The real estate market in Belgrade is experiencing renewed stability, marked by a resurgence in demand for property purchases, which many view as a solid investment. Despite significant changes in recent years, including the influx of Russian buyers, their influence on the market has diminished. According to Uroš Jovanović, director of Art Real Estate agency, Russians now account for less than five percent of apartment purchases.
Market stability restored
After a dramatic spike in prices last year, the Belgrade real estate market has stabilized throughout 2024. Uroš Jovanović of Art Real Estate notes that the market is seeing a resurgence in demand for apartments, a notable recovery from the 30% decline in transactions observed in 2023. He attributes this stability to the long-standing trend of investing surplus money in real estate, which remains a preferred option for many investors.
Signs of recovery
Miloš Mitić, executive director at City Expert, concurs that the market has been stable since spring 2024. He observes that although the market is not experiencing the same linear growth as in previous years, current trends indicate a stabilizing effect on prices. Mitić adds that buyers now hold more sway in negotiations, with price increases becoming more noticeable in new construction segments.
New buyers are gravitating towards new buildings due to VAT refunds, escalating renovation costs, and the narrowing price gap between old and new constructions. Mitić reports that while the demand for old construction properties fell significantly last year, this segment has also begun to stabilize and show renewed activity since March.
Reduced Russian influence
The impact of Russian buyers on real estate prices has waned considerably. Although Russians are still active in the market, their influence on pricing is minimal. Mitić notes that while Russians contribute to overall demand, they do not significantly affect property prices. Jovanović adds that Russians make up about five percent of apartment sales but a higher percentage of rental activity. Many are seeking alternative accommodation as rental prices have stabilized and decreased from the highs of late 2022.
Rental and new construction prices
The rental market experienced volatility in recent years due to the Russian-Ukrainian crisis, with a surge in demand leading to a sharp rise in prices. This demand has since decreased, resulting in a roughly 15% reduction in rental prices according to Mitić’s estimates.
In terms of new construction, Jovanović highlights that prices in areas like Mirijevo and Karaburma range from 2,000 to 2,400 euros per square meter, with Mirijevo being the more affordable of the two. Over the past two years, new construction prices have increased by 20 to 50 percent, reflecting a 50 percent rise in some areas.
