Authored by the expert who managed and guided the team behind the Serbia Property Pack
Everything you need to know before buying real estate is included in our Serbia Property Pack
Why is Serbia emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the rapidly growing tourism sector, or the competitive pricing compared to other European markets? What are the key benefits for investors?
We frequently encounter these questions because we are actively engaged with developers, real estate agents, and investors like you. Given the rising interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a compelling case for investing in Serbia's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect in our content or wish to learn more, please don't hesitate to reach out (we respond very quickly). Your feedback enhances the quality of our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) Many people from the Serbian diaspora buy property back home, which boosts demand and prices
The Serbian diaspora is a major player in the country's real estate market, driving up demand and prices.
Many Serbs living abroad send money back home, and these remittances have historically been a big part of Serbia's economy. This financial support means the diaspora has a strong economic influence, especially in real estate. In cities like Belgrade and even smaller towns, they hold a significant share of the market.
In some areas, up to 40% of properties are bought by Serbs from abroad. They often look for modern residential complexes with top-notch amenities, which are becoming more common in Serbia. This preference is shaping the types of properties being developed.
The real estate market in Serbia has been growing, and diaspora investments are a big reason why. This growth has led to higher property prices, particularly in urban areas. Yet, compared to Western Europe, Serbia's property prices remain affordable, making it an attractive option for those looking to invest.
For the diaspora, buying property in Serbia is not just about investment; it's also about maintaining a connection to their roots. This emotional tie adds another layer to their purchasing decisions, further boosting demand.
As more Serbs abroad look to invest back home, the real estate market continues to evolve, with new developments catering to their tastes and preferences. This trend is likely to persist, keeping the market dynamic and competitive.
Sources: World Bank, Serbia Business, eKapija
2) Serbia’s central location in Europe makes it a key trade and business hub, increasing property demand
Serbia's prime spot in Europe has turned it into a key hub for trade and business, driving up property demand.
In recent years, Serbia has experienced a noticeable increase in Foreign Direct Investment (FDI), especially in the industrial real estate sector. This trend is expected to continue, with foreign investments anticipated in the hotel and housing sectors in 2025. Serbia's central position in the Balkans makes it a natural gateway for trade with both the European Union and other regional countries.
The country has secured bilateral free-trade agreements with major players like the EU, Eurasian Economic Union, Turkey, and the United Kingdom. These agreements make Serbia an attractive trade partner and a prime business location. Infrastructure development projects, such as the rapid development of road infrastructure, are accompanying the construction of industrial real estate.
This makes Serbia an appealing spot for logistics and manufacturing. Multinational companies are setting up shop in Serbia due to its excellent geostrategic position and access to the EU market, further driving the demand for commercial real estate. The ongoing infrastructure projects are not just about roads; they are about creating a seamless connection for businesses to thrive.
Serbia's strategic location in Europe makes it a hub for trade and business, boosting property demand. The country's central position in the Balkans facilitates trade with both the European Union and other regional countries. The country has concluded bilateral free-trade agreements with the EU, Eurasian Economic Union, Turkey, the United Kingdom, and North Ireland, among others.
These agreements enhance Serbia's attractiveness as a trade partner and business location. Infrastructure development projects, such as the rapid development of road infrastructure, are accompanying the construction of industrial real estate. This makes Serbia an attractive location for logistics and manufacturing. Additionally, multinational companies are establishing operations in Serbia due to its excellent geostrategic position and access to the EU market, further driving the demand for commercial real estate.
Sources: Trade.gov, Property Forum, RAS
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.
3) As Serbia moves closer to joining the EU, you can expect property values to rise
Serbia's path to EU membership is stirring excitement in the property market.
When countries like Poland and Croatia joined the EU, their real estate markets boomed. Serbia might be next in line for this kind of growth. As Serbia moves closer to EU integration, property values are expected to rise, making it a potentially lucrative time to invest.
Foreign investors are already taking notice. Since Serbia started its EU talks, there's been a noticeable uptick in foreign investment, especially in commercial real estate. Both local and international investors are eyeing office spaces and retail properties, signaling a bright future for property values.
Economic forecasts are also encouraging. The European Bank for Reconstruction and Development (EBRD) predicts that Serbia's GDP will grow by 4% by 2025. This economic boost is likely to positively impact various sectors, including real estate, further enhancing property values.
In Belgrade, the capital, there's a buzz around new developments. Areas like Savamala and Dorćol are becoming hotspots for investors, with trendy cafes and art spaces popping up. This urban renewal is a sign of the city's growing appeal and potential for property appreciation.
