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What will happen in Serbia’s real estate market? Will prices go up or down? Is Belgrade still a hotspot for foreign investors? How is Serbia’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Serbia, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Serbia’s home prices will grow moderately as the economy stabilizes
Serbia's residential real estate market is set for moderate growth as the economy finds its footing.
With the economy on the upswing, Serbia's GDP is expected to rise from 2.5% in 2023 to 4% by 2025. This kind of growth usually means more jobs and better paychecks, which naturally boosts the demand for homes. Imagine more people with stable incomes looking to buy their first house or upgrade to a bigger one. It's a cycle that feeds into itself, creating a exciting real estate market.
Foreign investors are also showing a lot of love for Serbia. In 2023, the country pulled in $4.5 billion in foreign direct investment (FDI), and this trend is holding strong into 2024. When investors pour money into a country, it often leads to new development projects and better infrastructure. This makes the real estate scene even more appealing, as people are drawn to areas with modern amenities and conveniences.
The Serbian government isn't sitting on its hands either. They're rolling out initiatives to boost housing and infrastructure. By focusing on making the private sector more competitive and building sustainable infrastructure, they're setting the stage for real estate to thrive. Plus, with easier access to mortgage financing, people feel more confident about buying homes, which can only mean good things for the market.
All these factors combined create a perfect storm for growth in the residential real estate sector. As the economy stabilizes, the demand for housing is likely to rise, driven by both local buyers and foreign investors. The government's proactive stance on development and financing is the cherry on top, making Serbia an attractive spot for property investment.
Sources: EBRD, CEIC Data, Lloyds Bank Trade
2) More foreign buyers will invest in Serbia’s affordable real estate compared to Western Europe
Foreign buyers are eyeing Serbia for its affordable real estate compared to Western Europe.
In Belgrade, you can snag an apartment for about 2,000 euros per square meter in the city center, while prices drop to 1,000-1,400 euros on the outskirts. This is a steal compared to major Western European cities, making Serbia a budget-friendly choice for property hunters. The charm of Belgrade, with its vibrant culture and history, adds to the appeal, offering a unique blend of old-world charm and modern living.
Serbia's economy has been on a roll, showing impressive resilience. From 2020 to 2023, the country saw a cumulative real GDP growth of around 12%. This economic upswing, coupled with record foreign direct investment, has made Serbia a hotspot for investors. The local job market is also thriving, with rising employment and wages, which further boosts investor confidence.
Despite global challenges like the COVID-19 pandemic, Serbia's real estate market has remained stable and even grown. This stability is a big draw for foreign investors looking for reliable markets. The country's strategic location in Europe and its ongoing infrastructure development projects are additional factors that make it an attractive investment destination.
For those considering a move, Serbia offers not just affordability but also a rich cultural experience. The local lifestyle, with its mix of traditional and modern influences, provides a unique living experience. Plus, the cost of living is generally lower than in Western Europe, making it an appealing option for those looking to stretch their budget further.
With its combination of economic growth, affordable real estate, and cultural richness, Serbia is becoming a top choice for foreign property buyers. The trend is clear: more and more investors are recognizing the potential of this Eastern European gem.
Sources: National Bank of Serbia, Office Rent Info, EBRD
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.
3) Serbian real estate will be affected as more Serbians buy vacation homes in Montenegro's coastal areas
The coastal areas of Montenegro have become a hot spot for property investment, with prices soaring by 49.1% from 2023 to 2024.
In places like Budva, Kotor, and Tivat, the average price per square meter jumped from €1,413 to €2,107. This surge is catching the eye of investors, especially from Serbia, who are eager to tap into these high-value opportunities. The lack of legal barriers for foreigners buying property in Montenegro makes it even more appealing for Serbian buyers.
Serbian interest is also fueled by the growing tourism and rental yields in Montenegro. In 2023, rental yields ranged from 5% to 8.2%, offering a lucrative chance for rental income. For instance, in Budva, one-bedroom apartments rented for €350 to €850 per month, while two-bedroom units went for €500 to €1,000.
With more Serbians purchasing vacation homes in Montenegro, there's a ripple effect on the Serbian real estate market. As Serbian capital flows into Montenegrin properties, investment patterns within Serbia might shift, potentially altering demand back home.
Foreign direct investment in Montenegrin real estate rose by 5.41% to €296.81 million in the first eight months of 2023, with Serbia being a key player. This trend highlights the increasing cross-border investment activity between the two countries.
As Montenegro's coastal allure continues to grow, Serbian investors are likely to keep their eyes on this market, potentially reshaping the real estate landscape in both nations.
Sources: Global Property Guide, Henley & Partners, Montenegro Real Estate, CMM Montenegro
4) Rental prices in university towns will rise as more students move in
Rental prices in university towns are set to rise as student numbers grow.
