Investing in real estate has traditionally been seen as a long-term profitable investment, but the question remains: which type of property yields the highest profit?
Real estate agents have observed for years that those with capital are investing in apartments, purchasing them and renting them out to tenants. The demand for garages and parking spaces for rental purposes is also on the rise, as is the case with agricultural land owners.
A recent analysis explored what would yield the highest return if an investment of EUR 100,000 was made in real estate. The calculation shows that the annual profit from investing in apartments and garages is nearly identical, followed by earnings from renting agricultural land. It’s important to note that farmland doesn’t require additional investments and has an indefinite lifespan. Depending on the location and size of the apartment, EUR 100,000 could buy two studio apartments or a 40-square-meter apartment on the outskirts of the city, which are among the most sought-after types of apartments in Novi Sad.
The monthly rent for a studio apartment in the city center is about EUR 350, while a 40-square-meter apartment rents for around EUR 400. Taking the average, that would be EUR 400 per month, which amounts to EUR 4,800 annually in rental income.
Where is the most expensive hectare?
When it comes to agricultural land, the price varies significantly based on land quality, location, and how far the parcel is from the road.
The most expensive hectare is found in the South Bačka and Srem districts, where it can cost up to EUR 40,000, with an annual lease of around EUR 700. In other parts of Vojvodina, the price of a hectare is much lower, affecting the lease price as well. For example, in Banat, a hectare costs up to EUR 1,000, and the lease price can be as low as EUR 10 per hectare. Prices vary across Serbia, but agricultural land in Vojvodina has been actively traded over the past five years.
Recent data from the Republic Geodetic Institute (RGZ) highlights that agricultural land sales generated the highest revenue, with the biggest deal in the third quarter of last year reaching EUR 8.15 million for eight parcels totaling 390.9 hectares, located in the Sombor municipality.
RGZ: EUR 1.3 Billion from apartment sales
The Republic Geodetic Institute also reported a rise in apartment sales during the fourth quarter of 2024, marking the third consecutive quarter of growth.
“During the fourth quarter of 2024, there was an increased demand for apartments in Serbia, with 13,372 apartment transactions (a 20.6% increase from the same period last year), totaling EUR 1.3 billion (44.4% higher than last year). All regions saw an annual increase in both sales and market value,” the RGZ report states.
If we consider the entire Vojvodina region and assume the average price of a hectare is EUR 20,000, EUR 100,000 would purchase five hectares. With the average annual lease of EUR 600 per hectare, the profit would be EUR 3,000.
Garages are also a significant investment in Novi Sad, where finding parking space is becoming increasingly difficult. Garage prices in the city range from EUR 10,000 to EUR 40,000, with monthly rents between EUR 70 and EUR 150. If we assume the average price of a garage is EUR 25,000, EUR 100,000 could buy four garages, which could be rented out for EUR 100 each per month, bringing in a total of EUR 400 or EUR 4,800 annually—similar to the profit from apartment rentals.
