Real estate market in Serbia worth EUR 3.6 billion in the past six months
According to the Report of the Republic Geodetic Authority on the real estate market in Serbia for the first half-year period of 2022, the value of the real estate market in the Republic of Serbia in the first half of 2022 was EUR 3.6 billion which represents record half-year worth.
The data show a slight increase in property turnover compared to last year and record amount of money on the real estate market – the volume of money has increased by 25%.
The number of sales and purchase contracts in the first half of 2022 surpassed the first half- year of 2021 by 4% or 68,274 sales
In Serbia, there were 25,775 apartments sold, 15,720 sales of construction land, 12,130 residential buildings sold and 11.779 sales of agricultural land.
For the first half-year of 2022 the number of sales and purchase contracts of garage spaces increased by 22%, the sales of office buildings increased by 9%, apartments by 8%, agricultural land by 6% and residential properties (houses, summer houses and collective housing ) by 5% compared to the same period last year.
Looking at regional data, the largest number of property sales in the first half of 2022 was realized in the province of Vojvodina, followed by the City of Belgrade and regions of Sumadija and Western Serbia whereas Southern and Eastern Serbia had the least properties sold. However, as before, the most expensive property was sold in Belgrade so the largest amount of money was traded in the City of Belgrade
When it comes the turnover of apartments, the sales and purchase contracts for new apartments made up 42% out of total apartment sales in the first half of 2022 which is 1% more than in the same period of the previous year.
In the first half of 2022 there were 25,775 apartment sold nation-wide, which is an 8% increase
compared to last year.
The average floor area of apartments in old buildings is 54 square meters and the average floor area of new apartments is 59 sqm.
Based on structure of old apartments
in the market, two/two-and-a-half room apartments made up 38%, one/one-and-a-half room apartments made up 28%, three/three-and-a-half room made up 13% and studio apartments made up 6%, four/four-and-a-half room apartments made up 2%, and apartments with one/two rooms, five bedrooms and other made up 2% whereas there is not data on number of rooms for 11% of properties.
Speaking of new apartments
on the market, based on structure wo/two-and-a-half room apartments made up 30%, three/three-and-a-half room made up 15%, one/one-and-a-half room apartments made up 12% , four/four-and-a-half room apartments made up 5% and studio apartments made up 3%, and apartments with one/two rooms, five bedrooms and other made up 1% whereas there is not data on number of rooms for 34% of properties.
The average price of old apartments
for the whole Serbia for the first half-year of 2022 was EUR 1,260 per square meter
, an increase of 19% compared to same period in 2021.
The average price of new apartments
was EUR 1,617 per sqm
, which is 11% more than in the same period last year.The highest priced new apartments are located at Belgrade Waterfront and they go from EUR 2,615 to EUR 9,5454 per sqm.
In the City of Belgrade, the locations of following residential complexes stand out: Novi Dorcol, Zepterra, K district, Petica, Kennedy Residence, Park Vila Residence and New Minel.
The most expensive old apartments are located in Belgrade municipalities of Stari Grad, Vracar, Savski Venac and New Belgrade.Commercial property
Commercial property transactions in the first half year of 2022 rose by 9% nation-wide compared to the same period in the previous year. There were 1,765 signed sales and purchase agreements of office space
Business premises sold include shops, offices, business properties of unspecified purpose, business apartments and storage and warehouse spaces
The most office space transactions happened in the area of following municipalities: Novi Sad - 241, Raska - 146, New Belgrade - 142, Cajetina - 90, Medijana (City of Nis) - 64, Vračar - 52, Zvezdara - 52, Stari Grad - 49, Palilula - 45, and Subotica – 41.The prices of commercial property ranged from EUR 50 per sqm to EUR 12,240 per sqm.
The floor area of property on sale up to 30 sqm comprised 33% of data, properties from 30sqm to 60sqm – 60% of total data, properties from 60 sqm to 150 sqm – 22% and spaces over 150 sqm made 15% of data.Highest prices on the real estate market The highest price of a square meter in an apartment in Serbia in the first half of 2022 was traded in the Belgrade Waterfront, in Savski Venac municipality and it cost EUR 9,545 per square meter.
It has a surface area of 97 m2 and is a newly built apartment. As for apartments in old buildings, the highest price per square meter was EUR 4,902
set aside for an apartment on Belgrade municipality of Stari Grad. It has a surface area of 66 m2.
The apartment for which the most money was set aside in the first half of 2022 was a newly-built apartment, and the price was EUR 1,530,000. It has an area of 349 m2 and it is located in the municipality of Stari Grad.