As Serbia continues its EU journey, the property market is poised for transformation. Investors looking for opportunities might find Serbia's evolving landscape particularly enticing, with the promise of rising property values as integration progresses.
Sources: Serbia Report 2024, Financial Mirror, EBRD News
4) With Serbia's growing film industry, there’s a rising demand for temporary housing from industry professionals
Serbia's film industry is booming, with investments in audio-visual content skyrocketing 130 times since 2010.
This surge is largely due to the Serbian government's smart incentives, like a 30% return on eligible costs for big projects and a 20% return for special-purpose films. These perks have turned Serbia into a hotspot for international filmmakers.
In 2023, the local box office saw a 27% jump in revenue compared to the previous year, thanks to hits like "Guardians of the Formula." This uptick is a clear sign of the industry's growing appeal.
Serbia's creative industries are thriving, contributing around 6.5% to the GDP and employing a significant chunk of the young, educated workforce. This boom is creating a demand for skilled film professionals.
With more film projects rolling in, there's a rising need for temporary housing for these professionals. This demand is reshaping the real estate market, offering new opportunities for property buyers.
Sources: Box Office Pro, UNESCO, Serbia Business
5) With tourism booming in Serbia, especially in Belgrade, you’ll find high demand for short-term rentals
Tourism in Serbia is booming, especially in vibrant cities like Belgrade.
In August 2024, Serbia welcomed 282,070 foreign tourists, marking an impressive 11.6% increase in arrivals. This surge highlights Serbia's growing charm as a travel hotspot. Belgrade, with its lively nightlife and rich history, is a major draw for these visitors.
Short-term rentals in Belgrade are thriving, with a median occupancy rate of 64% from 2023 to 2024. This steady demand is reflected in the 5,099 active Airbnb listings available as of September 2024, offering tourists a variety of options to choose from.
Tourists are willing to pay for the experience, with the average daily rate for rentals at $54. This price point underscores the high demand and the value visitors place on staying in the heart of the action.
Serbia's tourism revenue hit a record €1.6 billion in 2024, fueled by the influx of tourists drawn to the country's affordability and vibrant lifestyle. Belgrade's mix of culture, history, and modern amenities makes it a top choice for travelers.
Sources: Travel and Tour World, Airbtics, Relocation Serbia
From this video, we realize that the rise of tourism in Serbia, particularly in Belgrade, is increasing demand for short-term rentals. The video compares Belgrade's growth with other tourist destinations.
6) Serbia offers financial incentives for foreign real estate investors, making it an attractive option
The Serbian government is making real estate investment very appealing for foreign investors.
In recent years, Serbia has attracted EUR15.9 billion in Foreign Direct Investment, with a significant chunk going into real estate. This surge is largely due to the government's enticing incentives. For instance, they offer financial grants for creating jobs and exemptions from customs duties when importing eco-friendly equipment. These perks make Serbia a hot spot for investors looking to dive into the property market.
Another attractive feature is the ten-year corporate income tax holiday for major investments. This tax break is a big draw for those considering substantial financial commitments in Serbia. The government also provides special cash grants for both greenfield and brownfield projects, further enhancing the appeal of investing in Serbian real estate.
Buying property in Serbia has become much simpler for foreigners. The government has streamlined the property ownership process, ensuring clear timelines and straightforward steps for document submission. This efficiency in handling paperwork and approvals makes it easier for investors to secure their desired properties.
These efforts have not only boosted the real estate market but have also made Serbia a financially attractive destination for foreign investors. The combination of incentives and simplified processes is a winning formula for those looking to invest in the country.
Sources: Chambers Practice Guides, Statista, Wolf Theiss
We believe this video demonstrates the Serbian government's incentives for foreign real estate investors, outlining the financial benefits and ease of investment.
7) With Serbia's wine industry on the rise, you can expect more tourists and higher demand for nearby properties
Serbia's wine industry is experiencing a remarkable growth trajectory, especially in recent years.
In 2023, the market saw a 14.7% annual growth rate since 2019, with revenue hitting approximately €71 million. This boom is expected to continue, with projections suggesting revenue could reach around €80 million by 2028. The focus on quality over quantity has been crucial, as Serbian wines have snagged numerous awards in global competitions.
The number of wineries and vineyards in Serbia is on the rise, reflecting the industry's expansion and investment. In 2023, there were 338 hectares of planted vineyards, with more young vines yet to mature. This vineyard growth is matched by an increase in wineries, like the Matalj Winery, which has gained international recognition.
