Will Serbia become the "Balkan tiger" in the context of new economic realities?

The economic situation in Serbia

The economic situation in Serbia is generating significant interest due to impressive growth rates that have earned the country the nickname "Balkan Tiger." The pandemic, which affected the economies of many countries, had little noticeable impact on Serbia. According to data from local statistical agencies, the country's gross domestic product grew by 7.5% in 2021 compared to the previous year, when it had contracted by 0.9% in 2020.

Economic reforms and investments

Serbia is implementing numerous relevant economic reforms, making it one of the most attractive countries for doing business in Central and Eastern Europe. Since 2007, the republic has attracted over 37 billion euros in foreign investments.

Among the companies that have chosen Serbia to place their assets, the following can be highlighted:

• Bosch
• Michelin
• Siemens
• Panasonic
• Microsoft
• Schneider Electric

These facts strengthen Serbia's reputation as the "Balkan Tiger," harboring potential comparable to that of emerging markets in Asia.

Growth of salaries and purchasing power

It is important to note that the level of wages and the purchasing power of the local population are growing year by year. However, compared to other European countries, the average income of Serbs remains relatively low—around 600-700 dollars a month, while the unemployment rate hovers around 9%.

Real estate market

In the real estate market, record figures were set in the fourth quarter of 2021. The latest data from the National Geodetic Authority of Serbia indicates that the volume of real estate transactions during this period increased by 33.8% compared to the same period last year, reaching 1.8 billion euros.

During this time, 37,500 real estate transactions were recorded, setting a quarterly record and ensuring a 12.6% increase compared to the previous year.

Key regions of the real estate market

The leading position in this market is held by the capital of the country — Belgrade, which accounts for 41% of the total number of transactions. According to Ivana Timotijević, a real estate agent from Arin Invest, the Serbian market is primarily focused on local buyers; however, foreigners from countries such as Ireland and Sweden are also showing interest.

Consumer interest

Ivana noted that around five to six requests come in daily from Russia and Ukraine. However, most of them do not lead to deals due to difficulties with transferring funds.

Seasonal changes and price trends

Despite the traditional increase in real estate activity in spring, there is currently a noticeable sense of uncertainty. The main interest is focused on properties in Belgrade and Novi Sad.

Regarding housing prices, the Statistical Office of Serbia reports that the cost of apartments in new buildings continues to rise. In the first half of 2021, the average price per square meter in new constructions was around 1,500 euros.

Investment outlook

This data instills hope for further growth in both the economy and the real estate market in Serbia, making the country increasingly attractive for investment and immigration.

Market analysis of real estate in Serbia

In the analysis of the real estate market in Serbia, a wide range of prices for new housing can be observed. For example, in the Bujanovac area, the cost per square meter reaches approximately €450, while in Savski Venac, which is within Belgrade, the price exceeds €3000. The highest prices for new housing are seen in Belgrade and other cities such as Čačak, Novi Sad, Vrnjačka Banja, Mediana, and Pančevo. A noticeable increase in prices is also recorded in Kragujevac, Zrenjanin, and Užice.

Price map of new buildings

To illustrate the price categories of new buildings in various regions of Serbia, a map was created using color coding. For example:

• WhiteThe color indicates areas with fewer than three sold properties.
• YellowThe color indicates a price of up to $752;
• Orangeshows a price range from $752 to $940;
• Burgundy- from $940 to $1400;
• Brown- over $1400.

In some areas, information is missing, which is indicated by dotted shading.

Increase in housing prices

According to data from Data Investment, the research also identified the cities with the highest price growth rates in 2021. The highest figures were shown by:

• Belgradewith an increase of 31%;
• Queenfrom 27%;
• VršacandZrenjaninwhich showed a growth of 21%.

Real estate agent Ivan Timotievich from Arin Invest confirms that since 2022, housing prices have remained stable. However, it is expected that in March, activity in the real estate market will increase, which may lead to a new rise in prices.

Construction in Belgrade

In the vicinity of Belgrade, especially in New Belgrade, there is active construction taking place. Interestingly, despite the overall decline in the population of Serbia, the number of residents in the capital continues to grow, creating a high demand for housing. Moreover, foreign investors are eager to invest in the capital as it is the main economic center of the country.

Volume of real estate transactions

Recent data from CBRE shows that in the last quarter of 2021, the volume of real estate transactions in Belgrade reached record levels for the past four years. Additionally, activity in the construction sector is also showing a trend of steady growth. From October to November 2021, the number of building permits issued increased by 23% compared to the same months of the previous year.

Statistics of housing prices

According to the National Geodetic Authority of Serbia, the price per square meter of real estate in the capital continues to rise in both the primary and secondary markets. In the last three months of 2021, the average price for secondary housing was €1600 per square meter, which is 16% higher compared to the previous year. At the same time, the price per square meter in new buildings has nearly reached €2000, increasing by 11% compared to the same period.

