The average price per square meter of newly built apartments in Belgrade is expected to approach €4,000 by the end of the year, reflecting persistent demand pressures and limited effective supply in the capital’s residential market.
Market participants note that construction activity has intensified over the past year, particularly in Belgrade and its wider metropolitan area, as developers respond to strong buyer interest. Official permitting data show a noticeable increase in the number of building permits issued toward the end of 2025, with the majority relating to residential developments. However, the impact of this acceleration in construction will only materialise over the medium term, as newly approved projects typically require 18 to 36 months to reach completion and enter the market.
Despite higher activity, demand continues to outpace delivered supply. New apartments remain especially sought after, both by owner-occupiers and by investors treating residential property as a capital-preservation instrument in an environment of elevated inflation and financial uncertainty. This dynamic has supported sustained price growth even as financing conditions have tightened.
A notable feature of the current market is the narrowing price gap between new construction and older housing stock. In many parts of Belgrade, prices for older apartments have converged with those of new builds, a development that deviates from traditional valuation logic, where new construction typically commands a clear premium due to energy efficiency, modern standards, and lower maintenance costs. Market analysts attribute this convergence primarily to the overall shortage of available units rather than to qualitative parity between old and new buildings.
Location remains the dominant pricing factor. In central municipalities and well-connected urban zones, average prices for new-build apartments already exceed €3,000 per square meter, while prime and luxury projects achieve significantly higher levels. At the same time, the market for smaller units remains particularly active, with many buyers targeting apartments priced in the €120,000–130,000 range, which increasingly defines the lower threshold for entry into new construction in the capital.
Although the expanding pipeline of residential projects may gradually ease supply constraints, market participants do not expect meaningful downward pressure on prices in the near term. The structure of demand, combined with rising construction costs and persistent investor interest, suggests that Belgrade’s new-build apartment prices are likely to remain elevated even as additional units reach the market.
