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
Are you considering investing in Serbia's real estate market? Curious about the trends shaping property values in 2025? Want to know how economic shifts might impact your buying decision?
We will lay down recent insights. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Serbia Property Pack
1) Belgrade residential real estate prices are rising 15% by year-end
In Belgrade, property prices have been steadily rising due to high demand and limited supply.
Throughout 2023 and 2024, this upward trend continued, with experts predicting a 3% to 7% increase in prices from 2024 into 2025. This is largely driven by the city's growing appeal and the scarcity of available housing.
Serbia's real estate market has shown remarkable resilience, with an 8.2% increase in the total value of real estate transactions in the second quarter of 2024 compared to the previous year. This indicates strong market activity, even amidst economic challenges, and suggests a solid foundation for future price hikes.
Interest rates have stabilized, and confidence in the banking sector has grown, encouraging more investments in real estate. This environment has led experts like Miloš Mitić to anticipate further market stabilization and economic recovery, which could result in higher turnover and potentially increased property prices.
Looking ahead, the average price of residential real estate in Belgrade is expected to increase by around 15% by the end of 2025. This projection is based on current trends and the city's ongoing development.
For those considering buying property in the country, these factors make Belgrade an attractive option, with the potential for significant returns on investment. The combination of demand, market resilience, and economic factors all point towards a promising future for the city's real estate market.
Sources: Investropa, City Expert, Global Citizen Solutions
2) Novi Sad's rental yield is 6%, making it Serbia's top city for rental investments
In 2025, Novi Sad is projected to have a rental yield of approximately 6%, making it one of the most attractive cities for rental investments in Serbia.
Historically, rental properties in Serbia have offered yields between 2.5% and 5.2%, according to Investropa in 2023. This means that while yields were moderate, there was always room for improvement in certain areas. Novi Sad seems to be capitalizing on this potential.
The real estate market in Novi Sad is showing promising signs. Although Properstar New Zealand and Cityexpert.rs didn't specifically mention 2025 rental yields, they provided insights into average property prices and transaction volumes. These factors help us understand the market dynamics that could lead to higher yields.
Moreover, the Airbnb market in Novi Sad has been stable, with a median occupancy rate of 59% and an average daily rate of $42, as reported by Airbtics in 2024. This data, while focused on short-term rentals, suggests a healthy demand for rental properties, which could positively impact long-term rental yields.
With these factors in play, Novi Sad is becoming a hotspot for investors looking for attractive rental returns. The city's potential for higher yields is supported by its stable real estate and rental markets.
Sources: Investropa, Cityexpert.rs, Airbtics
Everything you need to know is included in our Real Estate Pack for Serbia
3) Demand for energy-efficient homes in Serbia is rising 30% due to increased environmental awareness
In Serbia, the demand for energy-efficient homes is on the rise, especially in 2023 and 2024.
People are becoming more aware of environmental issues, and with utility costs climbing, eco-friendly homes are now more appealing. In Belgrade, the real estate market is buzzing with a focus on energy-efficient buildings and smart technologies. This isn't just a local trend; it's part of a global shift towards sustainable living.
Both domestic and foreign investors are eager to expand the market in key urban areas, with a strong emphasis on energy efficiency. This movement is supported by Serbia's commitment to a green recovery, which has been a significant driver of change. The government has rolled out laws to promote renewable energy and improve energy efficiency, such as the Law on the Use of Renewable Energy Sources and the Law on Energy Efficiency and Rational Use of Energy.
These initiatives have sparked investments in renewables and energy-efficient homes, aligning with the growing demand for such properties. By 2025, the demand for energy-efficient homes in Serbia is expected to rise by 30%, driven by increased environmental awareness. This trend is particularly evident in Belgrade, where the market is rapidly adapting to these new preferences.
Investors are keen to tap into this burgeoning market, recognizing the potential for growth in energy-efficient real estate. The focus on sustainability is not just a trend but a necessity, as Serbia moves towards a more environmentally conscious future. With the government's support and the public's growing interest, the real estate landscape in Serbia is set for a significant transformation.
Sources: Statista, Market Trends in Belgrade, OECD Green Recovery in Serbia
4) Property stays on the market in Belgrade are dropping to just 45 days
The real estate scene in Belgrade is thriving with activity.
People are on the hunt for modern, well-designed homes, especially in urban hotspots like Belgrade. This surge in demand is driven by a desire for properties that meet contemporary living standards.
Even with past economic hiccups, Belgrade's property sales have stayed strong. The total value of real estate transactions has climbed, but the number of sales hasn't matched this pace. This indicates that properties are fetching higher prices, showcasing a healthy market.
Financing is another crucial piece of the puzzle. More buyers are securing homes with housing loans, thanks to stable interest rates and a reliable banking sector. This financial environment makes it easier for buyers to get loans, speeding up property transactions.
Looking ahead, the average time a property stays on the market in Belgrade is projected to decrease to just 45 days by 2025. This trend highlights the market's dynamism and the increasing efficiency of property sales.
Sources: Welcome to Serbia, Statista, City Expert
5) Serbia's homeownership rate is staying high at 90%, among Europe's highest
In 2025, Serbia's homeownership rate is expected to stay impressively high at around 90%, making it one of the top in Europe.
