Coronavirus and Real Estate: Why Apartment Sales in Serbia Have Flourished

Real estate prices in Serbia continue to rise despite the coronavirus pandemic and the economic difficulties many people are facing. According to data from the Republic Geodetic Institute, the average cost per square meter of housing in Belgrade has increased by 250 euros compared to last year. Many experts attribute this to the increased demand for real estate in the context of uncertainty caused by the pandemic. People are eager to invest in real estate, viewing it as a reliable capital investment.

Buying real estate remains a challenging task for most Serbian citizens due to high prices and low purchasing power. The average salary in Serbia is around 550 euros per month, and it would take a lifetime to save up for property. As a result, many people are forced to seek loans and credits.

Experts believe that the increased demand for real estate is driven by three main factors. First, people are looking for safe ways to preserve their funds in the context of economic instability. The second factor is the limited alternative investment options in Serbia. Bank interest rates are low, and there are virtually no other opportunities for investing money.

It is unknown whether the rise in real estate prices will continue in the future. A possible factor that could lead to a decline in prices is an economic crisis caused by job losses. However, so far, government financial incentives have helped preserve jobs and mitigate the effects of the crisis. An increase in the supply of real estate on the market could also be a potential reason for falling prices. However, it is still difficult to say when this will happen.

Housing construction in Serbia, especially in Belgrade, is continuing actively. In 2020, more than 25,000 apartments were built, and the average price per square meter of housing in Belgrade is 2,145 euros. Several large projects are underway, including the "Belgrade Waterfront" project and the residential complex "New State" in Palilula.

In any case, real estate investors in Belgrade can remain calm for now, as the demand for housing is still high. People are still interested in buying property, and every apartment finds its buyer.