Uncontrollable growth of real estate prices in Serbia

Over the past 12 months, real estate prices in Serbia have increased by 23%. Apartments in new buildings, as well as in old ones, in central Serbia, Vojvodina, but also in Šumadija and the south, have become more expensive.

The highest price increase was recorded in Niš, the lowest in Kragujevac. Real estate experts believe that the increase in real estate prices in Serbia is influenced by the demand for the purchase of real estate as a means of investing and protecting money.

In Belgrade, compared to the first quarter of last year, the price per habitable square meter has increased by 15% in old buildings and by 9% in new buildings. According to the latest statistical data, the cheapest square meter in the capital was at 400 euros, the most expensive at 4,902 euros and on average at 1,680 euros. As for new apartments, prices range from 600 to 9,115 euros, while the average price for new construction is 2,165 euros per square meter.

“A new apartment in Novi Sad costs on average 1,505 euros per m², 16% more than a year ago, while in an old building, apartment prices fluctuate between 1,255 euros and 1,517 euros per m². At the beginning of 2021, apartments in Kragujevac were sold for 1,011 euros in new buildings and 772 euros in old buildings on average, which is 5% less than current prices,” says the State Geodetic Institute (RGZ).

The biggest price difference was noticed in real estate in Niš. In just one year, a 50 m² apartment in an old building costs nearly 10,000 euros more. Instead of 831 euros last year, a square meter of living space in this southern Serbian city now costs an average of 1,020 euros, an increase of up to 23%.

Prices for older apartments in Novi Sad increased by 250 euros per square meter, in Belgrade by 220 and in Niš by 190 euros. The lowest price increase is in Kragujevac, 30 euros per square meter. According to statistics, the most expensive properties are located in Belgrade.

For Nebojša Nešovanović, real estate analyst, it is not uncommon for weaker real estate markets, such as Niš, to experience greater price fluctuations. On the other hand, the continuous increase in prices for apartments in Serbia is explained by high demand and low supply.

He believes that the higher prices are mainly the result of wealthy people investing in real estate for fear of inflation. “Recently, there has been an increase in the number of people who have made large sums of money and have decided to invest in real estate for fear of inflation. They are the ones responsible for the rise in prices again, the supply is still limited and inert, and mass construction could change that,” Nešovanović added.

(Mondo, 05.05.2022)


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