The prices of residential real estate in our country have increased, probably on an annual level of about 20 to 30 percent, said the president of the National Association of Appraisers of Serbia and professional real estate appraiser Danijela Ilic. She explains that the further trend of rising prices depends on a number of factors such as current inflation, rising prices of construction, construction materials, as well as labor shortages.
“Serbia is developing infrastructure in many places, and where the infrastructure starts, there is an immediate increase in the value of real estate,” she added.
Ilic explains that the market in our country functions on the basis of short-term signals. When there was an emergency situation, locking and inability to move, houses outside the cities became popular, and after the emergency situation ended, the demand dropped and the real estate prices of these facilities did not jump, as happened in much more developed markets.
“During the emergency situation, we had complete stagnation, there was no liquidity, so there were no sales. However, as soon as the state of emergency was lifted, contract realizations started, the market stabilized, and as far as residential real estate is concerned, it is still very liquid,” said Danijela Ilić
At the panel Financing and Valuation in Southeast Europe at the International Conference on the Real Estate Market of Southeast Europe “Balkans Property Forum 2021” it was pointed out that the pandemic caused an increase in prices of goods, services and energy sources, combined with increased inflation in Europe.
“It is difficult to predict the flow of money because we have an increase in internal leases, so it depends on commercial real estate as well as on how inflation and isolation will affect the market in the future, so it makes no sense to predict any cash flow,” said mortgage agent Srdjan Runjevac from Erste Bank’s Strategic Risk, Portfolio and Capital Management Division.
Runjevac emphasizes that there is no prediction, right or wrong opinion, one can only observe similar cases that have happened in the past in order to facilitate access to such situations in the future.
As an important thing, Runjevac points out that there were positive signals on the market during the pandemic in the form of transactions that affected even the office sales segment and that from the perspective of banks it is a positive signal that the market continues to function and investors are interested.
“It is reasonable in markets like Serbia that when people and investors are worried about the efficiency of currencies and inflation rates, they start researching income and, as an obvious solution, decide to invest in real estate,” said Milan Vicentic, executive board member and head of the Corporate Banking Sector of the Euro Bank, Nova Ekonomija reports.
