According to a report by the State Audit Institution (DRI) of Serbia, revenues from the leasing of state-owned business premises have been steadily falling. In 2022, these revenues amounted to approximately 510 million dinars, while in 2023, they dropped to around 467 million dinars.
The audit also highlighted the lack of proper control over state property being leased, as well as the failure to take timely measures to collect lease payments.
As of 2023, there are more than 2,600 business premises owned by the State of Serbia, covering a total area of over 2 million square meters. The majority of these properties are managed by beneficiaries of the Serbian state budget.
The audit pointed out that, while the revenues from leasing state-owned business premises have decreased, there has been a rise in the expenditures by budget beneficiaries for leasing non-residential space, including business premises, which increased by about 40% from 2021 to 2023 (from 429 million dinars to 609 million dinars).
Additionally, the current leasing system for state-owned business premises is deemed ineffective. According to the report, business premises managed by the Republic Property Directorate (RDI) are not fully registered in the Real Estate Registry, hindering effective management. Furthermore, public bidding and the collection of written offers — ideal procedures for lessors — are not sufficiently utilized when leasing state-owned business properties.
The SAI also found that RDI does not take advantage of the opportunity to increase rents annually, based on market rates set by local government acts. Additionally, the Directorate does not adequately control the usage of leased state-owned properties or ensure the fulfillment of conditions for rent reductions during lease periods. The timely collection of due rents has also been an issue.
The report also revealed that over 220 units of state-owned business space, managed by the Ministry of Defense, covering more than 17,000 square meters, are not being used or leased as of 2023.
