrade. Apartment prices have risen compared to last year’s average, which was already high in comparison to the previous year. Prices have increased the most in Vojvodina, while Belgrade remains the city with the most expensive properties in Serbia.

In August, apartment prices in Belgrade ranged from €2,000 to €10,000 per square meter, with the price difference between new construction and older buildings ranging from 10% to 20%.

 

The average price of new construction in August was around €3,000 per square meter, while the average price for older buildings in Belgrade was between €2,300 and €2,400.

Prices of older apartments depend on factors such as the building’s age, how well the apartment has been maintained, and how much has been invested in it. Smaller apartments, around 35 square meters, are the most expensive in the older building market due to their limited supply. Those located in the very center of Belgrade range from €3,500 to €5,000 per square meter.

 

 

 

Increase in rental prices

 

According to the specialized real estate website nekretnine.rs, rental prices for apartments in Belgrade increased in all municipalities in August compared to July, except in New Belgrade. Rents in the city center were €15.7 per square meter in July and rose to €16 in August. In Mirijevo, rents were €9.3 per square meter in July, increasing to €9.5 per square meter in August. Voždovac also saw an increase, from €12 in July to €12.2 per square meter in August. A similar situation occurred in Vračar, where the price went from €15.3 per square meter in July to €15.6 in August. Only New Belgrade saw a slight decline in rental prices—€15.3 per square meter in July compared to €15 in August.

 

 

 

Rents in Novi Sad

 

Rental prices in Novi Sad saw an increase in almost every municipality. The situation is similar to Belgrade, as only Novo Naselje experienced a slight decrease, with the average price dropping from €10.5 per square meter in July to €9.7 per square meter in August. The city center, Podbara, and Grbavica saw slight increases in August, with the city center rising by €0.5 per square meter, Podbara by €0.6, and Grbavica by €0.2.

 

 

 

Apartment price index: The trend of slowing real estate growth continues in Serbia

 

According to the report from the Republic Geodetic Authority, in the second quarter of 2024, there was further stabilization of apartment price growth in Serbia. This continues the trend of slowing growth that has been ongoing for seven consecutive quarters.

The Republic Geodetic Authority’s apartment price index in the second quarter of 2024 was 164.56, representing a 4.68% increase in apartment prices compared to the same period last year. When looking at this year, prices in the second quarter increased by 1.26% compared to the first three months.

In terms of apartment prices, as in previous quarters, the strongest growth was recorded in southern and eastern Serbia, at 7.40%. Šumadija and western Serbia saw an increase of 5.05%, Vojvodina 4.49%, and Belgrade 3.98%.

 

 

 

New construction prices are rising faster than older buildings

 

Prices of new apartments have been rising faster than those of older buildings. In the second quarter, the prices of older apartments in Serbia increased by 4.41%, while new construction—specifically purchases from investors—saw a higher annual growth rate of 5.15%.

During the second quarter of this year, demand for apartments increased, with 11,532 recorded apartment sales, which is 7.5% more than in the same period last year. The total value of the real estate market reached €978 million, marking a 7.3% year-on-year increase.

In Belgrade, there was a slight drop in apartment sales by 0.57% and a 5.61% decrease in transaction values. The largest growth in both the number of sales and transaction values was recorded in southern and eastern Serbia, where apartment sales increased by 16.7%, and transaction values surged by 37%. Vojvodina saw an increase in apartment sales by 14.03% and transaction values by 35.7%.

Serbia’s Tourism Revenue Hits €1.5 Billion from Foreign Visitors

Between January and July this year, Serbia has generated a record-breaking €1.5 billion in revenue from foreign visitors, surpassing the total earnings from international tourism for the entire year of 2019. This remarkable growth highlights Serbia’s expanding presence as a key player in the global tourism market.

 

The latest figures, released by the Ministry of Tourism and Youth, show that foreign exchange inflows have surged by 16% compared to the same period last year, which was already a record year for the country. Furthermore, the earnings from international visitors in 2023 are almost 10% higher than those achieved throughout 2019, setting a new benchmark for Serbia’s tourism industry.

In a broader global context, Serbia’s impressive growth has been noted by the World Tourism Organization in its September barometer, which places the country among the global leaders in revenue growth from international tourists compared to pre-pandemic levels. The report indicates that Serbia’s earnings from foreign visitors have more than doubled, illustrating a significant post-pandemic recovery.

 

Tourism has become one of the most vital contributors to Serbia’s export of services, with foreign exchange revenues now accounting for approximately one-fifth of the total service exports. The continued rise in tourism earnings emphasizes the sector’s growing importance to the country’s economy, positioning it as a crucial engine for future growth and development.

The Ministries of Education of Serbia and China have formalized an agreement on the mutual recognition of diplomas.

This agreement opens up new opportunities for students from both countries by simplifying the process of continuing education or seeking employment abroad, as their academic qualifications will be officially recognized in the other country. This step strengthens educational ties between Serbia and China, creating more favorable conditions for students seeking international experience and professional development.

Serbia’s IT Exports Surge: Four Billion Euros Expected

The Ministry of Information and Telecommunications recently announced that the export of products and services in the field of information and telecommunications technology (ICT) saw a significant growth of 18.84 percent in the first six months of 2024 compared to the same period last year, which was already a record year. This impressive growth contributed to ICT services exports reaching a value of almost two billion euros in the first half of the year, specifically 1.943 billion euros, representing a significant jump compared to the same period last year, when exports amounted to 1.635 billion euros.

 

Historical data shows that revenue from the export of this economic sector increased tenfold between 2012 and 2023, highlighting the importance and potential of the ICT sector for the Serbian economy. Based on current projections, the total export from this sector is expected to reach four billion euros by the end of the year, which would mark another record for this rapidly growing industry.

 

The Ministry of Information and Telecommunications emphasized that it will continue implementing various activities aimed at further accelerating the development of the ICT sector, recognizing it as one of the key drivers of overall economic progress in Serbia. These efforts include improving the business environment and creating all the necessary conditions to ensure the continued growth of this sector in the years to come.