Decline in real estate prices: Current situation in Serbia, all details

The good news is that for months now we have seen a decrease in the cost per square meter, but the bad news is that we are now seeing an increase in price in those municipalities where the cost per square meter decreased in previous months. This is shown by official data from the portal nekretnine.rs, the most recent as of May.

In short, the price per square meter has fallen in several Serbian municipalities, and this trend is no exception for Belgrade. Belgrade The biggest drop, 7.7%, was registered in Palilila municipality, where the average price in May was 2,300 euros per square meter, which is the lowest price for this location since the beginning of the year. In February, the average price in this municipality was 2,963 euros per square meter. A price decrease of 2.27% was also recorded in New Belgrade, resulting in an average price of €2,707 per square meter, €70 lower than in April. In Mirevo, the price per square meter was 1,881 euros, an increase of 1.62% compared to the previous month. In contrast, Mirevo declined 0.3% in April. This municipality of Belgrade, by the way, is one of the most sought-after in recent years, and prices have been rising here for a long time, but construction is becoming more and more intensive. In Voždovce, the average price in May was €2,469/m2, which is a slight increase of 0.28% compared to April. The most attractive locations in the capital, Center and Vrachar, also see price increases in May, and the average price per square meter in Center after a 1.19% increase is 3,388 euros, while Vrachar with a slight increase of 0.31% has an average price of 3,260 euros. It should be noted that these central municipalities were also down about 2% in April. Novi Sad In Novi Sad, two districts are also experiencing a decrease in the cost per square meter. The center of Novi Sad has a slight decrease of 0.04%, resulting in an average price of 2,681 euros per square meter. Then, Podbara with a price decrease of 1.50%, the average price is 2,567 euros/m2. The rest of the places recorded an increase in price.

The calming of the real estate market is inevitable. Nenad вЂorђeviћ, Chairman of the Governing Board of the Real Estate Cluster Association, recently told Blic Biznis that in the first quarter of this year, compared to the same period last year, the real estate market saw a 2.6% increase in the volume of transactions expressed in money, with a 9.5% decrease in the number of sales transactions due to price increases. He added that there will be a slight increase in prices, but there will be no decrease in real estate prices. - There will be no decline in real estate prices due to the strong demand that has existed since mid-2020, which prevents the real estate market from returning to the "old" times - that is, the 2017-2018 condition. Demand in the real estate market is high, despite less credit resources in the first quarter of 2023 with which to finance the purchase of real estate - says the interlocutor. He explains that in developed European economies and in the U.S., more than 80% of real estate market transactions are financed by credit, so lower economic activity, higher unemployment and uncertainty caused by war tend to lead to lower real estate market transactions. He notes that we do not have that situation.