Serbia’s real estate market: Trends, young buyers and the impact of lower interest rates

Real estate remains a strong investment in Serbia, with younger buyers becoming increasingly active in the market. Experts predict this trend will continue into 2025, with a rise in credit buyers due to the National Bank of Serbia’s planned reduction in interest rates.

Key factors driving demand in the market include:

• Home purchases for living purposes.
• Investment in real estate.
• Buyers from the diaspora, especially after the pandemic.
• Migration from other parts of Serbia to Belgrade and Novi Sad.
• Geopolitical migration, particularly from Russia, Ukraine and Israel.

Dead capital and increased liquidity

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Professor Dragan Lončar highlighted that the Belgrade real estate market has grown faster than the population, with an estimated 10,000 unoccupied apartments representing billions of euros in “dead capital.” Despite this, demand remains strong, especially from married couples and those seeking safe investment options. The diaspora, with its purchasing power, continues to drive demand for high-quality properties in prime locations.

Growth in credit buyers and diaspora activity

The number of credit buyers has increased, with more people from the diaspora buying properties, particularly in Belgrade. In 2025, credit purchases are expected to rise further as interest rates decrease, which will further stimulate market activity.

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Concerns: Rising construction costs and workforce shortages

Investors face challenges such as rising construction material costs and labor shortages. Despite these, demand for real estate remains strong, especially from buyers in Russia and Canada.

Price trends

Experts predict that while property prices are unlikely to fall, they may rise due to inflation and increasing construction costs. However, the rise in credit buyers may balance out price increases.

Future outlook

The real estate market in Serbia remains dynamic, with competition benefiting both investors and buyers. The expected rise in credit buyers, coupled with ongoing demand, suggests a stable market outlook for the coming years.