Apartments in Belgrade cheaper by up to 25% - research by consulting company "Colliers International"

The prices of apartments in Belgrade have dropped by 15 to 25% against year 2008, and they should be decreased by additional 10% by the end of year 2009. Office space is also cheaper, the prices in class A have been decreased from 18 to 16 EUR per square meter, while the price in class B amounts to 12.5 EUR. These are the results of the research done by "Colliers International", the real estate consulting company.

Jovica Jakovac, the CEO of company "Colliers", explained that, according to the estimates, the prices on Dedinje, in Stari Grad and Dorćol would remain the same, while the prices in suburbs and New Belgrade's blocks would be decreased.

- The consequences of the financial crisis in the first half of the year affected the real estate market, so that the demand for apartments has significantly dropped over the last few months. Large demand in the past few years led to increase in prices, so that the average price in Belgrade was higher than in much more developed countries in the region. Over the last few months, the prices of old apartments have been decreased - said Jakovac and added that, according to the data provided by the Republic Statistics Institute, the average price of housing space in Belgrade in 2008 reached about 1,900 EUR.

Speaking of the situation in Serbia, he pointed out that the prices had dropped the most in Novi Sad, while the prices in Niš were still unchanged.

Rental of office space is also cheaper because of the financial crisis, so that 1 square meter in A class can be rented for 16 EUR. In order to reduce business costs, investors are not moving to larger offices yet, although they announced that, and some of them are even reducing the space they operate in.

As Jakovac explained, total surface of office space in Belgrade amounts to about 600,000 square meters, 13% of which is vacant.

- Because of the current situation in our market, the investors are willing to help tenants and offer them free parking space, few months free of charge, etc. - he explained and pointed out that "the time has never been more favorable for rental of space".

People in "Colliers" are optimists because, according to the research, construction works in Belgrade will be intensive within the next four or five years in both center and New Belgrade, as well as in the surroundings of Belgrade.