Overview of Real Estate Markets in Serbia, Bosnia and Herzegovina and Montenegro – How much is a a square meter in new buildings and where to invest?

According to the Report of the Republic Geodetic Authority on the real estate market in Serbia for the first half-year period of 2022, the value of the real estate market in the Republic of Serbia in the first half of 2022 was EUR 3.6 billion which represents record half-year worth.

The data show a slight increase in property turnover compared to last year and record amount of money on the real estate market – the volume of money has increased by 25%.

The number of sales and purchase contracts in the first half of 2022 surpassed the first half- year of 2021 by 4% or 68,274 sales in total.

In Serbia, there were 25,775 apartments sold, 15,720 sales of construction land, 12,130 residential buildings sold and 11.779 sales of agricultural land.

For the first half-year of 2022 the number of sales and purchase contracts of garage spaces increased by 22%, the sales of office buildings increased by 9%, apartments by 8%, agricultural land by 6% and residential properties (houses, summer houses and collective housing ) by 5% compared to the same period last year.

Looking at regional data, the largest number of property sales in the first half of 2022 was realized in the province of Vojvodina, followed by the City of Belgrade and regions of Sumadija and Western Serbia whereas Southern and Eastern Serbia had the least properties sold. However, as before,
the most expensive property was sold in Belgrade so the largest amount of money was traded in the City of Belgrade.

Apartments

When it comes the turnover of apartments, the sales and purchase contracts for new apartments made up 42% out of total apartment sales in the first half of 2022 which is 1% more than in the same period of the previous year.

In the first half of 2022 there were 25,775 apartment sold nation-wide, which is an 8% increase compared to last year.

The average floor area of apartments in old buildings is 54 square meters and the average floor area of new apartments is 59 sqm.

Based on structure of old apartments in the market, two/two-and-a-half room apartments made up 38%, one/one-and-a-half room apartments made up 28%, three/three-and-a-half room made up 13% and studio apartments made up 6%, four/four-and-a-half room apartments made up 2%, and apartments with one/two rooms, five bedrooms and other made up 2% whereas there is not data on number of rooms for 11% of properties.

Speaking of new apartments on the market, based on structure wo/two-and-a-half room apartments made up 30%, three/three-and-a-half room made up 15%, one/one-and-a-half room apartments made up 12% , four/four-and-a-half room apartments made up 5% and studio apartments made up 3%, and apartments with one/two rooms, five bedrooms and other made up 1% whereas there is not data on number of rooms for 34% of properties.

The average price of old apartments for the whole Serbia for the first half-year of 2022 was EUR 1,260 per square meter, an increase of 19% compared to same period in 2021.

The average price of new apartments was EUR 1,617 per sqm, which is 11% more than in the same period last year.

The highest priced new apartments are located at Belgrade Waterfront and they go from EUR 2,615 to EUR 9,5454 per sqm.

In the City of Belgrade, the locations of following residential complexes stand out: Novi Dorcol, Zepterra, K district, Petica, Kennedy Residence, Park Vila Residence and New Minel.

The most expensive old apartments are located in Belgrade municipalities of Stari Grad, Vracar, Savski Venac and New Belgrade.

Commercial property

Commercial property transactions in the first half year of 2022 rose by 9% nation-wide compared to the same period in the previous year. There were 1,765 signed sales and purchase agreements of office space registered.

Business premises sold include shops, offices, business properties of unspecified purpose, business apartments and storage and warehouse spaces

The most office space transactions happened in the area of following municipalities: Novi Sad - 241, Raska - 146, New Belgrade - 142, Cajetina - 90, Medijana (City of Nis) - 64, Vračar - 52, Zvezdara - 52, Stari Grad - 49, Palilula - 45, and Subotica – 41.

The prices of commercial property ranged from EUR 50 per sqm to EUR 12,240 per sqm.

The floor area of property on sale up to 30 sqm comprised 33% of data, properties from 30sqm to 60sqm – 60% of total data, properties from 60 sqm to 150 sqm – 22% and spaces over 150 sqm made 15% of data.

Highest prices on the real estate market

The highest price of a square meter in an apartment in Serbia in the first half of 2022 was traded in the Belgrade Waterfront, in Savski Venac municipality and it cost EUR 9,545 per square meter. It has a surface area of 97 m2 and is a newly built apartment.

As for apartments in old buildings, the highest price per square meter was EUR 4,902 set aside for an apartment on Belgrade municipality of Stari Grad. It has a surface area of 66 m2.

The apartment for which the most money was set aside in the first half of 2022 was a newly-built apartment, and the price was EUR 1,530,000. It has an area of 349 m2 and it is located in the municipality of Stari Grad.

The most expensive house was sold in Savski Venac municipality for EUR 2,900,000.

The most expensive square meter of commercial property was sold in Stari Grad municipality for EUR 12,240 and it has the area of 29 m2. The highest contract price of office space, EUR 10,200,000, was reached in the municipality of Palilula.

Methods of payment

Based on the data collected from sales and purchase contracts, 12% of all real estate in the first half-year of 2022 were paid from credit funds, which is 4% less compared to the first half of 2021. Credits are mostly used for apartment purchases. In the first half of 2022, 28% of apartments in Republic of Serbia were paid for through credit funds, which is 8% less than in the first half-year of 2021.

The third quarter in the real estate market in Serbia

When it comes to the third quarter year, the total volume of money on the real estate market was EUR 1.7 billion, an increase of 10.6% compared to 2021.

The total number of sales and purchase contracts in the real estate market was 34,503, a decline of 0.9 compared to the third quarter of 2021. Looking at city areas, the most sales and purchase agreements were recorded in the City of Belgrade – 8,013 contracts.

In the third quarter of 2022, sales of apartments had the biggest share in the total amount of money traded in real estate market – EUR 935.2 million out of which EUR 579.6 million was set aside for aparrtments in Belgrade.

The share of sold aparrtments in the amount of money in the market in the third quarter of 2022 was 57%, which is 1% more than in the same period in 2021.

In the third quarter of 2022, 10% of purchased properties were paid for with credit funds, which is 4% less compared to the same period in 2021. Credits are mostly used for purchase of aparrtments – 25% a 8% less compared to the third quarter last year.

The highest amount of money – EUR 1,280,350 - in the third quarter of 2022 was put aside for new apartment in Vracar and has a surface area of 301 sqm. The most expensive square meter in apartments in Serbia for the third quarter of 2022 has been sold in Belgrade Waterfront, in Savski Venac municipality. It`s a new apartment that cost EUR 10,400 per sqm and it has the surface area of 97 sqm.

The most expensive square meter of office space was traded in Belgrade municipality Savski Venac for EUR 10,110, it has the area of 179 sqm and it is also the highest constract price for office space – EUR 1,810,000.