The decline in Euribor is expected to result in more favorable loan conditions but also an increase in real estate prices. The real estate market has a significant impact on the economy through tax revenues from property transactions and rentals, which contribute to the national budget and open opportunities for new investments. Experts suggest that now is an ideal time to start negotiating for purchasing an apartment and that institutions should focus on this sector of the economy. The real estate market has shown signs of revival, with increased activity over the past few months. While prices are rising, the pace is slower than before, and supply is also growing.
Experts agree that buying an apartment is a better choice than renting. “If you plan to live in the apartment, if you are creditworthy and have the funds for a down payment, buying an apartment is worth it,” says Ljubiša Banovački, president of the Association of Professional Property Managers.
He notes that buying an apartment is a long-term investment and a better option than monthly rental payments. Currently, apartments are more frequently purchased as investments rather than solutions to housing needs.
According to data from the Real Estate Cadastre, 85% of apartments in Serbia are bought with cash, while 25% are purchased with loans.
Milić Đoković, vice president of the Expert Council of the Serbian Real Estate Cluster, explains that 100,000 euros in a loan can effectively generate 450,000 euros in cash. “People often wonder where all this cash comes from. There is no cash; cash is the bank, which starts and effectively rolls over the liquidity, and then it multiplies,” Đoković explains.
Investors report that new apartments are sold even before construction is completed.
Regulation and taxation of rental properties
An unregulated rental market poses risks, resulting in losses for the state and problems for property owners, writes RTS. Changes to the Housing Law, including the requirement for professional property managers to maintain records of rentals, are seen as a way to regulate the market.
Ljubiša Banovački explains that professional property managers require property owners to indicate whether they live in the apartment or commercialize it through the completion of a registration form. This is crucial for maintaining contact with tenants in case of emergencies.
Milić Đoković emphasizes the importance of serious property management, pointing out that managing real estate is not a simple task. “You can’t assign a value of 200,000 euros for 500 euros without considering the implications,” he says.
There is no accurate record of how many apartments are rented out in Serbia according to the latest census. While 123,000 people reported living in rented apartments, only about 2,000 property owners have paid rental tax.