The most expensive house was sold in Savski Venac municipality for EUR 2,900,000.The most expensive square meter of commercial property was sold in Stari Grad municipality for EUR 12,240
and it has the area of 29 m2. The highest contract price of office space, EUR 10,200,000, was reached in the municipality of Palilula.Methods of payment
Based on the data collected from sales and purchase contracts, 12% of all real estate in the first half-year of 2022 were paid from credit funds
, which is 4% less compared to the first half of 2021. Credits are mostly used for apartment purchases.
In the first half of 2022, 28% of apartments in Republic of Serbia were paid for through credit funds, which is 8% less than in the first half-year of 2021.The third quarter in the real estate market in Serbia
When it comes to the third quarter year, the total volume of money on the real estate market was EUR 1.7 billion, an increase of 10.6%
compared to 2021.
The total number of sales and purchase contracts in the real estate market was 34,503, a decline of 0.9 compared to the third quarter of 2021. Looking at city areas, the most sales and purchase agreements were recorded in the City of Belgrade – 8,013 contracts
In the third quarter of 2022, sales of apartments had the biggest share in the total amount of money traded in real estate market – EUR 935.2 million
out of which EUR 579.6 million was set aside for aparrtments in Belgrade.
The share of sold aparrtments in the amount of money in the market in the third quarter of 2022 was 57%, which is 1% more than in the same period in 2021.
In the third quarter of 2022, 10% of purchased properties were paid for with credit funds
, which is 4% less compared to the same period in 2021. Credits are mostly used for purchase of aparrtments – 25% a 8% less compared to the third quarter last year.
The highest amount of money – EUR 1,280,350 - in the third quarter of 2022 was put aside for new apartment in Vracar and has a surface area of 301 sqm. The most expensive square meter in apartments in Serbia
for the third quarter of 2022 has been sold in Belgrade Waterfront, in Savski Venac municipality. It`s a new apartment that cost EUR 10,400 per sqm
and it has the surface area of 97 sqm.
The most expensive square meter of office space was traded in Belgrade municipality Savski Venac for EUR 10,110, it has the area of 179 sqm and it is also the highest constract price for office space – EUR 1,810,000.
What is the situtation on the real estate market in Bosnia and Herzegovina?
*1 EUR= 1,95 KM
In the first half of 2022, the biggest total value of sold apartments in new buildings was in Banja Luka, KM 60 million , followed by Doboj with KM 13.6 million, East New Sarajevo with KM 11.9 million and Bijeljina with KM 9.8 million.
The average price of a square meter of a completed apartment in a new building was the highest in Banja Luka, KM 3,627 per sqm, then in Trnovo (Jahorina), KM 3,052 per sqm and in Trebinje KM 2,636 per sqm, the data of Institute of Statistics show.
In the first half-year of 2022, the total value of sold new apartments in Republika Srpska was KM 121.7 million. The most expensive apartment in a new building was sold in Banja Luka for KM 4,843 per sqm.
– This year, together with June 30, 2022 the biggest increase in property turnover was recorded in Banja Luka and Bijeljina. In 2021, in these units of local government more than one third out of the total number of sales and purchase agreements in Republika Srpska (37.5 %) was recorded by the Republic Authority for Geodetic and Property Affairs (RUGIPP) in Republika Srpska and the trend has continued this year as well, RUGIPP told eKapija.
The average price of square meter in category “apartments purchased from investors” in Republika Srpska was KM 1,625 per sqm on a sample of 332 apartments. The lowest average price of apartments was recorded in Lopare municipality (KM 800 per sqm) and the highest average price was in the Banja Luka area, KM 2,300 per sqm.
The average price of square meter in apartments in category “old buildings” in Republika Srpska was around KM 1,500 per sqm, recorded on a sample of 480 apartments. The lowest average price of apartments was recorded in Vlasenica municipality (KM 280 per sqm) and the highest average price of apartments in Banja Luka was Km 2,300 per sqm.
– Based on the data, we can conclude that Banja Luka has the most attractive apartment market in Republika Srpska and that the average price of new apartments is best reflected on the level of analytic units ( units of local self-government). It should be pointed out that the average price depends on the market micro-location and the number, usability and the complexity of sales and purchase agreements (sample). Also, the said period recorded sales of apartments in old buildings in the narrow and wider Banja Luka city area, RUGIPP says.
The highest total price for an apartment in a new building in Banja Luka was KM 437,892.96 for an apartment with the surface area of 154.5 sqm whereas the highest price per square meter was KM 3,661 pew sqm for an apartment with the area of 56 sqm. The highest total price of the apartment in an old building was KM 302,433 for the apartment with an area of 93.8 sqm whereas the highest price per square meter was KM 4,086 per sqm for an apartment with the area of 36 sqm.
