Authored by the expert who managed and guided the team behind the Serbia Property Pack
Yes, the analysis of Belgrade's property market is included in our pack
What is happening in Belgrade’s real estate market? Are prices on the rise or decline? Is the city still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the heart of Belgrade to its surrounding neighborhoods. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Belgrade real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
1) Belgrade will attract more foreign investors due to its strategic European location
Belgrade has become a focal point for foreign investors, largely due to its strategic location in Europe. In 2023, Serbia attracted USD 4.5 billion in foreign direct investment, which was about 6.1% of its GDP. This trend continued into 2024, despite geopolitical challenges, thanks to high FDI inflows and government initiatives aimed at boosting investment.
One of the key reasons for this interest is the significant improvement in infrastructure and transportation links. Serbia has been investing heavily in infrastructure, with plans to construct and upgrade 500 kilometers of highways, 2,000 kilometers of railways, and two metro lines in Belgrade by 2025. These developments are set to enhance the city's connectivity, making it even more appealing to foreign investors.
Additionally, Serbia's ongoing accession negotiations with the European Union play a crucial role. The country's strategic location and alignment with EU policies make it an attractive destination for investors looking to tap into the European market. The Serbian government also offers favorable tax policies and incentives to foreign investors, further enhancing its appeal.
Sources: Foreign direct investment (FDI) in Serbia, Republic of Serbia - IMF eLibrary
2) Chinese investors in Belgrade will increase as Serbia and China strengthen economic ties
In recent years, the economic relationship between Serbia and China has grown significantly. This has been evident through various infrastructure projects, such as the Belgrade-Budapest railway, which is a major initiative by Chinese companies. Such projects not only enhance connectivity but also attract more Chinese investors to the region.
Additionally, the trend of increased foreign investment in Serbia, with China leading the way, suggests a rise in Chinese property purchases in Belgrade. The Belgrade residential market, for instance, saw substantial transactions in early 2024, indicating ongoing real estate activity that Chinese investors are likely participating in.
Moreover, official reports have highlighted that Chinese investment in Serbia reached €1.4 billion in 2022, nearly matching the combined foreign direct investment from all EU member states. This underscores the strengthening economic ties between the two countries, which is expected to draw more Chinese investors to Belgrade.
Sources: China Observers, Property Forum, European Parliament
We have made this infographic to give you a quick and clear snapshot of the property market in Serbia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Central Belgrade will see higher rental yields as demand for short-term rentals grows
In recent years, Belgrade has seen a significant rise in tourism, with 2023 marking a notable increase in visitors. This surge was largely driven by international tourists, which has naturally led to a higher demand for accommodations, particularly short-term rentals.
By 2024, the number of active Airbnb listings in Belgrade had grown to 5,099, reflecting this increased demand. The median occupancy rate for these short-term rentals was 64%, which is considerably higher than what long-term rentals typically achieve. This indicates a strong preference among travelers for short-term stays, especially in central locations.
Moreover, the Serbian government's initiatives to promote tourism have further fueled this trend, leading to more tourist arrivals and overnight stays. As a result, property owners in central Belgrade are experiencing higher returns on short-term rentals compared to traditional leases, making these properties an attractive investment.
Sources: Cord Magazine, Airbtics
4) Yields on older properties in less developed areas will drop due to rising maintenance costs
Older properties in less developed areas are seeing a decline in yields because maintenance costs are rising.
Imagine needing to replace plumbing pipes in your bathroom and kitchen; it could set you back between €1,200 and €1,500. Over time, these costs add up, especially when you consider that maintaining a building over 15 years, including tasks like painting and sanding, can cost over €1.5 million.
On top of that, property taxes are creeping up, partly due to government pushes for energy efficiency. This means property owners are finding it tougher to keep their investments profitable.
Tenants are also looking for newer buildings with modern amenities, leaving older properties with higher vacancy rates. This shift is fueled by changing tastes and European regulations that favor sustainable living.
