Real estate prices in Serbia: Should I buy an apartment now or wait?

Prices for square meters are falling in all Serbian cities, apartment prices are falling to the level of two years ago, rental prices are also falling in Belgrade - these are just some of the headlines that the media noted this summer and made potential apartment buyers and tenants happy.

Whether both sides rejoiced too soon, where today you can buy an apartment in Belgrade for 1000 euros per square meter, how Novi Sad has approached the capital in terms of prices, what are the trends in tourist centers - these are the questions that eKapija portal investigates.

The report of the State Geodetic Institute for the first half of 2023 shows that the trend of stabilization and decline continues after two years of pronounced growth, which''followed the outbreak of the coronavirus pandemic. In addition to the decrease in activity, the real estate market is still at a higher level compared to pre-pandemic values. The total amount of money used to buy real estate amounted to €3.3 billion, 81% more than in the first half of 2019 (pre-pandemic) and 7% less than in the same period of the previous year. The total number of transactions in the first half of the year amounted to 60,014, 26% more than in the second quarter of 2019, before the pandemic, and 12% less than in the second quarter of 2022.

Besides Belgrade, prices are also slightly decreasing in other cities. According to the specialized real estate website 4zida, the average reported prices of apartments for sale are stabilizing and''are slightly decreasing in the second and third quarters of this year. PR manager of 4zida Aleksandra Mihajlovic tells eKapija portal that the average reported price of real estate in Belgrade in the first quarter of 2023 was 2,500 euros per square meter, in the second quarter - 2,462 euros, and in the third quarter - 2,433 euros. - Novi Sad has also seen a slight decrease in prices.

The executive director of the agency City expert Miloš Mitic agrees with this, explaining that the slowdown on the market''real estate was expected. According to him, factors such as the situation in Ukraine and restrictive monetary policy with high interest rates have affected the decline in demand for real estate. According to Mitic, stabilization and a slight decrease in prices can also be observed in Belgrade, especially in some parts of the city, especially in older buildings. - Currently, we are noticing a price decrease of about 10% in old buildings, while new buildings remain mostly stable. Investors have become more cautious about pricing, so overpricing is rare. Investors who keep prices high may face slower sales dynamics," warns Mitic.