The real estate market in Serbia has shown signs of stabilization, but a price decline is not expected in the near future. Demand continues to outpace supply, particularly in areas like Šabac and Mačva, where real estate has become an attractive investment, especially during periods of inflation. The rising rental prices also indicate the market’s stability.
Several factors influence real estate prices, such as the overall economic environment, shifts in supply and demand, political events, and global trends. Despite the hopes of many citizens for lower property prices, the desired drop has not materialized. After two years of consistent price growth, the market has finally reached a point of stabilization, with the steep upward trend in prices halting.
Jelica Melentić, the owner of Melentić Real Estate in Šabac, explains that the main driver behind the price increase is the high demand paired with limited supply. She highlights that the number of apartments being sold exceeds the number of newly built ones. Additionally, the global rise in construction material, labor, energy, and loan costs has further pushed prices up.
For many Serbian residents with some financial capital, real estate remains a secure investment choice, particularly during inflationary periods. Purchasing property is seen as a way to protect savings from inflation’s eroding effects. Jelica further notes that investing in real estate provides stable, passive income—an investment option that is far more familiar to Serbian citizens than stocks or bonds, which are more commonly favored in developed nations. Until the perception of investing excess funds in alternatives to real estate gains traction, demand for property as an investment will likely remain high.
Currently, the cost of construction materials is stable, which has helped prevent a rise in the price per square meter. However, the wages of builders have increased, and while this has not yet affected property prices, further wage increases could eventually lead to higher construction costs.
The demand for real estate in Šabac and its surrounding areas continues to exceed supply, with the opening of a new highway contributing to the region’s appeal. The highway has made areas in Mačva more accessible to Belgrade residents, driving up interest in holiday homes. Villages like Mačvanski Prićinović, Uzveć, and Ševarica are now viewed as prime investment locations. This infrastructural development has revitalized the region and led to a noticeable increase in real estate prices.
However, a major issue remains the shortage of newly built apartments in Šabac itself. Smaller apartments, particularly those under 50 square meters, are in especially high demand, with prices around 1,600 euros per square meter plus VAT, showing a slight upward trend. Apartments in older buildings range from 1,350 to 1,550 euros per square meter. Additionally, the influx of Chinese workers to Šabac, employed at local factories, has significantly raised rent prices in 2024, with rental prices now on par with those in Novi Sad.
The rental market is experiencing similar trends, with demand still far outstripping supply. Predictions suggest that prices are unlikely to fall in the foreseeable future, as no factors currently indicate a shift. While the market has stabilized, it is uncertain how long this balance will last.
For those navigating the local real estate market, Melentić Real Estate offers comprehensive support, providing expertise and guidance through the buying, selling, or renting process. With extensive knowledge of the local market, the agency ensures informed decision-making, backed by thorough information that is difficult to obtain without professional help.
In addition to its real estate services, Melentić Real Estate also provides full marketing support for sellers, including professional photography, compelling property listings, and promotion across the most effective platforms. This strategy helps attract more potential buyers and facilitates faster sales or rentals.
The agency works closely with a team of lawyers to ensure that all real estate transactions are legally secure, offering clients peace of mind throughout the process.
