The demand for real estate in Serbia remains high despite elevated prices, particularly in major cities like Belgrade, Novi Sad, Niš and Kragujevac, with increasing interest in smaller towns. However, buyers face challenges in finding affordable and ideal apartment sizes. The average square meter prices have stagnated, but this could change soon.
In Belgrade, there are three main types of buyers:
- Credit buyers with high salaries who can afford larger loans due to the high cost of real estate.
- “Cash buyers” – those who acquire apartments through compensation, often for work done rather than monetary exchange.
- Actual cash buyers who purchased during periods of high inflation as a form of value preservation.
The most sought-after apartment size in Belgrade is typically 55 to 60 square meters, with two bedrooms, priced between 1,650 to 2,000 euros per square meter. These apartments are now seen as suitable for young couples or small families, balancing functionality and affordability.
The introduction of youth housing loans may temporarily drive up demand and property prices, but this effect is expected to be short-term, with the program focusing on a smaller number of young buyers (around 5,000-5,500 applicants). However, there are concerns regarding how these loans are processed, especially the accuracy of property valuations, as a limited number of appraisers handle the demand.
In terms of property pricing, apartments of around 50 square meters are seen as ideal for young buyers due to their practicality and ease of resale. Larger apartments are harder to sell and maintain, which is why smaller units are considered more marketable.
Overall, the real estate market in Serbia is facing challenges, but demand remains resilient, with specific trends in buyer preferences and government support potentially impacting the market’s future dynamics.
