It seems the real estate market in Serbia is facing a mix of challenges at the start of 2025. Prices have been described as unrealistic and disconnected from the average incomes, which has led to slower sales and a lack of demand for larger apartments. Kaća Lazarevic, a real estate expert, paints a picture of a market where the supply is limited, and the middle-class buyers who once dominated the market are becoming increasingly rare. Many potential buyers are turning to loans or relying on their parents’ savings to afford apartments priced between 150,000 and 200,000 euros.
Interestingly, the trend is shifting as investors recognize the demand for smaller apartments, particularly those between 30 to 50 square meters. However, these smaller units have been scarce in recent years due to the larger sizes typically being built. Lazarevic mentions that while there’s a need for these smaller apartments, they’re difficult to find in new developments, as most new constructions tend to focus on larger units. The solution, she believes, lies in adapting the construction focus to meet this demand.
Furthermore, Lazarevic discusses the impact of the government’s subsidy program for young people seeking to buy real estate. While it’s a step in the right direction, she believes the availability of affordable apartments remains limited, especially in the central areas of Belgrade.
She also highlights the ongoing challenges in the market, such as slow property sales and unresolved issues related to property legalization and cadastre problems. While investors might be converting unsold large apartments into smaller units for rental, there’s still an underlying sense that the market is not as dynamic as it once was.
It sounds like the real estate market in Serbia is at a crossroads, with the hope that new policies and a shift in building practices might inject some life into a stagnant market. How do you think the government’s approach to subsidized loans and property legalization might help shift these dynamics?
