The price of apartments is continuing to climb, with construction investors justifying the increase by citing rising costs of materials, labor, and energy. Milić Đoković, a real estate expert from the Serbian Chamber of Commerce, spoke on RTS, advising potential buyers not to wait too long to purchase an apartment. He pointed out that while the price per square meter may drop, the cost of loans is likely to increase, and vice versa. Đoković also stressed that when choosing an apartment, buyers should focus on factors like the walls and floors, as well as proximity to essential amenities like shops, schools, and transportation, rather than just the apartment’s equipment.
According to Đoković, a slight slowdown in the real estate market is common during December and January. However, he noted that the real development will be seen over the next 18 months, particularly with how many building permits will be issued and how many buildings will be constructed. “If there haven’t been enough building permit applications for several months, this means fewer properties will be available on the market. When supply decreases, prices go up,” he explained.
New vs. old construction
Đoković further explained that the price of a square meter cannot drop drastically if the prices of materials, labor, and infrastructure continue to rise. “If real estate prices fall, the country will enter a recession. Construction is the pillar of society,” he said.
He noted that younger buyers typically prefer new construction because they lack the time and expertise to find reliable craftsmen, who are already hard to come by. Older buyers, on the other hand, tend to lean toward older properties.
One key trend is the growing demand for parking spaces. Many buyers prioritize finding a good parking spot, with location coming in second. According to Đoković, garage prices are also on the rise and will continue to climb, with prices ranging from €30,000 to €50,000 in cities. He pointed out that garages sell quickly, offering renters the convenience of paying up to €150 per month with no additional costs.
Garage prices soaring
In areas like Vračar, where the price per square meter of an apartment is €4,000, a garage can cost around €3,000 per square meter, which Đoković considers remarkable. He predicts that by 2026, the price per square meter for apartments and garages will equalize.
He advised that buyers should not focus solely on the furnishings of an apartment, but should pay close attention to the quality of construction, such as the walls, floors, and the view. Additionally, the surrounding area’s amenities, including markets, schools, health centers, and public transportation, should be considered.
When to buy: Cheap square footage vs. expensive loans
Đoković also addressed the common question of when is the right time to buy. He explained that if square footage is cheap, loans will likely be expensive, and vice versa. However, he emphasized that the best time to buy is when buyers have the necessary funds, as waiting too long will not lead to favorable outcomes. He warned that if real estate prices fall, salaries are likely to drop as well.
According to Đoković, the highest apartment prices are in New Belgrade, Čukarica, Banovo Brdo, and Zvezdara, with prices in peripheral settlements like Mirijevo, Ledine, and Žarkovo also on the rise. In addition to Belgrade, Novi Sad, Niš, Kragujevac, Subotica, Zrenjanin, and Loznica are seeing price hikes.
Notably, last year, the most expensive square meter was sold for €11,000 in Savski Venac.
