Belgraders are buying fewer and fewer apartments, yet paradoxically, prices continue to rise: real estate experts reveal why the market is in chaos.

Real estate in Belgrade is becoming increasingly less affordable – over the past year, the volume of transactions in the capital has decreased by a staggering 32.15%, while the cost per square meter has risen by 5.79%. Real estate experts, commenting on the situation for the publication "Nova," point to the main reason for this contradictory state – a lack of supply. They also discuss the possibility of further price reductions per square meter in Serbia, similar to what is happening in other European countries.

The demand for apartments in Serbia, especially in Belgrade, has significantly decreased, with the largest drop in transactions recorded in the capital, as confirmed by data from the Republic Geodetic Authority. Against the backdrop of declining trade volumes, a decrease in prices is typically expected. However, the reality is quite different: prices continue to rise, and over the past year, the cost per square meter in Belgrade has increased by 5.79%. While this may seem like a modest increase, given the sharp decline in demand, this trend is indeed surprising.

Uroš Jovanović from the "Art Real Estate" agency explains that the main reason for this“imbalance”The factor between demand and prices is precisely supply. According to him, there is a shortage of supply in the market, which contributes to further price increases. Additionally, according to Nikola Chobich, an agent at the "City Expert" agency, new properties are an important factor that...“pulling up”The price is going up."Prices for new housing remain high."", and this affects the official data on price growth, while prices for old housing remain unchanged," notes Chobich for "Nova".

Jovanović also adds that January of this year marked a slight revival in demand. Given the poor offerings in the market, he sees no reason for prices to decrease in the near future."Prices have definitely reached a 'ceiling'."“And considering that people continue to be interested in purchasing, we will likely see an increase in the number of transactions.

Old apartments can make a difference. Chobich explains that the price differences between new buildings and old apartments can be significant. According to him, the difference between the price listed in the advertisement and the actual transaction price can be up to20-25%, and about80-85%The prices of old apartments are inflated.“When will the owners realize that they won’t be able to sell their apartments at inflated prices and will reduce them by just”5-10% "Then the differences between old and new apartments will become obvious." ", adds Chobich.

He explains that in this case, the price difference between old and new housing will become more noticeable, and the market will change."For example, a square meter in an old residential building may cost 2500 euros, while a similar one in a new building will be around 3000 or 3100 euros."As a result, people will prefer to buy old housing, as the difference will be more significant. Currently, when old housing costs 2800 euros, people are more inclined to purchase new apartments due to the smaller price difference," says our expert.

While property prices in Serbia continue to rise, the situation in Europe is becoming more favorable for buyers amid current changes. According to Eurostat data for the third quarter of 2023, in10 out of 27In some countries, there is a decline in housing prices. The most significant drop has been recorded in Luxembourg, where prices have fallen by13.63%over the year, and in Germany, there is a decrease of10.23%Additionally, housing in Finland has become cheaper by6.98%, in Sweden on4.23%and in the Netherlands on3.77%.

Jovanović comments on this situation by referring to the differences in consumer habits. He notes that in Serbia, where people have significant disposable income, they prefer to invest in real estate rather than in the stock market. Depending on their financial capabilities, some buy a garage, some a studio, and some a penthouse – however, real estate remains an attractive asset not only for the Serbs themselves but also for citizens of European Union countries who are purchasing property in Serbia.