Prices in 2023 increased by 10% compared to the time of the COVID-19 pandemic, but it is not expected to rise further as a decline in interest rates, inflation, and construction costs is anticipated.
European companies in the automotive and electronics industries, consumer goods, and e-commerce are interested in initiating production in our region. This is confirmed by the industrial and logistics real estate market, which is booming, especially in Serbia, Croatia, and recently in North Macedonia due to the availability of labor.
The trend that will shape the market in 2024 is “nearshoring,” bringing production closer to end customers. This is evidenced by the interest of numerous Japanese and Chinese companies, suppliers to Tesla, BYD, and Nidec. As previously reported by Bloomberg Adrija, five of Nidec’s suppliers are from Japan, and one is from China. The first of them, the Japanese company JFE Shoji, recently announced the opening of an auto parts factory in Indjija.
Also, due to lower production costs, German companies, such as Schott Pharma, and Italian Ariston, which is building a factory for water heaters in Nis, are coming here. Generally, manufacturing facilities are moving south of Novi Sad, while in Subotica, there is no more available space for factories and warehouses.
According to a survey conducted by CBRE, last year 23% of investors wanted to invest in this real estate sector, while in 2024, as many as 43% of them will do so. These data were presented at a conference on real estate market outlook for 2024 organized by CBRE.
As stated, in the last 12 months, active markets were Serbia, Bulgaria, and Croatia, reported Bloomberg Adria.