The real estate market in Serbia is showing signs of slowing down, with construction activity decreasing and the rate of price growth for square footage slowing. Despite this, Serbia remains a leader in the region for the number of building permits issued, though the market is facing new challenges that are shaping its dynamics.
Recently, the Serbian real estate market has experienced significant changes. Apartment prices have become more volatile, and demand in Belgrade has dropped, leading to a slowdown in the construction sector. For instance, January of last year saw the lowest number of permits issued, with only about 1,500 granted—similar to the number in January this year. The highest number of building permits issued occurred in October 2023, when nearly 4,000 permits were granted, followed closely by April 2024 with just over 2,500 permits.
While Belgrade remains the primary location for apartment sales, there is currently a stagnation in demand within the city. In contrast, sales are rising in the Braničevo region, while construction activity has slowed in Šumadija and Raška.
In Belgrade itself, there are approximately 10,000 vacant apartments, in addition to more than 100,000 temporarily occupied ones. Between the two most recent censuses, the number of apartments in Belgrade has increased by nearly 20 percent, despite the fact that the city’s population grew by only 1.6 percent during the same period.
Despite these challenges, Serbia continues to lead the region in terms of the number of building permits issued, with over 30,000 permits granted in 2023. By comparison, Croatia issued only 11,000 permits during the same period. This highlights Serbia’s dominant position in the regional real estate market, although the slowdown in certain sectors suggests the need for new strategies and adjustments to meet evolving market demands.
