New Belgrade most wanted location for business - Office space demand increases in Q1 2014

The Belgrade Research Forum presented market indicators for Q1 2014 – total rent of office space, prices and yield rates of A class business premises.

Office space demand

In Q1 total gross activity totaled 15.503 m2, 62% of which refers to new transaction, 29% to rehabilitation of the existing lease contracts while the remaining 9% refers to expansion of the existing space. During this quarter, a total of 30 transactions have been finished with an average renting space of 517 m2.

When we analyze the location, New Belgrade is still the most wanted location for business with a stake of 83% transactions in Q1 in 2014. When it comes to demand per sectors, IT companies traditionally recorded the major stake of 53%, followed by banks and insurance houses with 14% and companies operating in professional services sectors with a stake of 12%.

Generated gross activity in Q1 2014, through significant demand increase, rose by 74% compared to Q4 in 2013. Comparing the annual level, in Q1 2014, total rented space (15.503 m2) is almost equal to the results generated during the same period 2013.

Renting prices and yield rates of A class in best locations

Office space renting prices of A class in best locations in Q1 did not generate changes compared to 2013 and they still vary between EUR 14 and 16,5 per square meter per month while estimated yield rates totaled 9 -9,5%.

Belgrade Research Forum set up

Similar like platforms for data exchange which exist in Warsaw, Prague, Bucharest and Zagreb, three leading consulting real estate companies in Serbia - CBS International" (a part of CBRE group), Colliers International and Jones Lang LaSalle set up the Belgrade Research Forum in late 2012 with an objective to collect, analyze and announce key real estate market data. Companies will, as of now, collect, analyze and publish on a three-month basis, the main market indicators such as the number of tented office space, rent amounts and yield rate of A class business space in the best locations.