In Serbia, the student population is booming, with a gross enrollment ratio for tertiary education at 73.21% in 2023. This means more students are entering higher education, leading to a surge in housing demand. The University of Kragujevac, for instance, saw a rush for student accommodation as the 2023/24 academic year kicked off. Students aren't just eyeing on-campus housing; many are keen on off-campus living for more independence.
With limited housing options, the competition is fierce, and rental prices are climbing. The Statistical Office of the Republic of Serbia highlighted that over 209,825 students are enrolled in universities, mostly in state institutions. This large student body is putting immense pressure on the housing market, making it a landlord's market.
Even without specific historical rental data, the trend is clear: more students mean higher demand, and higher demand typically leads to increased rental prices. This is especially true in university towns where the influx of students is constant and growing.
For those considering buying property in these areas, it's worth noting that investing in student accommodation could be lucrative. As the student population continues to rise, so does the potential for rental income. University towns are becoming hotspots for property investment, driven by the ever-growing need for student housing.
In summary, the combination of a growing student population and limited housing options is a recipe for rising rental prices. If you're looking to invest, university towns in Serbia might just be the place to watch.
Sources: Trading Economics, University of Kragujevac, Statistical Office of the Republic of Serbia
In this video, we can see that rental prices in university towns rise as student populations grow, showcasing market dynamics.
5) Demand for short-term rentals will grow in tourist hotspots like Novi Sad
The demand for short-term rental properties in Novi Sad is on the rise, especially in tourist-heavy areas.
Novi Sad is buzzing with tourists, thanks to events like the 2023 EXIT Festival, which drew in over 200,000 visitors from 120 countries. This surge includes many first-time visitors, showing that the city is becoming a hot travel spot. Since 2013, tourist arrivals in Serbia have doubled, and overnight stays are up, meaning more people are looking for places to stay.
The city is a hub for international events and festivals, which not only boost the local economy but also attract more tourists. The Serbian government is actively promoting tourism, and with better transportation infrastructure, Novi Sad is now more accessible and appealing to visitors. This makes short-term rentals even more attractive.
Novi Sad's charm as a cultural and historical destination is growing, with more investment pouring into the hospitality and tourism sectors. New attractions and amenities are popping up, and social media is buzzing with posts about Novi Sad as a must-visit place. This trend is likely to keep pushing up the demand for short-term rentals.
With all these developments, Novi Sad is not just a place to visit but a place to experience. The city's vibrant atmosphere, combined with its rich history and culture, makes it a top choice for travelers looking for unique experiences. This is why short-term rental properties are becoming increasingly popular.
As Novi Sad continues to evolve, the demand for short-term rentals will likely keep climbing. The city's blend of tradition and modernity, along with its strategic location, makes it a prime spot for tourists and investors alike.
Sources: EXIT Festival, Serbia Business, Novi Sad Travel
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6) Demand for retirement-friendly housing will grow as the population ages
Serbia's population is getting older, with over 20% aged 65 and above in 2023.
As of 2024, the median age in Serbia is 44.1 years, showing a clear demographic shift. People are living longer, and by 2050, life expectancy is expected to surpass 80 years. This means more time spent in retirement, so there's a growing need for housing that suits retirees.
The demand for healthcare and assisted living is rising, driven by the aging population and more chronic diseases. This trend indicates that older adults are seeking living arrangements with healthcare services, making retirement-friendly housing more appealing.
Government reports and international trends emphasize the need for age-friendly infrastructure. The OECD highlights the importance of developing communities that cater to the elderly, which includes retirement-friendly housing options. This aligns with the growing market for specialized care and healthcare services.
Real estate development is shifting towards senior housing, reflecting the demand for age-appropriate living spaces. The inpatient care market is expected to grow significantly, driven by the aging population. This suggests a strong market for retirement-friendly housing that offers healthcare services.
In Serbia, the focus is on creating environments that support the elderly, with specialized care and healthcare services becoming more prevalent. This trend is shaping the future of real estate, making it a promising area for investment.
Sources: Serbia Demographics 2024, Life Expectancy in Serbia, Inpatient Care Market in Serbia, Demographic Change in Cities, Population Ages 65 and Above in Serbia
7) Demand for energy-efficient homes will grow due to stricter environmental regulations
Stricter environmental regulations are set to boost the demand for energy-efficient homes in Serbia.
The Serbian government is making it easier for people to upgrade their homes with energy-efficient features by offering substantial subsidies. These incentives cover a big chunk of the costs, making it more affordable for homeowners to invest in energy-saving renovations. This financial support is a key driver in increasing the demand for such homes.
Energy costs are on the rise, and this is making people more aware of their energy usage. In 2023, Serbia experienced a reduction in gas consumption, signaling a shift towards more sustainable energy practices. As prices continue to climb, more people are likely to look for homes that help them cut down on these expenses, further fueling the demand for energy-efficient properties.