New developments are popping up with better facilities, making it hard for older properties to compete. This trend is making it even more challenging for owners of older buildings to attract tenants.
As a result, the combination of rising costs and shifting tenant preferences is putting a squeeze on the profitability of older properties in these areas.
Sources: City Expert, Belgrade Property Market Report Q4 2023, MDPI
5) Virtual reality tours will become more popular, enabling remote property viewings for buyers
Virtual reality tours have become increasingly common in the real estate industry, allowing buyers to view properties remotely. This trend has been driven by several key factors that have emerged over the past few years.
Firstly, the global market value of VR in real estate was projected to reach $2.6 billion by 2025, highlighting a significant increase in adoption. This growth is supported by the fact that real estate listings with virtual tours receive 87% more views, and potential buyers spend much longer on these listings compared to those without virtual tours. These statistics clearly show that virtual tours are not just a novelty but a valuable tool for engaging potential buyers.
Moreover, consumer preferences have shifted towards remote property viewing options. Surveys have shown that more than 50% of adults have taken a virtual tour, and a significant majority of home buyers expressed a desire for virtual tours when looking at listings. This preference is particularly strong among younger buyers, aged 18 to 34, who are much more likely to book a showing if a virtual tour is available.
Technological advancements have also played a crucial role in making virtual reality tours more accessible and affordable. Improvements in predictive analytics and cognitive computing have enhanced the quality of VR tours, while AI-powered 3D virtual tours offer cost-effective solutions for real estate companies. These advancements have made it easier for real estate agencies, including those in Belgrade, to offer virtual tours as part of their services.
Sources: PhotoUp, Precedence Research, EZ Real Estate Tools
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6) Palilula will attract more investors with its ongoing urban renewal projects
In recent years, Palilula has become a hotspot for investors, largely due to its ongoing urban renewal projects. Property prices in the area have surged, reaching up to €2,553 per square meter, marking a 28% increase from previous years. This rise in property value is a clear indicator of growing interest and confidence in the neighborhood's potential.
The construction sector in Serbia, particularly in Belgrade, has been booming, with a significant number of building permits being issued. This trend suggests a high demand for new constructions in Palilula, further fueled by the government's active investment in public infrastructure. These improvements, especially in transportation and public amenities, make Palilula more appealing to investors.
Moreover, the Belgrade Metro Project, which includes a 15.4-kilometer underground network passing through Palilula, has garnered substantial media attention. This project is set to enhance the area's connectivity and livability, making it an attractive option for both residents and investors. Additionally, new residential and commercial developments, such as the Delta Planet shopping mall, are sprouting up, indicating a growing interest in the area.
Sources: Aparthotel, Roncucci & Partners, Belgrade Metro
7) Tech professionals will keep flocking to New Belgrade for its expanding business district and modern infrastructure
New Belgrade is quickly becoming a hotspot for tech professionals.
In recent years, the area has seen a surge in tech companies setting up shop, with big names like Synechron leading the charge. This global digital transformation leader's new office in Belgrade is a testament to the region's growing allure for tech firms.
The Serbian Government is also playing a pivotal role by investing over $70 million in Artificial Intelligence and tech research. This substantial financial support is key to building a thriving business district that continues to draw in tech talent.
Modern office spaces and coworking hubs, such as Davinci’s coworking space, are popping up all over New Belgrade. These spaces offer tech professionals flexible work environments with high-speed WiFi and all the essential office tools, catering to a dynamic and productive workforce.
Adding to the buzz, New Belgrade hosts the SPLET Tech Conference, the largest of its kind in the region. This event provides tech professionals with ample opportunities for networking and learning from industry leaders, further cementing the area's reputation as a tech hub.
Sources: Synechron, Davinci Meeting Rooms, SPLET Tech Conference
8) Suburban rental yields will drop as more people choose city living
In recent years, we've seen a noticeable shift in where people want to live, especially in places like Belgrade. Back in 2023 and 2024, property prices in Belgrade's city center were on the rise, making it a hot spot for both investors and residents. This trend suggested that more people were interested in living in the city, which naturally led to higher rental yields there compared to the suburbs.