Wine tourism is now a major draw in Serbia, attracting thousands of tourists each year. Wineries such as Zvonko Bogdan and Aleksandrović have become popular spots, thanks to the development of wine routes and tours. Events like the Interfest International Wine Festival further promote wine culture, drawing both producers and visitors.
For those considering buying property in the country, the booming wine industry is a promising sign. The growth in wine tourism is boosting demand for nearby properties, making it an attractive investment opportunity.
With the wine industry thriving, Serbia is not just a place to enjoy a good glass of wine but also a potential hotspot for property investment. The increasing popularity of wine routes and festivals is enhancing the appeal of the region, making it a vibrant place to live or invest.
Sources: Serbia Wine Industry Outlook 2024-2028, Decanter, Vinopedia
In this video, we can see that Serbia's wine industry is attracting tourists, creating property demand in wine regions. The video features the town of Sremski Karlovci, showcasing its wine tourism opportunities.
8) Serbia’s vibrant festivals and nightlife in Belgrade make it easy to find renters
Serbia's festivals and nightlife, especially in cities like Belgrade, are a huge draw for visitors worldwide.
Take the EXIT Festival, for example, which in 2023 attracted over 200,000 visitors from 120 countries. This surge of tourists not only boosts the local economy but also puts Serbia on the global tourism map. The festival's popularity is a testament to Serbia's vibrant cultural scene, making it a hotspot for international travelers.
Belgrade's nightlife is another major attraction, particularly in the Savamala district, which has become a cultural and entertainment hub. This area is buzzing with energy, offering a mix of trendy bars, clubs, and art spaces. It's no wonder that young tourists and locals flock here, seeking a taste of the city's dynamic atmosphere.
The demand for accommodations in Belgrade is on the rise, thanks to the influx of international visitors. In August 2024, there was an 11.6% increase in foreign tourist arrivals, totaling 282,070 visitors. This growth is mirrored in the rising number of overnight stays by foreign tourists, highlighting the city's appeal as a travel destination.
Belgrade's international recognition, such as being rated as one of the top ten most inspiring places by The Guardian, further enhances its allure. This kind of attention not only attracts more visitors but also encourages investment in the hospitality sector, leading to a variety of hotels and short-term rentals popping up to meet the demand.
With its lively festivals and bustling nightlife, Serbia, particularly Belgrade, is becoming a must-visit destination. The city's ability to draw in crowds from all over the world is a testament to its unique charm and vibrant cultural offerings.
Sources: EXIT Festival Research, Adventourely, Travel and Tour World
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Serbia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) In Serbia, you’ll enjoy higher net returns thanks to low property taxes compared to other European countries
Serbia's property taxes are among the lowest in Europe, making it a hotspot for real estate investors.
In 2023 and 2024, Serbia's property tax rate was just 0.58% of the private capital stock, which is significantly lower than in many other European countries. This low rate is a major draw for investors looking to maximize their returns.
According to Deloitte's Property Index 2024, Serbia not only boasts low property taxes but also some of the lowest average transaction prices for new dwellings in Europe. This means investors can enjoy lower operational costs, which translates to higher net returns.
Financial experts often highlight that countries with low property taxes, like Serbia, allow investors to retain more of their rental income. This results in higher gross rental yields, making Serbia an attractive option for foreign investors.
The World Bank's Serbia Policy Notes emphasize the country's efforts to create a favorable business environment through low taxes. This strategy has been successful in drawing in foreign investors who are keen on maximizing their profits.
Sources: Tax Foundation, Deloitte, World Bank
10) Serbia’s booming IT sector is drawing in young professionals, increasing the demand for housing
The IT sector in Serbia is booming, with exports hitting €1.9 billion in 2024, a 19% jump from the previous year.
Big names like Microsoft and Google have set up shop here, creating a magnet for young professionals eager to dive into tech. The Serbian government is also in on the action, building science and technology parks to support this growth, offering cutting-edge facilities for innovative businesses.
Serbia is not just attracting local talent; it's pulling in foreign IT professionals and digital nomads too. This influx shows that Serbia is becoming a hotspot for young tech enthusiasts. These professionals often prefer city life, which is why rental demand is soaring in Belgrade and Novi Sad.
Young professionals are drawn to Serbia's vibrant tech scene, which is rapidly expanding. The country's tech ecosystem is becoming a preferred destination, offering a dynamic environment for growth and innovation.
Urban areas are buzzing with activity, thanks to the growing number of tech-savvy individuals. This trend is reshaping the housing market, with more people looking for places to live in bustling city centers.
