At the Balkans Property Forum 2024 held in Belgrade, experts highlighted the significant potential for real estate investment in the Balkan region, which could quickly compensate for the slowdown in investments over the past few years due to the crisis.
The forum, which gathered professionals from the construction and real estate financing sectors, emphasized that large investors who had pulled back during the crisis are now preparing to return. Experts believe they will soon make up for the investments missed in the past two years, as the overall market situation has improved. Gabriela Reyes Vidrio, Head of the Real Estate Project Financing Sector at NLB Komercijalna Banka, noted that financing conditions have also become easier, with investors now having more options from banks.
Optimism for the Balkan market was high, with Serbia being viewed as a strong player in the region. The most promising sectors for investment in the coming years were identified as hotels, logistics facilities, and residential construction.
Hotels were highlighted as a key investment sector, driven by a shortage of quality hotel spaces in Belgrade and other larger cities. The upcoming EXPO event is expected to increase demand for such spaces. Residential construction, long seen as a “safe harbor” for investors, is expected to continue its growth, though questions remain about whether price increases are sustainable, according to Maja Šahbaz Marojević from EY.
The logistics sector is also expected to grow rapidly, driven by the development of road infrastructure. In addition, there was mention of a “hidden” real estate opportunity in the growing demand for data centers. As digitization accelerates and data usage increases, this sector presents significant potential for investment.
However, the region still faces challenges, particularly with large investors remaining cautious. Mario Kijanović of SOG Company pointed out that the region’s growth depends on whether investors choose to focus on the more developed Central and Eastern European markets or seek higher yields in the Balkan markets, where costs are lower. He also warned about the bureaucratic challenges that can foster corruption.
Automotive industry investments also play a key role in the region’s development. Investors are awaiting stabilization in the European automotive sector, with German investments in Serbia falling by 50%—half of which were in this industry. Petar Kolognat, Director of Business Development at CTP, noted that industrial parks are being developed in cities like Kragujevac, Jagodina, and Niš, aiming to attract investment to smaller towns. Serbia’s strategic location, access to the EU market, and availability of labor make it an attractive destination for foreign investors, particularly in logistics and production sectors.
The conference, organized by Property Forum in collaboration with the Royal Institute of Chartered Surveyors (RICS), brought together a wide range of investors, developers, and experts from the Southeast European real estate and sustainable construction industries.
