About the country
Serbia is a country with a population of 9 million people, located in the central part of the Balkan Peninsula in southeastern Europe. Unlike neighboring Montenegro, Bulgaria and Croatia, it has no access to the sea. Two thirds of the territory is occupied by mountains. Kopaonik, Berezovitsa are modern ski resorts that attract tourists. Balneological centers are also popular in the country: Soko-Banya, Bujanovacka-Banya, Vrnjacka-Banya, Banya-Koviliaca, Nishka-Banya (many Serbian words, including toponyms, are intuitive and pleasing to the ear of a Russian speaker).
The main territory of the country has a continental and temperate continental climate. It has hot summers (the average temperature in July is plus 25–26 °C), warm autumn and mild winter (the average temperature in January is minus 1–3 °C).
Serbia is actively developing its economy and attracting foreign investment.Serbia's GDP growth in 2021 was 7.5% and became the largest in Europe. One of the important problems of the state is the low birth rate, for many years the population has been declining in the country. Another disadvantage is the high unemployment rate.
The local currency is dinars, but euros are also in use.
Historical background
The ancient Slavs settled this area back in the 6th century AD. After liberation from Byzantine rule in the 12th century, the Serbian state actively developed and reached its heyday in the 14th century. However, the period of recovery ended after the defeat in the battle with the Turks in 1389. Serbian lands were under the control and then under the full authority of the Ottoman Empire for more than 350 years. The country gained its final independence only in 1878. As a result of the Balkan Wars of 1912 and 1913, the territories of Kosovo and part of Macedonia became part of Serbia. After the First World War, the Kingdom of Yugoslavia was formed, which includes Serbs, Croats and Slovenes.During the Second World War, the country was occupied by German troops, and in 1945 it was liberated by the Red Army and the People's Liberation Army of Yugoslavia. Since that time, the Soviet period of the history of the state begins. In the 1990s and early noughties, separatist sentiments provoked a series of civil wars and led to the disintegration of Yugoslavia into 6 independent countries (Slovenia, Croatia, Bosnia and Herzegovina, Macedonia, Serbia and Montenegro) and one partially recognized state (Kosovo).
Russia and Serbia
There are historically close ties between Russia and Serbia. Russian Russians are reflected in the popular saying "With Russians there are 300 million of us, and without Russians there are half a truck." There are more than 30 monuments dedicated to Russians in the country, including Emperor Nicholas II, nurse Daria Korobkina, who died heroically here during World War I, and numerous memorials to Red Army soldiers who fought for the liberation of Yugoslavia.
One of the reasons for the sympathy for Russia on the part of modern Serbia is the position of the Russian Federation towards Kosovo, as well as the unequivocal condemnation of NATO's actions in 1999. From March to June, Belgrade and other territories of Serbia and Kosovo were bombed by the armed forces of the alliance. The operation was explained for humanitarian purposes, but caused a wave of criticism in different countries.
In March 2022, Serbia condemned Russia's military actions against Ukraine, but did not join the sanctions imposed on Russia by most European countries.
Conditions for foreigners
Russians can visit Serbia without a visa. The period of permitted stay is 30 days, however, upon re-entry, the period is reset to zero. Some people live in the country on semi-legal grounds, making a monthly so-called visa-run trip to a neighboring state in order to have a basis for opening a new visa "white cardboard". The Romanian border closest to Belgrade is 108 km away, and the visa-free border for Russians in Bosnia and Herzegovina is 112 km away.It should be emphasized that this method involves significant risks.
If you plan to stay in Serbia for a long time, it is preferable not to "get a visa", but to apply for a residence permit. The basis may be a work permit or the purchase of real estate in the country. The cost of the object does not matter, the only condition is that you need to live in an apartment (or house) purchased for the purpose of legalizing your stay (local authorities are monitoring this).
Finding a job in Serbia is not so easy. Companies, in accordance with the law, prefer local specialists, since they have not been able to overcome unemployment in the country for a long time. An exception may be rare and in-demand professionals, for example, in the IT field. The average monthly salary in the republic is about 600 euros.