With the IT sector's rapid expansion, Serbia is positioning itself as a key player in the tech world. This growth is not only creating job opportunities but also transforming the real estate landscape, making it an exciting time for potential property buyers.
Sources: Intellinews, EBRD, Esteri, Adriahost
11) With Serbia’s vibrant culture and festivals, you’ll find plenty of tourists looking to rent properties
Serbia's vibrant cultural heritage and festivals are drawing more tourists, boosting the demand for rental properties.
In 2023, Belgrade welcomed 1.38 million visitors, a significant 17% increase from the previous year. This surge was largely fueled by international tourists, with nearly 1.19 million coming from abroad, marking a 21% jump from 2022. The city's lively atmosphere and rich history make it a top destination for travelers seeking unique experiences.
Events like the EXIT Festival and the Guca Trumpet Festival are key attractions, pulling in crowds from all over the world. While exact attendance numbers for 2023 and 2024 aren't available, these festivals are known for their massive draw, showcasing Serbia's cultural vibrancy and boosting the demand for short-term rentals during these periods.
During festival seasons, short-term rental occupancy rates soar, highlighting the impact of these cultural events. Property owners often report high rental yields during these times, a testament to the clear demand for accommodations. This trend is echoed by property owners who have successfully invested in rental properties, capitalizing on the influx of tourists.
For those considering buying property in Serbia, the thriving tourism scene offers promising opportunities. The consistent influx of visitors, especially during festival seasons, ensures a steady demand for rentals. This makes investing in Serbian real estate an attractive option for those looking to tap into the country's growing tourism market.
Sources: Tourism in Serbia - Wikipedia, Art and culture, an investment for Serbia's future, Serbia's Tourism Boom in 2024, Belgrade's Tourism Booms with Over 1.3 Million Visitors in 2023
This video demonstrates how Serbia's rich cultural heritage and festivals drive tourism and increase property demand. It showcases cultural events and historic landmarks in Negotin and beyond.
12) Serbia’s push for digital transformation is drawing tech workers who need places to live
The Serbian government is heavily invested in digital transformation to attract tech workers who need housing.
Since 2017, Serbia has been pouring resources into e-government and digital services to streamline public services. This isn't just about convenience; it's a strategic move to lure tech companies and their employees. With a focus on improving digital infrastructure, Serbia is positioning itself as a tech-friendly nation.
Belgrade and Novi Sad are now buzzing with tech startups, thanks to the government's active support. By offering incentives and better infrastructure, Serbia has created a vibrant ecosystem that draws tech talent and investors globally. This growth is not just limited to these cities but is spreading across the country.
Tech parks and innovation hubs are popping up in various regions, providing the necessary infrastructure and support for startups. These hubs make Serbia an appealing destination for tech professionals looking for a supportive environment. As these workers flock to urban areas, the demand for housing is naturally on the rise.
With more tech workers moving in, the housing market is seeing a surge in demand. This influx is creating opportunities for property buyers, especially in urban centers where tech companies are setting up shop. The government's focus on digital transformation is not just about tech; it's reshaping the real estate landscape too.
For anyone considering buying property in Serbia, now might be the time. The government's efforts in digital transformation are not only attracting tech talent but also driving up the need for housing. This trend is likely to continue as Serbia cements its place as a tech hub.
Sources: Startup Ecosystem Development Strategy, World Bank Blog, Microsoft News
13) The growing startup scene means more entrepreneurs are looking for housing
Serbia's startup scene is booming, especially in Belgrade and Novi Sad.
In recent years, these cities have become tech hotspots, with their ecosystems valued at $911 million from mid-2021 to the end of 2023. This growth is attracting more entrepreneurs to set up shop in Serbia. The presence of big players like Microsoft, which has been in Serbia for years, is a testament to the country's potential. They contribute to advanced tech development and employ hundreds, making Serbia a magnet for tech talent.
Foreign investments are pouring in, with the European Bank for Reconstruction and Development focusing on private-sector competitiveness and sustainable infrastructure. This influx of capital makes Serbia an attractive destination for entrepreneurs looking to start or expand their businesses. The Serbian government is also playing a crucial role by implementing strategies to boost the startup scene, aiming to significantly increase the number of startups by 2025.
Government support includes improving infrastructure, offering educational programs, and enhancing financing mechanisms for startups. This creates a conducive environment for entrepreneurs who need a supportive ecosystem to thrive. As a result, the demand for rental properties in tech hubs like Belgrade and Novi Sad is on the rise, driven by the influx of entrepreneurs and tech talent.
