Belgrade’s real estate market has traditionally lacked a significant offering of small apartments and studios, but recently, interest in these compact living spaces has surged, particularly as prices rise. Micro-apartments, a popular trend in cities like Paris, New York and Tokyo, have begun to make their way to Serbia. Apartments under 20 square meters are increasingly common in listings, with some as small as 10 square meters being offered for prices up to 52,000 euros.
Experts suggest that the market shift is a response to the larger trends in real estate development that began around the year 2000, when private investors began dominating the sector. At that time, most residential units built were spacious, averaging between 80 and 100 square meters, with very few developers focusing on smaller apartments. According to Adria Kaća Lazarević, owner of a local real estate agency, the construction of small apartments, which was common in the 1950s through the 1980s, nearly vanished with the rise of large-scale developments. The current market, however, is starting to bring back smaller units.
Official statistics show that in 2022, only 15.9% of apartments in urban Serbia were one-room units, which includes studios. Data from the Republic Statistical Office (RZS) also reveals that most apartments being built today are large, with the average size of new apartments standing at 71.2 square meters. Large residential projects are still more common, with only 11.6% of new apartments set to be built in single-unit buildings, while the remaining 87% will be in multi-unit buildings with an average apartment size of 59 square meters.
Smaller apartments gaining traction
Investors are now realizing that smaller apartments may be more profitable, as rising inflation and property prices have made larger units less affordable for many buyers. According to Lazarević, even potential homeowners who could previously afford a larger space are now opting for smaller living units. This trend is contributing to a rise in the construction of 20 to 50 square meter apartments. The average price for apartments in Belgrade ranges from 2,000 euros to 10,000 euros per square meter.
“In the last six months, we’ve seen a stagnation in real estate sales, and many investors are now focusing on smaller apartments,” says Lazarević. As demand for smaller living spaces continues to grow, she has received numerous inquiries for apartments, but the supply remains limited. “Three people contacted me today, each with a budget of 60,000 euros, but we have nothing to offer them.”
Unlike in major global cities where micro-apartments are a standard part of urban planning, many of the “small apartments” on the Serbian market are often just converted rooms, basements, or attics that do not meet legal requirements for residential units.
Small apartments in high demand
The limited supply of studio apartments is reflected in listings on real estate platforms. For instance, on the 4zida website, there are just under 30 ads for apartments smaller than 20 square meters. The smallest of these is a 10-square-meter unit in Zemun listed for 52,000 euros. This apartment is not registered, and while it has central heating, it is unclear whether it includes a bathroom. Another 18-square-meter apartment in Medaković is being sold for 50,000 euros, while a registered 19-square-meter unit near the Wolf Monument is priced at 90,000 euros. Prices vary significantly based on location, with prices in Zemun starting at 2,300 euros per square meter, and prices in Belgrade’s central areas reaching up to 10,000 euros per square meter.
Real estate experts point out that demand for small apartments is consistently high, with many potential buyers looking for affordable housing options. Lazarević mentions that young people and working professionals, often with financial support from their parents or inherited wealth, are the primary buyers for these small units. Banks are typically hesitant to approve loans for such small apartments, making it more common for buyers to pay in cash.
Lazarević further explains that approximately 90% of buyers for small apartments are looking for places to live, while larger, higher-quality apartments are usually purchased for rental purposes.
The changing landscape of construction
While small apartments are in high demand, regulations in Serbia have made it more challenging to build new units under 30 square meters. According to Nedeljko Malinović, director of the real estate agency Legat, current legal requirements state that any building project must include residential units larger than 29 square meters to qualify for a building permit. As a result, the construction of micro-apartments in Serbia is unlikely to be a widespread trend in the near future, despite their rising popularity.
While the demand for small apartments in Belgrade continues to grow, the limited supply and legal hurdles make them a rare and valuable commodity. As the market shifts, developers will likely need to adapt to these changing demands, offering more affordable housing options that cater to the growing demand for smaller, more efficient living spaces.
