Serbia. An overview of the real estate market

Serbia has a favorable geographic location, providing economic ties with other European states - it is located on the Balkan Peninsula and borders on Croatia, Hungary, Romania, Bulgaria, Montenegro, Macedonia, Bosnia and Herzegovina. The climate in the country is moderately continental; winter here lasts for about two months. The temperature in summer reaches + 30C, and in winter it drops to -5-10C. Serbia is home to about 7.5 million people, in Belgrade, the capital of the country - about 1.1 million people. In such large Serbian cities as Nis, Novi Sad, Subotica, the number of inhabitants varies from 100,000 to 230,000. Serbs, most of whom are Orthodox Christians, are very welcoming to Russians, and the Serbian language is quite understandable to the inhabitants of Russia. Serbia has no access to the sea, unlike Montenegro, which is popular among Russians, but the country has balneological and ski resorts, which are now the most promising for investment. A house for permanent residence in such resorts can be bought for 50,000-70,000 euros. Foreigners can purchase real estate in Serbia without restrictions, for this it is enough to present a foreign passport. For Russians, visa-free entry to Serbia is open for up to 30 days of stay in the country. Serbia is also attractive to Russians because when buying real estate it becomes possible to obtain a residence permit not only for the owner, but also for his family members. In this case, the value of the property does not matter. Transport accessibility It is possible to fly from Moscow to Belgrade by plane in three hours - flights on this route are daily operated by Aeroflot and JAT Airways. You can also get from Moscow to Belgrade by train, but such a trip will take more than two days, and the cost will be comparable to a flight by plane. To get from Moscow to the Serbian capital by car, you will need to cover about 2450 km. Real estate market In Serbia for a long time there were political conflicts and military actions, which, of course, negatively affected the real estate market. The country also struggled with economic problems, hyperinflation. Serbia's housing market fell the most after the 1999 hostilities. After that, the country received economic assistance, and since about 2001, the real estate market began to show weak signs of growth. From 2004 to 2006 about 17,000 residential buildings were built in the country every year, more than 30% of which were in Belgrade. But with the onset of the crisis in 2008, the real estate market slowed down. The volume of new housing construction has decreased, so now the main activity of buyers falls on the secondary real estate market. In the period from 2008 to 2012. properties in the primary and secondary housing markets of Serbia, especially in the northern part, fell by about 35%. Due to the unclear economic situation caused by the debt crisis in Europe, the demand from local and foreign buyers in the housing market has weakened. But prices, in turn, also fell. If before 2008 banks easily issued loans, now almost all purchases are made without the help of bank financing. The most active investors are observed in Belgrade , the situation on the real estate market here is better compared to other cities in Serbia. Mainly in demand are apartments with one and two bedrooms. The average cost per square meter in the capital is 1400-2000 euros, and elite properties can be purchased for 3000-3500 euros per square meter. m. In other Serbian cities, prices start from 500 euros and go up to 1200 euros per sq. m. m. Since March 2012, Serbia has officially become a candidate for membership in the European Union. Therefore, now in Serbia is expected a steady increase in investment in the country's economy, which will have a positive impact on the real estate market. The government directs its efforts to develop the tourism sector and attract foreign direct investment. According to the newsletter of the Agency for Attraction of Foreign Direct Investment and Export Promotion under the government of the country, Serbia is the absolute leader in terms of attracted foreign direct investment among all Balkan countries. In 2012, the volume of attracted financing amounted to 2.2 billion euros. But there are also risks when buying real estate in Serbia, among which are still low market transparency and the presence of higher administrative barriers than, for example, in neighboring Croatia and Montenegro. However, this market has great potential, as it is only at the initial stage of its development, and the government still has a lot to do in order to ensure stable growth and gain a reputation as a reliable market. Geography of the offer The main part of real estate purchases by investors falls on the northern and central parts of the country. Belgrade has the most active housing market compared to other cities in Serbia. In the center of Belgrade, a two-bedroom apartment can be bought for about 120,000 euros. In the area of New Belgrade, real estate prices are higher than in the center and can go up to 4000 euros per sq. m. The next most popular city after Belgrade is the city of Novi Sad, located in the northern part of Serbia, Vojvodina. Housing here costs an average of 800-1000 euros per sq. m. Subotica, the country's northernmost city and the second largest in Vojvodina, is located closer to the border with Hungary, so almost half of the city's residents speak Hungarian. Real estate prices are even lower here - in the center of Subotica apartments cost 400-800 euros per sq. m, and in the suburbs - 350-600 euros per sq. m. In the ski resort Zlatibor, located in the south-west of Serbia, about 100 km from the border with Montenegro, a house of 150 sq. m. m can be purchased from 70,000 euros. Kopaonik, a popular ski resort and national park in Serbia, is located in the central part of the country. The cost of real estate objects here is comparable to that of Zlatibor. There are many balneological resorts in Serbia, as a rule, the word “Banya” is used in the name of such resorts. In such resorts with mineral springs as Vrnjachka Banya, Sokobania, Banya Selters, Ribarska Banya, Vruitsy Banya, Nishka Banya, Buyanovachka Banya, Matarushka Banya, Bogutovacka Banya, Siyarinska Banya, a house with an area of 110 sq. meters can be bought for 50,000-70,000 euros. Some balneological resorts in Serbia are popular with Western Europeans. Russians are considering buying not only apartments in the city, but also rural real estate - compared to European countries, Serbia has relatively low utility bills. HomesOverseas.ru