The increase in co-working spaces in these areas further supports this trend, indicating a thriving entrepreneurial environment. This vibrant community attracts both local and international talent, making Serbia a hotspot for innovation. The growing startup scene is not just about tech; it's about creating a dynamic environment where new ideas can flourish.
Sources: Belgrade and Novi Sad's Tech Ecosystem By the Numbers, Financial Times Special Report: Investing in Serbia, EBRD Forecasts Accelerating Growth for Serbia in 2024
14) With healthcare improving, Serbia is becoming a more appealing place to live and invest
Serbia's healthcare system is on the rise, making it an appealing spot for living and investing.
In recent years, the Serbian government has been pouring resources into healthcare, with 12 million euros earmarked for modernizing labs in cities like Belgrade, Nis, and Kragujevac. This investment isn't just about new buildings; it's about bringing in cutting-edge tech, including artificial intelligence, to digitize these facilities.
Medical technology in Serbia is also seeing a boost. The market for medical equipment is expanding, which means more advanced diagnostic tools like MRIs and scanners are becoming available. The Ministry of Health is keen on Public-Private Partnerships to upgrade medical centers, showing a real push towards better medical tech.
International partnerships are a big part of this progress. The UAE is looking at ways to team up with Serbia to enhance health technology and bring in innovative healthcare solutions. This kind of collaboration is all about improving health services quality and making the healthcare system stronger.
These efforts are not just about better equipment; they're about creating a healthcare environment that attracts international interest and investment. With these advancements, Serbia is positioning itself as a hub for healthcare innovation, drawing in both investors and new residents.
For anyone considering a move or investment in Serbia, these healthcare improvements are a significant factor. The country's commitment to enhancing its healthcare infrastructure and technology is a clear sign of its potential as a thriving place to live and invest.
Sources: UNDP Serbia, Export.gov, BioSpectrum Asia
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Serbia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
15) With new highways and railways, Serbia’s infrastructure boost increases property values
Serbia's infrastructure improvements are boosting property values significantly.
With a hefty €7.12 billion investment from 2024 to 2027, the Serbian government is transforming the country's transport infrastructure. This investment is not just about building roads; it's about making travel more reliable and areas more accessible, which is a big draw for potential property buyers. Imagine being able to zip across the country on new highways, making weekend getaways or daily commutes a breeze.
Take the Morava Corridor Motorway, for example. This major highway project connects Central Serbia with key European corridors, enhancing regional connectivity. By the end of 2024, Serbia's highway network was set to expand with new routes like the one linking Ĺ abac and Loznica, expected to be ready by the end of 2025. These improvements mean easier and faster commutes, a huge plus for anyone considering buying property in these newly connected areas.
But it's not just about roads. Serbia is also modernizing its railways, like the Serbia-Bosnia rail project. By boosting train speeds and upgrading signaling devices, these projects make regions more appealing for residential and commercial property investments. This kind of development often leads to rising property prices, as seen in the growth of Serbia's construction sector, which hit €5.2 billion in 2022.
These infrastructure projects are not just about convenience; they're about transforming the way people live and work in Serbia. With better connectivity, areas that were once considered remote are now within easy reach, making them attractive options for property buyers. This trend is particularly notable in regions where new highways and railways are being developed, offering a fresh perspective on property investment opportunities.
Sources: World Highways, ENKA, Trade.gov, Roncucci & Partners
16) Serbia’s stunning mountains and rivers make it a top choice for nature lovers seeking vacation homes
Serbia's stunning landscapes are drawing in nature enthusiasts eager to find the perfect vacation home.
In recent years, Serbia has become a hotspot for tourists, with over 4 million visitors in 2023, including more than 2 million from abroad. This surge in international interest highlights the allure of Serbia's natural beauty, especially its mountains and rivers.
The Tara and Kopaonik Mountains are favorites among hikers and campers, making them ideal spots for vacation homes. As these areas gain popularity, property sales are expected to rise, with more people wanting to connect with nature.
Serbia's eco-tourism and adventure tourism are thriving, thanks to its dense forests and wildlife. Activities like hiking, skiing, and exploring caves and canyons offer plenty of adventure opportunities, attracting those eager to enjoy the great outdoors.
Media coverage and social media trends are boosting Serbia's appeal. Stunning images and videos of places like Tara National Park and Uvac Canyon are circulating widely, drawing attention to these natural wonders and encouraging more visitors to explore.
Sources: Margistar, TISC, Travel and Tour World
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.