One of the main reasons for this shift is the higher demand for urban living spaces. People are drawn to the city because of its improved infrastructure, amenities, and cultural attractions. This increased demand has driven up rental prices in central Belgrade, making suburban areas less attractive for renters and investors alike.
Surveys from the past few years have shown that younger people, in particular, prefer city living. They enjoy the lifestyle benefits, such as easy access to cultural and social attractions, public transportation, and other urban conveniences. This preference for city life has contributed to a decline in rental yields in suburban areas.
Another factor is the rising rental prices in central Belgrade, while suburban areas have seen stable or even declining prices. This difference indicates that the city center is becoming more desirable, leading to a decrease in rental yields in suburban areas.
Sources: Global Property Guide, Macrotrends, World Population Review
We made this infographic to show you how property prices in Serbia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Belgrade’s property prices will rise moderately due to limited supply and high demand
Belgrade's residential property prices are on the rise, and this trend is set to continue.
One key reason is the limited supply of new housing in the city's central areas. With fewer new homes being built, existing properties are becoming more valuable. This is because demand remains strong, driven by people wanting to live in the heart of Belgrade.
Rental prices are also climbing, which is a clear sign of strong demand for housing. More people are choosing Belgrade as their home, attracted by its rich culture, history, and lively atmosphere. This makes the city a hot spot for both locals and expatriates.
The city's booming tech and startup scene is another factor. It's drawing in young professionals who are eager to live in trendy neighborhoods. This influx is putting pressure on the housing market, as land availability is limited, making it hard to meet the growing demand.
In these popular areas, the competition for homes is fierce, pushing prices even higher. The combination of a vibrant lifestyle and job opportunities makes Belgrade an attractive place to settle down.
Overall, the residential property market in Belgrade is thriving, with prices expected to keep climbing due to the ongoing demand and limited supply.
Sources: Welcome to Serbia, Biz Expats, Taunya Fagan
10) New Belgrade’s new developments will yield higher returns by attracting young professionals
New developments in New Belgrade are set to offer higher yields due to their strong appeal to young professionals.
Over the past few years, New Belgrade has become a hotspot for young professionals, thanks to its booming job market and modern lifestyle offerings. The area is buzzing with new opportunities, drawing in talent from all over. As these young professionals flock to the city, they're on the lookout for contemporary living spaces that match their dynamic lifestyles.
New Belgrade is transforming into a vibrant business district, with enhanced infrastructure and connectivity that make it a prime location. The development of transport hubs and improved services cater to the needs of those who value convenience. This is especially appealing to the tech-savvy crowd, as the tech and startup sectors are thriving here, attracting even more young talent.
Investors are taking note, as real estate market analyses predict higher appreciation rates for new developments in the area. Property prices and rental yields are on the rise, making these investments particularly attractive. The government's incentives for new projects further sweeten the deal, adding to the area's allure.
Young professionals are not just looking for a place to live; they want a community that offers a blend of work and play. New Belgrade's modern amenities and vibrant social scene provide just that, making it a magnet for this demographic. The area's transformation into a central business district is perfectly aligned with their preferences.
With the ongoing growth of the tech and startup sectors, New Belgrade is set to continue attracting young talent. This influx of professionals is expected to drive demand for rental properties even higher, ensuring that new developments remain a lucrative investment opportunity.
Sources: Welcome to Serbia, ETF, Yidaiyilu, BTI Project, Welcome to Serbia
11) Demand for luxury rentals will increase among international business travelers
In recent years, Belgrade has become a hotspot for international business activities, which has significantly increased the demand for luxury rental properties. One of the main reasons is the rise in international business conferences and events, such as the Belgrade Economic Forum. This annual event attracts leaders from South-East Europe, fostering communication and collaboration among them.