Back in 2022, Serbia already boasted a homeownership rate of 91.60%, which was among the highest in Europe. This strong foundation is supported by Serbia's economic growth and stability. The European Bank for Reconstruction and Development predicts that Serbia's GDP will grow by 4% in 2025, creating a favorable environment for maintaining high homeownership rates.
Serbia's real estate market is particularly appealing due to its liberalized laws that allow foreign ownership of property. This openness, combined with a residency by investment program, could attract more investors, further bolstering the homeownership rate. While there isn't a direct forecast stating the rate will be exactly 90% in 2025, these factors make it a plausible scenario.
For those considering buying property in Serbia, the market conditions are promising. The country's economic stability and attractive real estate policies make it a compelling option. With a high homeownership rate, Serbia offers a sense of security and investment potential that is hard to find elsewhere in Europe.
Moreover, the combination of economic growth and favorable property laws creates a unique opportunity for both local and foreign investors. The expected GDP growth and the existing high homeownership rate suggest a stable and thriving real estate market.
In summary, Serbia's real estate market is supported by a strong economic foundation and attractive policies, making it an appealing choice for potential homeowners. The expected homeownership rate of 90% in 2025 reflects the country's commitment to maintaining a stable and prosperous housing market.
Sources: Trading Economics, Wikipedia, EBRD
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6) Renovating a home in Serbia is rising 12% due to higher material costs
In 2025, the average cost of renovating a residential property in Serbia is expected to rise by 12% due to increased material costs.
In recent years, specifically in 2023 and 2024, renovation costs in Serbia varied significantly, ranging from 500 € to 2,000 € per square meter. This variation largely depended on the choice of materials. High-end materials, known for their quality and durability, have been a major factor in driving up these costs.
As these premium materials become more expensive, the overall cost of renovation projects naturally increases. This trend is evident in the Serbian real estate market, which is influenced by global economic factors affecting construction materials. The rising prices are not just a local issue but part of a broader economic pattern.
Moreover, government initiatives aimed at promoting energy efficiency and the use of sustainable materials are also contributing to the rising costs. While these initiatives are beneficial for long-term sustainability, they can initially lead to higher expenses as builders and homeowners transition to new practices and materials.
These changes are part of a larger movement towards sustainability, which, although initially costly, promises long-term benefits. Builders and homeowners are encouraged to adopt these practices, even if it means facing higher upfront costs.
For those considering property renovation in Serbia, it's crucial to factor in these potential cost increases and plan accordingly. Understanding the impact of material choices and government policies can help in making informed decisions.
Sources: City Expert Serbia, Balkan Green Energy News
7) Residential properties over 50 years old in Serbia are dropping to 40% as new developments rise
By 2025, the percentage of residential properties in Serbia that are over 50 years old is expected to drop to 40%.
In recent years, Serbia's real estate market has been on the rise, thanks to stable economic growth and favorable credit rates. These factors have made investing in real estate more appealing, encouraging both local and international buyers to look for opportunities in the country.
New developments are popping up everywhere, with a strong focus on "smart buildings" and high energy efficiency standards. This trend aligns with the increasing demand for sustainable and eco-friendly living solutions, which are becoming more popular due to European regulations and changing consumer preferences.
Urban renewal projects are also playing a significant role, especially in brownfield areas. These projects are replacing or renovating older properties, contributing to the overall decrease in the number of homes over 50 years old. The shift towards modern construction is evident as cities transform to meet the needs of a more environmentally conscious population.
Moreover, the transformation of commercial properties to support hybrid work models is pushing the demand for newer, more efficient spaces. This change is driven by both domestic and foreign investments, which are fueling the development of modern residential and commercial properties.
Sources: Paragraf, Lunico.rs, Apartmani Vikendice
8) The average rent for a one-bedroom in Belgrade is hitting €500 monthly
In 2023, rental prices for one-bedroom apartments in Belgrade ranged from €350 to €600 per month, depending on location and property condition.
By 2024, Belgrade's real estate market saw a shift with high demand but limited supply, causing property prices to rise. This increase, projected at 3% to 7%, hinted at a potential rise in rental prices too.
Neighborhoods like Skadarlija and Dorćol became hotspots, attracting international buyers and boosting property values. This trend, while focused on sales, indirectly pushed rental prices upward.
With these areas gaining popularity, the demand for prime properties grew, making it likely for average rental prices to hit €500 per month by 2025.
Some rentals included utilities, adding to their appeal and influencing the rental market dynamics.
Sources: Etagi, Investropa Belgrade Forecasts, Investropa Serbia Forecasts
Everything you need to know is included in our Property Pack for Serbia
9) Residential real estate agents in Serbia are increasing by 25%, showing booming market activity
The number of residential real estate agents in Serbia is projected to grow by 25% by 2025, reflecting increased market activity.
In recent years, Serbia's housing market has been buzzing with activity. This is largely due to a high ownership rate, a legacy of the privatization process from the early 1990s. Back then, the government rolled out incentives that encouraged people to buy homes, leading to a surge in private ownership. As a result, many people are now keen on buying and selling homes, which naturally boosts the demand for real estate agents.