Climate change awareness is growing, and it's changing what people want in a home. With more discussions and media coverage on the topic, there's a noticeable shift towards sustainable living options. This isn't just happening in Serbia; it's part of a global trend that's influencing local market preferences.
In Serbia, the push for energy-efficient homes is also supported by local governments securing funds for renovations. This local initiative aligns with the broader international movement towards sustainability, making energy-efficient homes more appealing to buyers.
As these factors come together, the demand for energy-efficient homes in Serbia is expected to rise, driven by both economic incentives and a growing desire for sustainable living. Energy-efficient homes are becoming a smart choice for those looking to save on costs and reduce their environmental impact.
Sources: EBRD, CE Energy News, Statt.rs
8) Demand for modern apartments in cities will grow as young professionals move in
Young professionals are flocking to Serbia's urban centers for better jobs and a lively lifestyle.
In places like Northern Serbia and the Beogradski region, the average age of newcomers is around 35, showing a clear trend of young talent moving to cities. This shift is tied to the booming job market, especially in tech and service sectors, which are magnets for young professionals.
The Serbian government is making cities more appealing by investing in projects like the Belgrade Metro, enhancing public transport to attract young professionals. This has led to a rise in apartment sales in cities such as Belgrade and Novi Sad, where modern amenities are in high demand.
There's a noticeable growth in the Build-to-Rent sector, with thousands of apartments available to meet the needs of young professionals. These properties offer the modern lifestyle features that this demographic craves.
Surveys show that young professionals prefer living close to work and social spots, which is driving the urban living trend. The rise of co-working spaces and remote work hubs in new residential projects is a testament to this, offering the flexibility and convenience they seek.
Sources: Migrants & Refugees, World Bank, CEE Legal Matters, Knight Frank
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.
9) Demand for eco-friendly homes in Serbia will grow as people become more environmentally conscious
Serbia is seeing a boom in eco-friendly home construction.
Since 2010, Serbia has embraced green building certifications like LEED and BREEAM, showing a strong commitment to sustainable construction practices. These certifications are not just about improving urban landscapes; they are part of a broader effort to tackle global climate change. The Serbian government is also on board, pushing for greener building methods through its Low-Carbon Development Strategy for 2023-2030. This plan aims to cut greenhouse gas emissions by 33.3% by 2030, compared to 1990 levels, making eco-friendly homes even more attractive to buyers.
Government incentives are a big draw for those considering eco-friendly homes. By promoting renewable energy and energy-efficient practices, the government is making it easier and more appealing for people to choose sustainable living options. This is part of a larger trend as Serbia aligns with EU climate targets, which is influencing local consumer behavior.
The media in Serbia is also playing a crucial role in this shift. With more articles and discussions about sustainable living and green architecture, people are becoming more aware and interested in eco-friendly homes. This increased media focus is helping to drive demand, as more people see the benefits of living in a home that is both good for the environment and cost-effective in the long run.
International trends towards sustainable living are also making waves in Serbia. As the country aligns with EU climate targets, the demand for eco-friendly homes is expected to rise. People are not just looking for a place to live; they want homes that reflect their values and contribute to a healthier planet.
With all these factors at play, it's clear that the demand for eco-friendly homes in Serbia is set to grow. As environmental awareness continues to rise, more people will be looking for homes that offer both comfort and sustainability.
Sources: Low-Carbon Development Strategy of the Republic of Serbia, Constructive Voices
10) More investors will be drawn to Kragujevac as its automotive industry and job market grow
Kragujevac is quickly becoming a hotspot for the automotive industry.
With the arrival of new automotive plants, the city has seen a boost in employment. For instance, Stellantis started producing electric cars in Kragujevac in 2024, which has opened up numerous job opportunities. This development is not just about cars; it's about creating a thriving job market that attracts people from all over.
Foreign investors are taking notice, too. The Serbian automotive sector is buzzing with activity, and Stellantis has poured EUR 190 million into electric car production in Kragujevac. This kind of investment shows that international companies see real potential in the city, making it a promising place for future growth.
The Serbian government is also playing its part by offering incentives to lure automotive companies to Kragujevac. A notable agreement between the Ministry of Economy of Serbia and FCA Serbia included a EUR 48 million investment from the government. This move is designed to make the city even more attractive to investors, ensuring a steady flow of business and economic activity.
For those considering buying property in Kragujevac, these developments mean more than just economic growth. The city's transformation into an automotive hub is likely to lead to increased demand for housing and infrastructure, making it a potentially lucrative investment opportunity.
As the automotive industry continues to expand, Kragujevac is poised to become a key player in the region. With new job opportunities and significant investments, the city is on a path to becoming a major center for innovation and economic development.
