Serbs living and working abroad are increasingly investing in real estate during their visits to Serbia. This trend is not just about vacationing or visiting family and friends, but also involves purchasing property. The Serbian diaspora shows a strong preference for new developments. In Belgrade, they invest in properties, while in smaller towns, they buy apartments due to emotional connections with their hometowns. The Serbian real estate market has seen significant changes since the pandemic. According to the Republic Geodetic Authority (RGA), real estate transactions reached 6.5 billion euros last year, a 57.8 percent increase from 2019.
The diaspora, with its millions of members worldwide, plays a crucial role in this market, representing a substantial investment potential. The National Bank of Serbia reports that remittances from the diaspora account for 8 percent of GDP, highlighting their economic impact, including on the real estate sector.
Diaspora’s impact on the market
Miloš Mitić, Director at City Expert, a real estate agency, explains that while the diaspora’s demand for real estate is steady, it spikes during holiday seasons, such as summer, Easter and Christmas.
“In recent years, Serbs abroad have increasingly invested in real estate. Data from 2023 shows that the diaspora’s share in Belgrade’s real estate market ranges from 10 to 15 percent, and in smaller towns, it can be as high as 30 to 40 percent or more. For instance, in Leskovac’s new residential-commercial complex, Sajam Residence, half of the apartments were bought by Serbs living abroad,” Mitić told Bloomberg Adria. Last year, the RGA reported 121,627 real estate transactions, with 41,896 involving apartments. In Belgrade alone, 15,953 apartment transactions were recorded. Based on City Expert’s extensive database, it’s estimated that Serbian expatriates may have purchased between 1,500 and 2,200 apartments in the capital, and between 7,000 and 10,000 apartments in other regions, including Vojvodina, Southern and Eastern Serbia, Šumadija, and Western Serbia.
Investment focus
Mitić attributes the diaspora’s interest in Serbian real estate to unfavorable conditions in their countries of residence.
“In Belgrade, the real estate market is investment-driven. Money earned abroad is often invested in apartments, typically those up to 50 square meters, which are easy to rent out or resell. Generally, people from this region, including the diaspora, prefer investing in real estate as a safe way to preserve wealth,” Mitić explained. He noted that the diaspora primarily buys new apartments in central Belgrade neighborhoods such as Vračar, Stari Grad, Zvezdara, and Novi Beograd, with prices ranging from 3,000 to 3,500 euros per square meter. These investments are often in modern residential complexes that offer amenities like parks, playgrounds, covered parking, swimming pools, spas, gyms, sports courts and even childcare facilities and schools. Recently, those with lower budgets have been opting for properties in areas like Surčin, Borča, and Ovča, where prices are below 2,000 euros per square meter.
Returning diaspora
Another group within the diaspora consists of individuals returning to live in Serbia, often in their birthplaces or where family and friends reside. Mitić emphasizes that for these buyers, the purchase of real estate is not just an investment but also a matter of prestige and quality of life. “They care about their neighbors, their children’s upbringing, nearby amenities, and the safety of the area. For them, buying property in Serbia upon returning is an emotionally significant investment, typically involving a substantial portion of their capital accumulated abroad,” Mitić added.
Stable market in 2023
RGA data for 2023 indicates a stabilization in Serbia’s real estate market following two years of dynamic growth driven by the pandemic. The highest volume of transactions occurred in Vojvodina, while the least was in Southern and Eastern Serbia. Apartment sales represent 26 percent of the total real estate transactions, with Belgrade accounting for 61 percent of all apartment sales. The capital also leads in the value of traded garage spaces (74 percent), commercial properties (53 percent), business premises (51 percent), and construction land (36 percent).
In addition to apartments, the market saw transactions involving agricultural land (17 percent), construction land (16 percent), and houses (13 percent). The highest apartment price was achieved in Belgrade’s Savski Venac municipality, with a 383-square-meter apartment sold for 2,601,888 euros and a record price per square meter of 11,475 euros. The most expensive house, sold for 4,802,000 euros, was also in Savski Venac, while the priciest parking space, at 63,000 euros, was in Belgrade’s Stari Grad.
In conclusion
Over 90 percent of Serbian families own at least one property, a high rate compared to other countries. For example, in Germany, less than 40 percent of people own property, with many Europeans spending their lives paying rent.
