In Serbia, citizens most often take loans for vacations, education, home renovations, and cars, with the largest debt stemming from cash and mortgage loans. As interest rates have decreased, the reasons for borrowing have expanded. Real estate expert Ervin Pašanović notes that the number of apartment buyers using mortgage loans has risen by a third compared to last year, emphasizing that purchasing property on credit provides security throughout the process.
Since banks in Serbia introduced lower interest rates for consumer, cash, and mortgage loans for employees earning up to 100,000 dinars and for senior citizens, over 158,000 loans have been approved in just under three months, according to the National Bank of Serbia. Cash loans remain the most popular throughout the year, with December seeing a peak in demand due to the upcoming holidays, winter breaks, and celebrations. The average cash loan is approximately €8,000, with a maximum repayment period of 71 months.
Among borrowers, 60% are employed citizens and 40% are pensioners. Uglješa Džambić from the National Bank highlighted that 75% of loans were refinanced, while 24% were new cash loans, and 1% were consumer or mortgage loans. Banks report that loans are being repaid on time, and the default rate is currently at a record low.
Pašanović points out that mortgage-backed property purchases have increased by 36%, providing stability in the real estate market. He stresses that buying property on credit ensures a secure process, as banks will not approve loans for overvalued or undervalued properties.
For strategic investments, Pašanović recommends focusing on properties near planned metro stations, citing Surčin as an example, where prices have already tripled following the metro announcement. He emphasizes that there is no guaranteed formula for success, and that high risk often comes with high returns, making careful business and risk analysis essential.