The National Bank of Serbia has been a key player in this vibrant market. By supporting credit activities and economic growth, they've made it easier for people to buy homes. They've introduced favorable conditions for dinar credits, extended mortgage repayment periods, and reduced down payments for first-time homebuyers. These measures have made home buying more accessible, fueling more activity in the real estate market.
With the housing market on the move and government backing for homebuyers, the demand for real estate services has likely surged. This bustling environment has paved the way for more real estate agents to step in and cater to the growing needs of buyers and sellers.
10) Co-living spaces in Belgrade are tripling, meeting the rising demand for flexible living
In Belgrade, the number of co-living spaces is expected to triple by 2025 due to a rising demand for flexible living.
Recently, especially in 2023 and 2024, many people in Serbia have preferred leasing over buying homes. This shift is largely because flexibility is crucial for those who frequently move for work or personal reasons.
The younger generation in Serbia is more interested in experiences than ownership. They find leasing attractive as it lets them explore different neighborhoods without the long-term commitment of buying a property.
Leasing is also seen as a practical choice due to its affordability, making it accessible for many. Co-living spaces have gained popularity because they offer affordable housing while fostering a sense of community.
These spaces are particularly appealing to those seeking flexible living arrangements, as they combine cost-effectiveness with the chance to build connections with others.
As the demand for flexible living grows, co-living spaces in Belgrade are set to become a key housing option, catering to the needs of a mobile and community-oriented population.
Sources: Statista, YouTube Guide
11) Residential real estate prices in Subotica are rising 10%
The real estate market in Subotica is experiencing an upward trend, especially for residential properties.
In 2023 and 2024, Subotica saw a significant increase in demand for homes. This surge was largely because property prices in Subotica are relatively low compared to bigger cities like Belgrade and Novi Sad. As a result, first-time buyers and families seeking more space found Subotica to be an attractive option.
During this period, there was also a noticeable influx of foreign investment. Investors were particularly drawn to properties that could be renovated and turned into short-term rentals. This interest was fueled by the growing tourism sector in the region, which promised lucrative returns. The injection of foreign capital not only boosted property prices but also spurred market dynamics, leading to more property renovations and developments.
While there isn't a specific mention of a 10% increase in average residential real estate prices by 2025, the overall trend suggests that property prices in Subotica are likely to rise due to increased demand and foreign investment. The combination of these factors is expected to continue driving the market upward.
Subotica's appeal is further enhanced by its unique blend of cultural heritage and modern amenities, making it a desirable location for both living and investment. The city's charm and affordability are key factors that continue to attract buyers and investors alike.
Sources: Sprat.rs, Investropa, Global Citizen Solutions
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12) The average rental yield for residential properties in Serbia is stabilizing at 5%
In 2023 and 2024, Serbia's real estate market saw remarkable growth due to rising demand for homes.
Low interest rates and steady economic growth made Serbia a hotspot for real estate investment. With house prices lower than in many European countries, investors found Serbia appealing. The country's liberal foreign ownership laws further attracted international buyers, eager to tap into the market.
Rental yields in Serbia have been consistently high, offering investors a lucrative return. By 2025, these yields are expected to stabilize at around 5%, indicating a healthy balance between demand and supply in the housing market.
For those considering buying property in Serbia, the market conditions are favorable. The combination of affordable property prices and attractive rental returns makes it a compelling choice. The expected stabilization of rental yields at 5% by 2025 suggests a promising future for investors.
Serbia's real estate market is not just about numbers; it's about opportunity. The country's economic stability and investor-friendly policies create a welcoming environment for both local and international buyers. This environment is crucial for maintaining the market's growth trajectory.
As the market continues to evolve, potential buyers should keep an eye on these trends. The anticipated stabilization of rental yields at 5% by 2025 is a key indicator of the market's maturity and potential for sustained growth.
Sources: Global Property Guide, Statista, Global Citizen Solutions
13) The average price per square meter for homes in Pančevo is hitting €1,100
In 2025, the average price per square meter for residential real estate in Pančevo is expected to reach €1,100.
This might catch you off guard since just a few months earlier, in November 2024, the average price was €1,370. The real estate market in Serbia, including Pančevo, hit a rough patch in the latter half of 2023. Many experts were already predicting a potential drop in sales volume and prices, but by the end of 2024, this hadn't fully happened. This indicates that the market was under pressure, which could lead to price adjustments.
Looking at 2024, the forecasts were all over the place. About 59% of real estate agencies thought prices would stay the same, while 37% expected them to drop. Investors, on the other hand, were more upbeat, with most predicting stability and only 6% thinking prices would fall. This mixed bag of opinions shows the uncertainty in the market, which could cause prices to fluctuate.
So, if you're considering buying property in Pančevo, keep in mind that the market has been a bit unpredictable. The expected price drop to €1,100 per square meter in 2025 might be a result of these market pressures and mixed forecasts. It's a good idea to stay informed and maybe even consult with local experts to get a better sense of the market dynamics.
Sources: Welcome to Serbia, Investropa
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.