Discussion of investment opportunities in Serbian real estate

Questions regarding investment in Serbian real estate generate a lot of discussion and debate among experts. One of the main concerns is that the housing market in Belgrade may be experiencing an oversupply, as apartment prices have increased significantly faster than the growth of household incomes in recent years.

Research conducted by the reputable consulting firm Deloitte has revealed that as of 2021, Serbia has the lowest housing affordability in Europe. Given the salary levels in the country, local citizens will need to save for 15 years to purchase an apartment of 70 square meters.

The situation in the rental market

On the other hand, the rental market in the capital shows a completely different situation — rental prices remain relatively low. According to data from the analytics service Statista, renting a home costs about 8 euros per square meter. Given the current property purchase prices, many investors in Belgrade are unlikely to expect significant profits from rentals, as the average rental yield is only around 3%.

Economic stability

Nevertheless, Serbia's economic stability is sending encouraging signals for property owners. It is expected that the rate of growth in housing prices will slow down, but this does not indicate that the cost of apartments in Belgrade will start to decline.

One of the significant advantages for foreign investors and those relocating is the possibility of obtaining a residence permit when purchasing real estate. The conditions for this are quite simple, and the cost of the property is not the main barrier. Moreover, digital nomads can also apply for a residence permit and work authorization.

Real estate market offers

What exactly is being offered on the current real estate market in Serbia?

• Apartment in Belgrade:For 668,000 euros, with an area of 138 square meters and three bedrooms. When purchasing this property, it is possible to apply for a residence permit, and the apartment can be viewed through online tours.
• Landmark Residence:An elite complex on Kralja Aleksandra Boulevard 142 with well-developed infrastructure solutions and a well-maintained park, creating comfortable living conditions.
• House in Subotica:The price is 15,000 euros, the area is 46 square meters, and it has been renovated. Inside, there is one standard room, a kitchen area with a hallway, and a bathroom. All utilities have been updated.
• Cottage in Novi Sad:The price is 400,000 euros, with an area of 250 square meters, just five minutes from the city center. The property includes a private pool and a water well.

Amenities near the Danube

Not far from the picturesque Danube, just a kilometer away, there are three shops, a school, a kindergarten, and a pizzeria, providing all the necessary amenities for residents. An apartment is for sale in Novi Sad at a price...126,825 €, with a total area of45 square metersThe apartment includes 2 rooms, 1 bathroom, and 1 kitchen. When purchasing this apartment, there is an opportunity to obtain a residence visa. An online viewing is also available.

New 1+1 format apartment

We are introducing a new apartment format.2which is already ready for occupancy and is located in one of the most sought-after parts of the city, in the Saymisht area, near the market. The area of this housing is44.5 m²It includes:

• Hallway
• Separate bedroom
• A cozy living room with a kitchen area
• Bathroom
• French balcony

This apartment is located at6th floorand delights the residents with its good lighting thanks to the well-designed window openings.

Apartment in Belgrade

There is also a comfortable apartment for sale in Belgrade, located near the Saint Sava Temple. This property is situated in the Vračar district, on a quiet street, and is located on the first floor of the building. The apartment includes:

• Living room with dining area and kitchen
• Two bedrooms
• Bathroom
• Pantry
• A large terrace accessible only to the owner.

The cost of this offer is225,000 €Excluding VAT. It should be noted that a buyer purchasing their first apartment may be eligible for a tax refund.

House in Subotica

In addition, a house is being offered in Subotica, with an area of260 m², at a cost of42,000 €This house is suitable for several families to live in, as it consists of three independent apartments, each with its own kitchen and bathroom. Each apartment includes:

• Two rooms each.
• Corridor
• Bathroom
• Kitchen with dining area

The floors in the house are made of parquet, and the heating system allows for the use of solid fuel with the option to connect gas. Radiators are installed throughout the entire area.

Elite apartments in Belgrade

The next property is an apartment in Belgrade that costs495,000 €and have an area83 square metersThese apartments are located in an elite part of the city - Belgrade Waterfront, on the right bank of the Sava River. They are in close proximity to the largest shopping center in the Balkans and the famous St. Regis hotel. The apartment is situated on23rd floor...and a stunning view of the city opens up, including the Sava River, picturesque towers, the Kalemegdan Fortress, the parliament, and New Belgrade.

Two-room apartment in Novi Sad

Additionally, a two-room apartment in Novi Sad is up for sale with an area of44 square metersThis property is located in the heart of the city and includes:

• Bedroom
• A cozy living room with a kitchen area
• Corridor
• Bathroom

He is on the last one,6th floorin an attic style. The apartment can be offered with furniture, the price will be110,000 €.