Sources: Balkan Green Energy News, IDEA Lux
11) Virtual reality tours will become common in property listings, altering how buyers view homes
Virtual reality tours are revolutionizing the real estate market, and they're becoming a must-have feature for property listings.
Back in 2023 and 2024, over half of adults had already tried a virtual tour, and a whopping 67% of home buyers wanted them when checking out properties. This trend is only growing, making VR tours a standard part of the home-buying process.
Why the shift? It's all about what buyers want. Listings with virtual tours get 87% more views, and people spend more time on these sites. This shows that buyers see real value in virtual tours, pushing real estate agencies to keep up with the demand.
Thanks to tech advancements, VR is now more accessible and affordable, which is key for its widespread use. As the tech gets better, real estate agencies find it easier to offer VR tours, giving them a leg up in the competitive market.
Take Serbia, for example. Real estate agencies there are already offering VR tours, showing they're ahead of the curve in adopting new tech.
With these changes, it's clear that virtual reality tours are becoming a standard expectation in property listings, transforming how buyers view homes.
Sources: Times Property, PhotoUp, Virtual Properties Realty
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12) Eco-friendly neighborhoods will become more attractive due to green urban planning initiatives
In Serbia, green initiatives in urban planning are making eco-friendly neighborhoods more appealing.
Thanks to increased government incentives, more green building projects are popping up. Since 2010, when the first building registered for LEED certification, there's been a noticeable rise in certified green buildings. This trend shows a growing interest in eco-friendly construction.
People are leaning towards sustainable living spaces, and consumer surveys back this up. The media is also playing a big role by highlighting the benefits of green neighborhoods, which boosts public interest in sustainable urban development.
Serbia is putting its money where its mouth is, with 4.45% of the 2025 budget earmarked for green projects. This includes investments in renewable energy and green initiatives, showing a strong commitment to eco-friendly growth.
Urban planning policies are also stepping up, with a focus on green spaces and sustainable transport. This is part of Serbia’s Sustainable Urban Development Strategy, which was approved in 2019.
All these efforts are making eco-friendly neighborhoods not just a trend, but a smart choice for future homeowners.
Sources: Colliers, World Bank Blogs, SeeNews
13) Smart home technology will become a major selling feature for new properties
In Serbia, smart home technology is becoming a must-have for new properties.
Homebuyers are increasingly drawn to the convenience and security that smart homes offer. About 70% of buyers in Serbia are actively seeking smart homes, making these features a hot topic in real estate listings. Imagine controlling your lights, thermostat, and security system all from your phone—it's no wonder these homes are in demand.
The younger crowd, especially those who are tech-savvy, are leading this trend. They want homes that are not just places to live but are equipped with the latest technology. Smart home features are now a key factor in their buying decisions, and this is reshaping the market.
Media in Serbia is also playing a role by highlighting the perks of smart homes, like energy efficiency and enhanced security. This coverage is making more people aware of the benefits, further boosting interest. Energy-efficient homes are not just good for the planet; they're also easier on the wallet.
As the market grows, it's expected to reach a volume of $242.9 million by 2029, with an annual growth rate of 11.44% from 2024 to 2029. This shows a strong and growing demand for smart home features among Serbian consumers.
Real estate agents are catching on, too. They're increasingly promoting smart home capabilities as a major selling point. It's becoming a key factor in how properties are marketed and sold.
Sources: Statista, Exploding Topics
14) Property demand in Novi Sad will rise as it gains recognition as a tech hub
Novi Sad is quickly becoming a magnet for tech companies, drawing in a wave of IT firms eager to set up shop.
Back in 2018, Serbia had around 2,300 IT companies, but by 2022, this number had surged to 3,500. This boom highlights a strong demand for tech talent and infrastructure, naturally leading to a higher demand for properties in the city. With more tech firms, the need for skilled professionals is skyrocketing, and these individuals will need places to live.
Top IT recruitment agencies like DevsData LLC and Gi Group are setting up in Novi Sad, signaling that more tech jobs are being created. This influx of professionals is further fueled by the increasing number of tech industry events and conferences hosted in the city, drawing in both talent and investors, which in turn boosts property demand.
The government is also playing a crucial role by supporting the tech ecosystem with initiatives like the Digital Serbia Initiative and the 2025-2030 Strategy for the Development of Artificial Intelligence. These efforts aim to foster economic growth and improve public services, creating an environment that encourages property demand.
Media coverage is shining a spotlight on Novi Sad as an emerging tech hub, attracting more professionals and businesses. This attention is a catalyst for property demand, as more people look to relocate to this burgeoning city.
With all these factors combined, it's clear that Novi Sad is on the rise, making it an attractive option for property buyers looking to invest in a city with a promising future.
Sources: Startup Genome, DevsData
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.