The lowest total price of a new apartment was KM 92,000 for a 40 sqm apartment and the lowest price per square meter was KM 2,227 per sqm for 62 sqm apartment. The lowest total price for an apartment in an old building was KM 48,000 for the 24 sqm apartment and the lowest price per square meter was KM 1,721 per sqm for a 86 sqm apartment.
The most expensive property was sold in Trnovo municipality (the city of East Sarajevo) with the contract price of KM 8,000,000. It is a building land plot with the area of 8,588 sqm.
The average price of building land in Republika Srpska was KM 25.00 per sqm on the sample of 3,397 properties. The average price for commercial property in Republika Srpska was KM 1,843 on the sample of 108 properties. The highest price of sold office space was KM 990,000 for 498.9 square meters (in Prijedor) and the highest price per square meter of office space was KM 4,889.6 per sqm (in Jahorina)
Montenegro : The demand for squares is on the rise, and so are the prices
In the past few years the real estate market in Montenegro has been very dynamic. The interest of foreign investors was a significant factor but so was the expansion of luxurious properties due to the development of resorts along the Montenegrin coast.
Despite the crisis causes by the coronavirus epidemic followed by the Ukraine war, the demand for real estate is on the rise and so are the prices. That`s why the average price of a square meter for new apartments in the second quarter of 2022 was EUR 1,375 which was an 11.5% increase compared to the same period in 2021, and compared OT the first quarter it rose by 8.7%.
The price of the square meter for new apartments in Podgorica was EUR 1,393, whereas the highest prices are still along the coastline where the average price was EUR 1.473. The cheapest square meters can still be found in the middle area, at EUR 611 per sqm , whereas the average price of a square meter in new apartments in the north was EUR 915.
Statistical Office of Montenegro states that the average price for a square meter in a new building is largely dependent on the share of apartments in solidarity housing.
– If the share of these apartments is bigger, the average price of new apartments would be much lower and if the total share is lower the average price of new apartments will be higher , the Statistical Office explained.
The average price of apartments in new residential building in Montenegro in category “enterprises” in the second quarter was EUR 1,425, whereas in category “solidarity housing development” was EUR 591.
Investments in real estate property amounted to EUR 283.3 million
As was mentioned before, the real estate market in Montenegro is very dynamic and the interest of foreign investors has markedly increased. According to the data of the Central Bank of Montenegro, the total inflow of foreign direct investments in 2021 was EUR 927.33 million out of which EUR 278.28 million were real estate investments. It is a growth of 139.13% compared to the year before.
If we take a look at this year, the total inflow of foreign direct investments in the January-July period was EUR 653.47 million which is a 44.53% growth compared to the same period last year. The Central Bank stated that this was a result of increased ownership investments where property investments totaled at EUR 238.3 million, an increase of 100.25% compared to the same period.
The biggest property investments in the first eight months came from Germans – EUR 39.55 million, followed by Russians with EUR 31.87 millions invested and Serbians invested EUR 28.49 million.
More than 23,000 foreign citizens own properties
According to the Cadastre and State Property Administration of Montenegro, more than 23,000 foreigners own real estate in Montenegro.
The Administration recently told Vijesti daily that the data show that 23,364 foreign citizens officially owns a property in Montenegro.
That is 66,840 land plots and part of plots with the total area of 22 905 ha, 9,593 buildings with the floor area of 544,859 sqm, 25,319 floors and parts of floors (residential, non-residential, office and auxiliary spaces) the total area of 1,333 870 sqm. The Administration could not confirm the value of properties owned by foreigners, but they said that most of them came from Serbia, Russia and B&H.
Value of construction works
Monstat`s data for 2021 indicate that the total value of finished construction works was EUR 792 million, a 4.8% decrease compared to 2020.
The value of finished construction works on buildings was EUR 329 million and on other structures was EUR 463 million. In 2021, 3.07 thousand apartments with the usable area of 191,000 sqm were completed.
The decline in construction activity has continued in 2022. The first quarter recorded the decline of 5.2% compared to the same period in 2021 and a decline of 17.8% compared to the last quarter of 2021.
However, the second quarter brought the increase in value of construction works of 1.5% compared to the same period last year and compared to the first quarter of 2022 the value of construction works grew by 8.5%.
In the second quarter of 2022, 86 construction permits and notices of commencement were issued in Montenegro. Out of that amount, 55 permits were issued to natural persons and 31 permits were issued to legal persons.
Looking at the total number of apartments and their surface areas, based on the amount of notices of commencement issued in the second quarter of 2022, the start of construction of 333 apartments with the total surface area of of 23,184 sqm is expected.
Aleksandra Kekic, Teodora Brnjos, Dragana Obradovic