The great recession in the real estate market in Serbia. The reasons are two.

The real estate market declined 13 percent in the second quarter. Housing loans are getting more expensive and homeowners are overpricing their properties, so adjustments are needed.

There have been significantly fewer building permits issued this year, which will affect supply in a year or two. Summer Effect. The real estate market in Serbia has been stagnant for some time now, because apparently both sellers and buyers are on vacation.

When it comes to prices, they are still holding up, RTS reports. "Current sellers have a philosophy of pricing their properties about 10 percent below the cost of new construction, in line with how much we need. "

If you buy a condo in an older building, you'll need 20 to 30 percent for curb appeal or remodeling, and you'll end up with a condo that's about more expensive than if you bought it in a new building. What is happening is that those who have sold an apartment are now looking for an apartment and pressuring them with deadlines," says real estate agent Milan Neskovic.

While there is no data on the third quarter, and it is already clear that it will be worse than the previous quarter, statistics from the State Surveyor's Office show that the value of the real estate market in the second quarter of this year amounted to 1.7 billion euros, 13 percent less than in the same period last year.

"Now we have extra-luxurious apartments in Belgrade, with prices per square meter ranging from 6,000 to 10,000 euros. And there are always buyers, but, I repeat, it is not only in Belgrade," emphasizes real estate agent Kaca Lazarevic. "As far as home lending is concerned, the situation here is already a bit more complicated. Housing loans have gone up, by nearly 100 percent or more. The economic situation in our country and in the world affects this, so sellers, we are talking about old apartments, do not realize that the economic crisis and the whole world is in crisis," says Neskovic.

Interestingly, in Belgrade, 86 percent of the real estate sold is not in the book. Apart from the suburban areas, in the capital you cannot buy an apartment for less than 2,000 euros per square meter, and in the central districts of the city the lowest price is 2,500 euros.

"Mostly people who sell, advertise their properties at unrealistically high prices, not realizing that the market has absolutely changed." We talk to them and put pressure on them so that if they want to sell, that adjustment is made. Price Adjustment "That adjustment is five, 10, 20 and 30 percent or less, depending on the price those selling wanted to advertise," Lazarewicz said.

There have been significantly fewer building permits issued this year, which will affect supply in a year or two. In general, less supply affects price increases, and on the other hand, when prices are high, there are fewer and fewer buyers who can provide the necessary funds. As for rent, it fell after a dramatic jump due to the arrival of Russians and Ukrainians, but has not returned to its previous level.