The current average price per square meter for an apartment in Belgrade, as listed on the 4zida portal, is €2,640. Financial experts in the country believe that while borrowing conditions may improve, apartment prices are unlikely to see a significant decline.
For many citizens, who rely on loans to address housing needs, the movement of Euribor is closely monitored with hopes for a decrease in interest rates in the near future.
Vladimir Vasić, a financial consultant and former secretary of the Association of Banks of Serbia, anticipates a further reduction in reference interest rates in the European Union to stimulate demand among citizens.
“On the domestic market, we do not expect major changes until the end of the year, except for a slight decrease in interest rates. Financial markets react slowly, and inflationary pressures, especially in the Balkans, are still present,” Vasić noted.
He is optimistic that interest rates on home loans could fall below five percent next year.
“The location of your purchase matters—whether it’s in a city or a specific part of a city. Some areas may see a slight decrease in prices, particularly in the outskirts of cities, but not in Belgrade,” added Vasić.
He also pointed out that the proportion of housing loans in apartment sales has decreased from 31.5 percent in 2021 to 18.2 percent at the start of 2024. Nikola Stakić, a professor at Singidunum University, stated that the real estate market in Serbia is largely investment-driven, which diminishes the impact of interest rates on property prices.
“When cash transactions make up four-fifths of the market volume, interest rates have less influence compared to if loan usage were higher. As long as there is demand for various properties, both potential and existing investors will continue to invest, keeping prices high,” Stakić explained.
He is hopeful that the anticipated period of interest rate reduction will proceed smoothly, as long as there are no significant geopolitical disruptions.
“We hope that there won’t be major geopolitical changes that could disrupt this trend,” concluded Stakić.