Schoolchildren in Serbia have been studying for 12 years. There are international schools in the cities (Russian only in Belgrade at the embassy). Most of the visitors send their children to Serbian educational institutions. As a rule, a child needs 1.5-2 months of lessons with a tutor during the summer holidays in order to gain basic knowledge of the language and continue their education with local children.
It should be noted that adults need more time to learn Serbian. Despite the fact that our languages are similar, you should not hope that you will be able to understand the locals and speak for yourself without making an effort.
Russia maintains direct flights with Serbia. Air Serbia makes several flights per day. The cost of a one-way ticket today is about 25,000 rubles. It will cost a little cheaper to fly if you use other airlines and fly with a connection.
Real estate market
Serbia's secondary market is diverse. Modernized apartments are offered in old houses in the historical center, apartments in typical high-rise buildings of the late Yugoslav period, as well as in relatively new buildings built after the war of the late 90s. As a result of the bombing, many buildings were lost or partially destroyed. As a rule, real estate from the owner is cheaper than objects in new houses.
Both standard houses and residential complexes are being built on the primary market according to individual projects with concierge service, gyms, swimming pools, shopping centers.
Real estate prices in Serbia have been rising since 2013.The number and volume of mortgage loans issued is increasing.There was a slight decline during the pandemic, but it didn't last long. In the 12 months from spring 2021 to spring 2022, house prices increased by 23%. Apartments in the central part, in Vojvodina, Shumadia, as well as in the south of the country have risen in price. The sharpest jump was recorded in the Niche. In this city, a ready-made apartment with an area of 50 square meters rose in price by almost 10,000 euros over the year.
The activity of Serbs in the apartment market is associated with an increase in average wages in euros, a decrease in mortgage rates, as well as the stability of the national currency relative to the European one.
The interest from foreigners is added to the very high local demand. So, commenting on the influx of Russian buyers into the Serbian real estate market in March–April 2022, the local newspaper ironically writes that «Belgrade is becoming a new Londongrad for Russians», that is, a favorite place for life, business and investment.
The pace of new housing construction in Serbia is increasing. In March of this year, 35% more construction permits were issued than in March 2021. However, despite this, the supply does not have time to meet the growing demand. As local developers say, "I just stuck a shovel in the ground" as the apartments have already been sold out."
The most popular cities for foreign investments are Belgrade, Novi Sad, and Nis.
There is also a growing interest in small towns and villages of the country:Subbotica, Valevo, Vrshac, Smederevo,Loznica.Small and cozy towns are popular among the so-called digital nomads, specialists working remotely for foreign companies. Since the issue of employment for this category of buyers has been resolved, they absolutely do not need to get attached to the capital and can live in a more peaceful place closer to nature. Moreover, apartments in such locations are much cheaper.
Real estate rentals in Serbia are more than affordable compared to many European countries. In a small town or in a remote area of Belgrade, you can rent a one-bedroom apartment for 180–200 euros. In the historical part of the capital, of course, housing is more expensive from 400 to 500 euros. There are options for the discerning client for 1,500-1,700 euros.
Belgrade
About 1.4 million people live in the Serbian capital. Today, this multifaceted and long-suffering city, which has survived at least 40 devastating wars in its history, captivates tourists with its simplicity andcordiality. The numerous cafes where Belgradans like to relax, socialize, drink coffee (Serbs are famous coffee lovers), and sometimes smoke a cigarette are especially hospitable (to the surprise of foreigners, smoking in restaurants in Serbia is still allowed by default).
The average cost per square meter in May 2022 is 1,680 euros in the secondary market and 2,165 euros in new buildings. In the center of the capital, apartments are more expensive than 3,000 euros per square meter and above. Prices on the secondary market in old housing stock are usually 20-30% lower.
A two-bedroom apartment with an area of 60-80 square meters in a good area, but not in the center, can be purchased for approximately 150,000 euros.
Belgrade is conditionally divided into 17 administrative districts.
