Actual price per square meter in Serbia: Autumn - time for a shift in the home market?

The world has already started this trend, some of the most recent examples are America and some strong European economies such as Germany. For Serbia, experts simultaneously say that we should expect stabilization rather than dramatic changes. Blic newspaper recommends.

The price per square meter in Serbia increased by 30 percent on average last year, while prices in big cities such as Belgrade and Novi Sad were higher by 50 percent. The crisis and high demand last year played a role. Estimates suggest that our market is not expected to see big jumps this year, but neither is a sharp drop in prices. Market participants expect the first changes in the fall. MilicвЂokovic, a real estate expert, explains for Blic Biznis that the changes taking place in the global real estate market will not come to us quickly. - When it comes to Serbia, stabilization of the real estate market is expected in October or November this year. Prices will continue to rise, as they have in the past, at 1 to 2 percent a month, "Ђokovic said. - The market is expected to normalize and calm down, which means that we do not expect sharp price hikes like last year," Ђokovic concludes.

Photo: Mladen Šurjanac / Ringier

The price per square meter in Serbia

According to the latest report on the movement of real estate prices in Serbia, it is clear that the market has not yet calmed down, on the contrary. There was even a price increase in February. Especially in the case of the Palilua district, where the price per square meter increased by 388 euros. Belgrade traditionally ranks first in terms of the highest real estate prices. The largest increase was recorded in Paliluli, followed by Vojdovac. Prices per square meter in New Garden, as posted on nekretnine.rs, also continued to rise in February. New Population recorded an increase of 2.9 percent, meaning the average price rose to €2,146. The second largest increase was recorded at nekretnine.rs in Bulevaru Nemanjica in Niš, where the price per square meter increased by 8.05 percent and currently averages 1,987 euros. In Durlan, the price per square meter rose by 6.76 percent to 1,264 euros.

Changes in the US

It can be said that optimism about the final decline in apartment and house prices comes from America.

The biggest price drop in Sweden

Although it is smaller compared to Germany, Sweden's real estate market percentage experienced the biggest price drop since the beginning of 2023. It is 12 percent for homes, and agents fear it will reach 20 percent. France was also not left behind, and this European country recorded a price drop of 3 percent, and this happened in half of the largest cities. The effects of Brexit are still lingering in the UK, and they are certainly being felt in the real estate market of this island monarchy. Rents rose, but the median home price fell 2.3 percent in February, the fastest pace in 14 years.

Photo: Shutterstock.

The real estate market in Germany is cooling.

The country with one of the strongest economies in the world, Germany, has also seen a huge increase in real estate prices, even though it has had a fairly stable market. However, the latest data shows that prices are down 3.6 percent from the last quarter of 2021. This is the first drop in residential real estate prices since the same quarter of the previous year, which was recorded since Q4 2010 (down 0.5 percent from Q4 2009), according to the Federal Bureau of Statistics (Destatis). Compared to the previous, third quarter of 2022, the drop in real estate prices is even more significant at about 5 percent. Regardless of the recent decline, however, looking at the annual average, home prices throughout 2022 were 5.3 percent higher than in 2021. As the latest statistics show, prices for condos, single-family and two-family homes have declined more than they did in the 4th quarter of 2022, last seen in the 1st quarter of 2007 (down 3.8 percent from the 1st quarter of 2006).

The main principle in the real estate market is demand. The decline in purchase prices is likely the result of low demand caused by high financing costs and persistently high inflation. Since the beginning of 2023, houses have fallen in price more than apartments in both rural and urban areas. In Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf, prices for one- or two-family homes fell by an average of 2.9 percent and for apartments by 1.6 percent.

You want "Blic Biznis" to provide you with the latest and exclusive information about the economy and events in the business world, so that you read about the successes and failures of Serbian entrepreneurs, as well as about the cases that will bring a new era in business in Serbia and the world. Become part of a club that includes tens of thousands of managers. Sign up for the newsletter and expect the most relevant and exclusive information in your mail.