Despite a booming residential construction market in Belgrade and other Serbian cities, investors remain cautious when it comes to hotel projects, even as the need for accommodation rises, particularly in Belgrade ahead of the 2027 EXPO. Serbia currently has 417 operational hotels, including 109 in Belgrade, but experts agree that to meet the demand for EXPO 2027, the city will need to increase its hotel capacity by at least 30-40%, which translates to approximately 3,000 new rooms.
Although there are significant state subsidies available for hotel construction, uptake has been slower than expected. As of October 9, only a few projects have applied for the government incentives, totaling a planned investment of €231 million, far below the €578 million allocated for such projects.
The Serbian Chamber of Commerce (PKS) highlights that Belgrade, Novi Sad, and tourist regions like Zlatibor, Kopaonik and Vrnjačka Banja are facing the highest demand for new accommodation, including family hotels, “adults-only” hotels, and glamping resorts. However, despite the potential for growth, the time needed to recover investments in Serbia’s hotel sector remains a challenge, often estimated at 10-15 years, similar to European markets.
With EXPO 2027 drawing near, the Serbian government has emphasized the importance of expanding the country’s hotel infrastructure, especially in Belgrade, to accommodate the expected influx of visitors. However, the actual number of new hotels expected to open between 2024 and 2027 is still far below the necessary target, signaling a gap in investment momentum.