The most prestigious area is considered to be the Old Town. As in the centers of other megacities, there are many attractions, shops, restaurants. Strings of tourists walk along the streets.The obvious disadvantage of living here is parking problems. According to local realtors, wealthy Belgradians prefer to settle in other areas. The average cost of apartments in the Old Town: about 2868 euros per sq.m.
The Upper Dorchol belongs to the village of Stary Grad.There are many beautiful historical buildings in the area, and numerous trendy bars and restaurants have opened their doors along the streets. The cost of real estate in these "Serbian Patriki" is almost the same as in the Old Town (2,525 euros per square meter), but there are practically no shops of the average price category.
Nizhny Dorchol is an area located on the banks of the Danube, built up with high-rise buildings in the late Yugoslav period. Many buildings now have a very deplorable appearance.Apartments here are cheaper than in the nearby Upper Dorchol. The average cost per square meter: 2286euros. At the same time, the advantage of the location is the proximity to the embankments, as well as the fact that there are parking spaces near the houses.
Opshtina Vrachar is inferior in prestige and cost per square meter only to the Old City and the Upper Dorchol. There are also many historical buildings here, which are interspersed with Soviet-era buildings. The main attraction is the magnificent Cathedral of St. Sava, the largest functioning Orthodox church in the world.The area is popular due to its convenient location and good transport links. However, according to some experts, the Doctor is overrated.
If old Belgrade is compact, with fairly dense buildings, then there are many free spaces and extremely wide avenues on the territory of New Belgrade. Most of the capital's new buildings are located here. New Belgrade has developed infrastructure for families with children, there are no problems with parking. Many locals prefer to move here from other parts of the city. The average price of apartments in New Belgrade: 2053 euros per sq.m.
Not far from the popular beach in Belgrade on Lake Ada Tsiganlija is the Banovo Brdo area.Many Belgradians like exactly such places, far from the center, but closer to nature, next to a forest or lake. The cost per square meter of an apartment in a new building starts from 2000 2500 euros.
Novi Sad
Novi Sad, the second largest city in Serbia, is located in the north of the country on the banks of the Danube. Unlike Belgrade, which stands on the hills, Novi Sad is located on the plain. The population of the city is 400 thousand people.
Orthodox Serbs founded Novi Sad in 1694, and already in the 18th and 19th centuries it became an important commercial, industrial, and cultural center, for which it received the second name "Serbian Athens". The city is still considered the cultural capital today due to the wide variety of museums, galleries and monuments.
In the 20s of the 20th century, Novi Sad became one of the centers of Russian emigration.Compact, neat and pretty, Novi Sad is considered by many to be the best place in Serbia. Everything you need is at hand here, and there is no hustle and bustle of the capital. Although, by the way, Belgrade is a much calmer city with a measured pace of life compared to Moscow and other major centers of Russia and the world.
An apartment on the primary market in Novi Sad costs an average of 1505 euros per sq. m (16% more than a year ago). In the secondary market, offers range from 1,255 euros to 1,517 euros per sq.m.
Niche
The third largest city in Serbia, Nis, with a population of about 300 thousand people, is located in a lowland on both banks of the Nisava River. The place is interesting for historical sights. The ruins of a Roman-era palace, a Byzantine basilica, a baptistery, Turkish mosques, and ancient Orthodox churches have been preserved.
Today, Nis is a modern, actively developing city with its own universities, parks for family walks, cozy restaurants and cafes, and even with its own Nishvill jazz festival.An apartment in a Niche can be purchased at a price of 1000 euros per sq.m.
Loznica
In Western Serbia, the town of Loznica is located at the foot of Mount Gucevo;(the name means a small vine of grapes). Due to the ridges that protect the settlement from cold winds, the climate here is quite mild.
The population of the city is only 30 thousand people. It has the necessary infrastructure for a comfortable stay for families with children, but, as local realtors say, there is not much entertainment for young people in Loznica.
The average cost per square meter in Loznica is 1000 euros.
Taxes and additional expenses
When purchasing a home on the secondary market, you must pay a 2.5% tax on the transfer of ownership. Buyers of apartments in new buildings do not pay this tax.