Additionally, the city has seen a surge in multinational companies establishing offices, like Synechron, a global digital transformation consulting firm. This trend indicates a growing business presence in Belgrade, which naturally leads to more international business travelers visiting the city. Furthermore, the growth in foreign direct investment in Serbia, with real estate transactions reaching EUR 3.4 billion in the first half of 2024, highlights increased business activity and interest in the region.
Belgrade's improved infrastructure and transportation, including the expansion of the Nikola Tesla Airport, have also made the city more accessible to international travelers. This enhanced connectivity supports the demand for luxury rentals, as business travelers seek convenient and comfortable accommodations. Moreover, the luxury real estate market in Belgrade is thriving, with high-end apartments and penthouses experiencing price increases, reflecting strong demand.
Sources: 10times, Synechron, eKapija
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12) Efforts to cut air pollution will attract health-conscious buyers to certain areas
Efforts to reduce air pollution are making certain areas more appealing to health-conscious buyers for several reasons.
First, the improvement in air quality in specific neighborhoods, like Kostolac, shows a positive trend. This is due to increased monitoring and fewer instances of pollutant thresholds being exceeded, which suggests a healthier environment for residents.
Additionally, Belgrade's Urban Greening Plan and the expansion of the Belgrade Waterfront are creating more green spaces. These projects not only improve the microclimate and support biodiversity but also enhance public health, making these areas more attractive to those who prioritize a healthy lifestyle.
Moreover, government initiatives, such as the new law on air protection and environmental fiscal reforms, demonstrate a commitment to long-term air quality improvement. This reassures potential buyers about the sustainability of clean environments in these areas.
Sources: BOS, Urban by Nature, World Bank, United Nations Serbia, Belgrade Waterfront
13) Affordable housing projects will stabilize prices in some outer Belgrade districts
Belgrade is seeing a surge in affordable housing developments in 2023 and 2024.
The city has launched a project to build 1,100 new apartments, many of which are available with very affordable loan terms. This initiative is designed to help households with urgent social needs find suitable housing. Additionally, the City of Belgrade is pushing forward with plans to construct 5,000 housing units for vulnerable groups, such as Roma refugees and internally displaced persons (IDPs). These projects focus on low-cost and subsidized rental options, backed by a 15 million Euro investment in social housing.
There's a noticeable shift in housing preferences, especially among younger people, who are increasingly interested in flexible living arrangements. This trend is boosting the popularity of co-living spaces, which are expected to triple by 2025. This shift towards leasing rather than buying could significantly impact housing trends in Belgrade's outer districts.
While residential prices in Belgrade have remained relatively stable, new affordable housing projects are likely to help stabilize prices in certain areas. For example, the median sales price in Belgrade has only seen a slight increase from Q3 2023 to Q3 2024, suggesting that these projects are playing a role in keeping prices in check.
Sources: UNECE, Taunya Fagan
14) Property values in Vračar will increase as it emerges as a cultural and culinary hub
Vračar is on the rise as a cultural and culinary hotspot, making it a prime area for property investment.
In recent years, Serbia's housing market has been thriving. The housing price index jumped by 4.74% last year, and early 2024 reports show a promising value of 160.49. This indicates a robust market, with property prices expected to grow between 3% to 7% in 2025.
Real estate in Serbia is booming, with EUR 3.3 billion in purchases in 2023, an impressive 81% increase from pre-pandemic times. Vračar stands out in this trend, with property prices ranging from €1,500 to €3,500 per square meter, showcasing its vibrant market and high investment potential.
Vračar's culinary scene is thriving, with new restaurants and cafes popping up, drawing food lovers from all over. This boom is attracting international buyers, especially as travel returns to normal. The area is gaining media attention as a cultural and culinary destination, which is driving up property values.
As Vračar becomes more popular, its appeal to both locals and foreigners is growing. The influx of visitors and potential residents is boosting the local economy and making it a sought-after place to live.
With its vibrant atmosphere and growing reputation, Vračar is set to become a key player in Serbia's real estate market. The combination of cultural attractions and culinary delights is transforming the area into a desirable location for property buyers.
Sources: Aparthotel, Place Informatics
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.