Elite housing in New Belgrade

In conclusion, premium housing is available in the Bežanijska Kosa area of New Belgrade with a total area of60 square meters, at a cost of185,231 €This offer represents a remote deal located in close proximity to the city, at the popular Belgrade airbase. The location is convenient - just a minute's drive from the main highway, 7 km from the center, and 10 minutes from Nikola Tesla International Airport. For the convenience of living and parking, a residential and commercial complex is provided on the premises.65,000 m²what is included280 housing unitsand500 parking spaces.

Sale of a house in Pannonia

In the picturesque region of Pannonia, near Bačka Topola in Serbia, an excellent house is for sale, with an area of 106 square meters. The plot on which this building is located covers 6.6 acres and also includes various auxiliary structures, among which is a separate summer kitchen of about 30 square meters.

All the buildings here are constructed from durable brick, ensuring their longevity. Electricity is supplied to all facilities in a three-phase configuration, which is a significant advantage for operation. Notably, this house is sold with furniture, adding convenience for the new owners and allowing them to immediately enjoy a comfortable environment. The possibility of connecting to rural utilities is perfect for those who value tranquility and distance from the hustle and bustle of the city.

Apartment in Belgrade

At the very bottom of the capital of Serbia, Belgrade, an 80 square meter apartment is available for sale for 240,000 euros. This residence consists of four rooms and is located in the popular Vračar district, in the well-known micro-location of Crveni Krst.

• The average cost of one square meter in this area is 3150 euros.
• Purchasing this apartment grants the right to obtain a residence permit.
• There is a video tour available that allows you to explore every corner of the apartment.

Stylish penthouse

In the real estate market of Belgrade, you can also find a stylish penthouse with an area of 104 square meters, priced at 364,000 euros. This four-room residence is located in a new residential complex built in Zemun.

The apartment is designed with high-quality finishing materials and features a convenient layout, including:

• a spacious kitchen-living room,
• three bedrooms,
• two bathrooms,
• pantry.

The large balcony offers a magnificent view of the surroundings, and the building itself was completed in 2023, so it has not had any residents yet.

Compact apartment for investment

A compact apartment in Belgrade is also available for purchase, with an area of 23 square meters priced at 110,000 euros. This offer may be particularly attractive to investors, as it is located in Lower Dorćol.

• Over the past five years, the apartment has paid for itself well, bringing the owner a net income of 650 to 700 euros per month thanks to renting it out through the Airbnb platform.
• Convenient location just a ten-minute walk from the offices of well-known companies.

Apartment in Zlatibor

There is also an interesting offer in Zlatibor — an apartment with an area of 41 square meters. It is located in a building complex under construction in the very center of the resort, not far from the gondola lift and the Adventure Park.

• This complex offers its residents a variety of amenities, such as:
• restaurant,
• two-level garage,
• spa center,
• pool,
• saunas and a gym for workouts.
• Currently, there are only ten apartments available, with sizes ranging from 30 to 48 square meters.

Apartments in the city center

Lastly, it's worth mentioning the opportunity to purchase an apartment with an area of 32 square meters in Belgrade for the price of 161,888 euros. This project represents a new attraction in the capital and includes:

• luxurious hotels,
• modern shopping center,
• an entertainment area with a long promenade.

The unique location of this property, just a few minutes' walk from historical landmarks, gives it special value. Each of the aforementioned properties represents a unique opportunity for investors seeking a combination of high quality of life and attractive returns in the real estate market in Serbia.

Conclusion

Of course, in conclusion, I must highlight that the economy of Serbia is on an upward trajectory, which is generating significant interest among both local and international investors.

Sustainable GDP growth and a confident recovery after the pandemic confirm the correctness of the economic reforms implemented in the country. Serbia has indeed become an attractive place for doing business in Eastern Europe, and many global companies are eager to establish their presence here, which reflects a high level of trust in the market.

Growth of salaries and purchasing power

The growth of salaries and the purchasing power of the local population is also encouraging. Although they are still below European standards, the trend of growth allows us to expect an improvement in the standard of living in the coming years.

Real estate market development

An equally important factor is the growing interest in rural real estate, especially during the spring season. This creates additional opportunities for active investments and infrastructure development.

With each passing day, Serbia is becoming increasingly attractive to both local and foreign buyers, which is significantly boosting the growth of the new construction sector. In the future, in addition to rising real estate prices, an even greater influx of foreign investments and improvements in social infrastructure are expected.

Key points

• Rapid economic growthand recovery after the pandemic.
• Attractiveness for international investorsand the opening of representative offices by global companies.
• Salary increaseand the purchasing power of the local population.
• Real estate market developmentwith the increasing demand for country properties.
• Increase in housing pricesand the expectation of further investment inflows.

Conclusion

Thus, against the backdrop of favorable economic indicators and demographic growth, Serbia reaffirms its title as the "Balkan Tiger." Investors, paying attention to current trends and future forecasts, have excellent opportunities for successful operations in this country, and I am looking forward to what comes next.

In conclusion, I sincerely hope that Serbia will continue to delight us with its successes and stable development in the economic sphere.