In the primary market, the price is usually set with VAT, however, when studying the advertising offers of developers, it is necessary to carefully check whether this tax is included in the cost of the object.
The amount of the annual property tax depends on the market value of the property and its location. It ranges from 0.2% to 1% (the maximum rate is applied in the central districts of Belgrade, the minimum is in rural areas far from cities).
As a rule, both foreigners and local buyers turn to a real estate company. The agency's commission is 2% of the transaction amount. The lawyer's services are estimated at 300,500 euros per transaction. The lawyer's competence includes checking the legal purity of the object. Notary services will cost up to 500 euros (depending on the value of the property). The translator will need to pay a fee of approximately 50 euros per hour of work.
Calculations
Serbs actively use loans to purchase housing, but such a tool is not provided for foreigners who have just arrived in the country. Even with a residence permit, a citizen of another country will be able to take out a mortgage only after working in Serbia for at least 3 years on the basis of a permanent employment contract.
Due to the sanctions imposed on Russian banks and counter-sanctions restricting currency transfers abroad, it has become more difficult to pay off. The situation should be significantly eased by increasing the allowed limit on currency transfers from a Russian citizen's account in a Russian bank to his account in a foreign bank to $50,000 (for two months from March 2022, this limit was $ 10,000). At the same time, each family member can transfer the allowed amount, and thus the funds necessary for the purchase of an apartment will be accumulated in an account with one of the Serbian banks (Russians often choose API Bank, the former daughter of Sberbank). Note that you can transfer currency from a Russian bank account that is not under sanctions and is not disconnected from SWIFT.
Realtors of local agencies note that even if all conditions are met, transfers are often delayed.
After transferring the money to your account in a Serbian bank, you can proceed to the transaction. The parties sign a purchase and sale agreement, after which the required amount is transferred to the seller's account.
With this payment scheme, you will have to pay a commission twice for transferring from one bank to another (usually 1%). However, sellers often agree to open an account with the same bank as the buyer's, which reduces the cost of transferring up to 5,000 dinars per transaction (approximately 42 euros).We emphasize that, by agreement of the parties, settlements can be carried out in both dinars and euros.
Buying an apartment from a developer is technically much easier. In this case, funds can be transferred on the basis of a purchase and sale agreement directly from an account in a Russian (non-bank) bank to the company's account. Currency transfers to legal entities from Russian accounts are not limited to a certain amount.
Serbia in focus
Serbia is a pleasant country with friendly people who are close to Russians, Ukrainians, and Belarusians spiritually and historically. This is a good option for relocation, as there are quite mild conditions for obtaining a residence permit, low cost of renting housing (even forcompared with Armenia, not to mention Turkey and other European countries), the low cost of living.
You can still buy an apartment at a very affordable price. If you have a relatively small amount, it is worth considering small towns and villages, as well as Novi Sad and Nis. If the budget allows, and it is important to live in the capital, then you can choose a suitable option in Belgrade.
According to market experts, it is preferable for a foreigner to purchase an apartment from a developer, having found, for example, an option in a newly built house. This avoids the transfer tax and opens up more possibilities for calculations. Apartments in Serbia, as in most other countries, are rented with finishing, so there will be no uncontrolled expenditure of time and money.
In any case, both when buying in a new building and when choosing from the owner, it is advisable to contact an agency that works in this market and has a good reputation. Another tip is not to skimp on the services of lawyers.
It is also necessary to note the investment potential of the Serbian real estate market. The cost of housing here is steadily increasing, and demand among both locals and foreigners continues to grow. Experts advise paying attention to high-quality new buildings in good locations. Small towns are also interesting for investments. The cost of apartments in Loznica, for example, has increased 2.5 times since 2014.
Thank you for your help in preparing the article by real estate market experts in Serbia:
Irina Mike, Project Manager at Nova Zgrada
Olga Dedkova, Director of Atlas Pro Agency
Sources:
Statistical Institute of the Republic of Serbia
Photo: depositphotoes.com
.jpg)