The real estate market in the Balkans in 2023: what does it look like?

In the last few years, the Balkans have become an increasingly attractive destination for foreign investors - the diversity of landscapes, natural beauty and various cultural traditions make this region an attractive place for real estate investment. However, we have seen the real estate market dynamic in recent years. Many factors, such as the current geopolitical situation, matching supply and demand, available mortgages and interest rates, and conditions for foreign investors, directly affect the market. With this in mind, in this blog post we explore real estate prices in the Balkans in 2023, as well as the conditions and tax obligations for foreign investors in several key countries.

Real estate in Montenegro is the most profitable investment for foreign nationals.

The good supply of real estate in Montenegro in recent years has attracted foreign investors for several reasons - favorable taxes and affordable financial opportunities make it a worthwhile investment. For many, Montenegro is a pillar of different traditions, with a rich cultural heritage and picturesque history, which is evident in the architecture, gastronomy and hedonistic lifestyle. Property prices on the Montenegrin coast are rising and popular destinations such as Budva, Kotor and Tivat are in high demand. However, prices can vary depending on location, property type and market conditions. For example, a studio apartment (new construction) in Rafailovici with an area of 40 square meters costs about 147,000 euros, while in Budva the cost of a living room with an area of about 20 square meters is about 75,000 euros. Foreign citizens can buy real estate in Montenegro under the same conditions as local citizens - you only need a valid passport and a personal card. However, there is one nuance - if you plan to live in your new home for more than 90 days, you will need to obtain a residency permit. There are 2 types of residence permits - visa for short-term stay (C) and visa for long-term stay (D).

Real estate in Croatia - coastal destinations are the most popular choice of investors.

The real estate market in Croatia is active, especially on the coast and popular tourist destinations. Cities such as Dubrovnik, Split, Zadar and Rovinj attract investors with their cultural heritage, beautiful beaches and tourist infrastructure. Property prices vary depending on location, proximity to the sea, size and condition of the property. Foreign investors are able to buy real estate in Croatia, but there is a certain restriction for foreigners from non-EU countries who can only buy certain types of real estate. The tax liability for foreign investors includes the payment of a 4% transfer tax on the value of the property. The most expensive apartments are in Split, where the price per square meter ranges from 3 to 8000 euros.

The real estate market in Serbia is gradually growing.

The real estate market in Serbia shows stability and gradual growth. Belgrade is the main center of investor interest, but other major cities such as Novi Sad and Niš are also seeing an increase in demand. Property prices in Serbia are affordable compared to some other European countries, but can vary depending on location and type of property. The data show that 15.4 million euros more was spent on real estate in Belgrade than in the same period last year. In addition, the largest number of sale and purchase agreements, 6,924, was also recorded in the capital. In the first quarter of 2023, the average price per square meter in Belgrade was 2,409 euros, in Novi Sad it was 2,304 euros, while in Niš it was slightly more affordable at 1,441 euros. Foreigners can buy real estate in Serbia under the same conditions as local citizens. The tax liability for foreign investors includes the payment of an absolute transfer tax of 2.5% of the value of the real estate.

Real estate in Greece is one of the most profitable.

Greece is known for its beautiful islands and Mediterranean charm, making it an attractive destination for investors. Foreign investors can buy real estate in Greece, but there is a certain restriction for properties located near the border or on the islands. The average price per square meter in Halkidiki is €1,875, while in Thessaloniki it is €1,762. The tax liability for foreign investors includes the payment of transfer tax ranging from 3% to 24% of the property value, depending on the value and type of property. A passport or personal card, proof of residency and authorization to purchase real estate are required. Each country has its own conditions, tax obligations and documentation to consider when buying real estate. It is important to research thoroughly and consult with experts before deciding on this type of investment. The Balkans is a region that is attracting more and more investors with its beauty, culture and business opportunities, and with the right approach, investing in real estate in this region can be a rewarding and satisfying experience. Keep an eye on our website for even more interesting articles!