The global real estate market in 2025 is undergoing significant changes driven by economic shifts, demographic trends, and geopolitical events. In Serbia, despite a slowdown in construction activity, housing demand remains strong, with a growing trend of buying properties in cash and a rise in luxury apartment developments.
Falling construction activity
Across Europe, new housing construction is at its lowest in years. In Serbia, the number of issued building permits is down by 10% compared to the previous year.
Rising prices and costs
In cities like Smederevo, apartment prices have jumped from €900 to €1,600 per square meter in just three years. Small apartments are increasingly in demand but are becoming scarcer.
The cost of construction materials has surged by up to 300%, which, along with rising labor costs and legal delays in land acquisition, significantly impacts final apartment prices.
High demand, labor shortages
Demand for housing is still strong, as seen by numerous cranes across Serbian cities. However, the construction sector is facing a serious shortage of skilled workers. To meet demand, investors are increasingly relying on foreign labor.
Regional price differences
- In Belgrade, prices range from €2,500/m² on the outskirts to over €10,000/m² in premium developments like Belgrade Waterfront.
- Just 90 km from the capital, prices can be as low as €1,000–€1,200/m², despite similar construction costs, with location and demand being key price drivers.
Additional urban costs
Apart from material and labor, major urban centers like Belgrade, Novi Sad, and Niš have significantly higher land costs and municipal fees, which can account for up to 30% of the total cost of construction.
Market outlook
The market is currently experiencing a slight slowdown in both supply and demand. Investors are shifting towards building high-quality condominiums that meet modern buyer expectations.
