The Covid-19 pandemic has not substantially affected the real estate market in Serbia, which points to the fact that, as always, the factor of supply and demand is what determines the state of the market, as shown by the analysis of the data from the first half of the year done by the Republic Geodetic Authority (RGA).
The report from the real estate market in the first six months says that, in Serbia, in that period, the number of transactions compared to the same period last year dropped by 14%, whereas the number of pieces of real estate that changed ownership dropped by 13%, and the amount of money in the market dropped by 8% in the total transaction amount of EUR 1.7 billion. The conclusion is that more expensive pieces of real estate were being sold and purchased.
On the whole, analyzing the 2017-2020 period by half-year portions, Covid-19 had an impact on the number of the pieces of real estate sold and purchased and the participation of money in the market, whereas a stable growth of the average value of the real estate being sold and purchased continued.
The RGA points to the fact that, in the past three years, the real estate market in Serbia has expanded and experienced the biggest growth since 2008. Low interest rates, law amendments and legal construction, the fact that Belgrade is a major crossroads in Southeast Europe, a large number of foreign offices and the well established belief among the citizens that an investment in real estate is a secure investment have all contributed to this.
The report says that the average prices in the territory of the Republic of Serbia in the first half of 2020 were 997 euros per square meter for old apartments and 1,337 for new ones, whereas, in the first half of 2019, the prices were 950 and 1,320 euros per square meter respectively.
In the first half of 2020, the participation of foreign citizens in these transactions was close to 1%. Compared to the previous periods since 2017, the percentage is the same, except in 2019, when it was 2%.
In the real estate market in the Republic of Serbia, in the first half of 2020, 40,884 real estate sales and purchase contracts were signed, processed by the RGA through the Register of Prices of Real Estate. The number of transactions is 14% lower than in the same period in 2019.
The number of new apartments sold is 12% lower than in the first half of 2019.