The office space market in Belgrade is experiencing growth, with 95,000 square meters of new office space set to be completed by the end of 2024. Currently, over 110,000 square meters are under construction, with major projects like BIGZ, Delta District, Airport City, and Panorama Office underway. Vacancy rates for class A and B offices in Belgrade have dropped to about four percent, a 40% decrease compared to last year.
In the retail market, Serbia’s commercial real estate sector saw a turnover of 300 million euros in 2024. The retail sector led with 60% of transactions, followed by hotel space with more than 30%. The sale of the Promenada shopping center in Novi Sad for 177 million euros was the largest transaction in Southeast Europe last year. Retail parks are growing, with 10 new parks opened across Serbia, and the market for shopping centers remains stable, focusing on renovation and expanding entertainment offerings.
The office market in Belgrade saw a slight rent increase of 2-3%. Demand continues to favor high-quality office spaces, especially those meeting ESG (Environmental, Social and Governance) standards. These criteria are increasingly shaping the market, with over 50% of office spaces in Belgrade now certified for sustainability.
In conclusion, both the office and retail markets in Serbia are showing solid growth, with a focus on high-quality, sustainable properties meeting new tenant demands.
