Russian nationals poured over €180 million into Serbian real estate in 2023, equivalent to the entire real estate market of Niš, according to Ivana Štrbac, head of the Real Estate Assessment and Valuation Department at the Republic Geodetic Authority, speaking to Bloomberg Adria.
She noted that a portion of Russian expatriates who relocated to Serbia opted to invest in purchasing apartments instead of renting, contributing to an increase in the share of foreign buyers, rising from three percent in 2022 to five percent last year.
Belgrade dominated the real estate market in 2023, accounting for 61 percent of all transactions, with €2.1 billion spent on apartment purchases in the capital, as per the RGZ report.
“The price index indicates a 5.7 percent increase in the fourth quarter of 2023 compared to the same period in 2022,” added Štrbac.
While Serbia saw double-digit growth in apartment prices at the beginning of last year, it has since reverted to single digits, signaling a trend of market stabilization.
“The apartment market is influenced by multiple factors, including a potential decrease in supply due to higher loan costs and interest rates, which are expected to decrease according to announcements from both the Fed and the European Central Bank,” Štrbac told Bloomberg TV.
New construction accounted for 45 percent of the total apartment turnover, but there was a notable decline in sales in upscale areas like Vračar, Stari Grad, and Novi Beograd.
“Sales of new construction decreased in these areas, while surrounding municipalities like Obrenovac and Mladenovac witnessed an uptick in sales,” she explained.
Additionally, there has been a surge in the number of sales contracts in Serbia over the past five weeks compared to the previous year.
“Market conditions remain uncertain due to economic and geopolitical factors, but despite this, we’re witnessing a notable recovery compared to the previous period characterized by declining sales,” concluded Štrbac.
