Will there be a holiday in 2023? Prices per square meter are growing, experts gave an unexpected answer

Real estate prices have been rising for some time. In two years, the average cost per square meter of housing has increased by about 30 percent. Some places in major cities have seen prices go up 70 percent, and usually 25 percent. We asked the experts: "What can we expect next year - will the bubble burst or will we face a new price rise? "

Bearing in mind that prices per square meter have been rising for more than two years, many expected at least stagnation, if not a fall.

But circumstances and high demand have made it so that the real estate market remains stable, and the price of a square meter of real estate is increasing month after month - not only in Belgrade, but all over Serbia.

MilicвЂokovic, a real estate appraiser and expert, tells Blitz Business that there is now a calm period, but that does not mean that prices will not rise.

We expect prices to stagnate and growth to be weak, and these are circumstances that occur as a result of rising inflation. All the parameters we have checked show a trend towards a weak continuation of price growth. This means that there will not be a sharp increase and the trend we saw earlier, and the increase will follow inflation. What that increase will be depends on the movement of inflation, says MilicвЂokovic.

Ђokovic also notes a decline in the number of building permits, which he says could further contribute to price increases in the near future.

In the third and fourth quarters of 2022, the number of permits issued fell by 20 percent, which means as many fewer will be built in 2024 than now. This means that there will be one-fifth fewer new buildings than there are now. That part will have to be made up either with old buildings or legalization. Because if this does not happen and there is no serious supply of apartments, unfortunately, prices will continue to "rage". These are the factors that influence the real estate market, that is, the law of supply and demand - states our interlocutor and continues:

"Unfortunately, in our country, when prices spike, it is difficult to expect a return to the past. Even in 2009, prices only froze, they didn't fall. People were waiting for things to go back to the way they were, but it didn't happen.".

The same opinion is held by Nenad Ђorђević, chairman of the board of directors of Real Estate.

We can expect stagnation with some slight growth, and this is due to the fact that in 2022 prices have increased significantly due to the increase in mortgage rates because of the rise in Euroboro.

Jelena Davdoviћ, head of the sales department of the portal Nekretnine.rs says for Blitz Business that despite the global crisis, rising inflation and slowdown in construction, demand for apartments is still high. Although citizens are looking forward to a price correction after a big increase, forecasts say that only a slowdown in market growth will occur.

A slowdown in price growth is expected. Experts predict that the market will stabilize from October next year, but there will be no reduction in prices, only a calming of the market. One thing is for sure, 2023 will be a challenge, especially when it comes to conditions for mortgage approvals as well as rising interest rates, as ECB leaders say rates will rise until the middle of next year - says our interlocutor and adds:

If someone creates good conditions next year, the recommendation is to start an action called buying an apartment. No one can answer the question of how long the global crisis will last, and that is why you should always invest in real estate when you have the opportunity," concludes Davidovich.

The average price of a square meter of a new building - 1337 euros

One example speaks best of all about price changes. For 50,000 euros two or three years ago you could buy about 40 square meters in a new building in the center of Belgrade. That's not possible today. For this amount you can find only small apartments, i.e. living rooms in old buildings and basements.

According to the RGZ report of September this year, the average price of a square meter in the center of the capital is 3078 euros. According to this report, the cheapest average square meter in a new building is in Rakovica district - 1655, and in Cukarica district - 1695 euros. As the report of the portal Nekretnine.rs shows, the average price of a square meter in the center of Belgrade in November was 3150 euros. In Novi Belgrade the price was 2633 euros and in Mirijevo it was 1750 euros. In Novi Sad, the average price per square meter is around 2,500 euros, in the center of Niš almost 1,800 euros, in Kragujevac 1,282 euros, and in Pančevo 1,404 euros per square meter.

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