Is buying a property in Stari Grad a good investment?

Last updated on December 29, 2023

Yes, the analysis of Belgrade's property market is included in our pack

If you've explored the historical charm and Mediterranean allure of Stari Grad, you might consider making this part of Hvar your next destination for property investment.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Serbia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Stari Grad?

Stari Grad, often referred to as the Old Town, holds a special place in the hearts of property buyers looking at Belgrade.

What sets Stari Grad apart is its rich historical ambiance combined with urban convenience. This area, unlike newer developments in other parts of Belgrade, offers a unique blend of historical architecture and cultural heritage.

Think of walking down cobblestone streets, with each building narrating a story from the past. This charm is hard to find in modern real estate markets where the focus is often on contemporary design and amenities.

Now, when we compare Stari Grad to other areas in Belgrade, the contrast becomes quite evident. Newer districts like New Belgrade are known for their modern buildings and business centers, offering a more contemporary lifestyle.

In contrast, Stari Grad is like a time capsule, preserving the essence of old Belgrade. It's this nostalgia mixed with a lively cultural scene that started attracting more buyers and investors, especially in the last two decades.

The popularity of Stari Grad began to surge in the early 2000s. This was when Belgrade started gaining international attention as a vibrant and culturally rich city.

Stari Grad, being at the heart of this renaissance, naturally became a sought-after location. Whether this popularity will remain is a question often asked. Considering the trends, it seems likely.

The demand for properties in areas with historical and cultural significance rarely wanes, and Stari Grad is no exception. Its appeal is timeless, and as long as people value heritage and character in their living spaces, Stari Grad will continue to thrive.

Speaking of the people it attracts, Stari Grad has a magnetic pull for a diverse group. You'll find artists, historians, and culture enthusiasts drawn to its artistic vibe.

At the same time, it appeals to those who love being in the heart of the city yet cherish a sense of the past. It's not just about the buildings; it's about the stories they tell and the community they nurture.

People who buy property here are often looking for more than just a home; they're looking for a piece of history.

However, every rose has its thorns, and Stari Grad is no exception. One of the weaknesses of this area is the potential for higher maintenance costs. The very charm of its old buildings also means they might require more upkeep.

Additionally, being a bustling cultural hub, it might not offer the tranquility some residents seek. The streets can get crowded, and the nightlife vibrant, which might not be everyone's cup of tea.

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Why is Stari Grad a nice place to live?

Stari Grad stands out as a delightful place to live, thanks to its vibrant lifestyle and rich cultural tapestry.

Living in Stari Grad is like being in a living museum, where every street and building tells a story. You're not just residing in a city; you're part of its history. This area brims with cultural events, art exhibitions, and festivals, ensuring that there's always something exciting happening.

The expat community in Stari Grad is thriving. It's a melting pot of cultures, where expatriates from all over the world blend seamlessly with the locals.

This diversity creates a welcoming and inclusive atmosphere, making it easy for newcomers to feel at home. Expats often gather in popular cafes and bars, creating a sense of community and belonging.

In terms of living costs, Stari Grad, like any city center, can be on the pricier side. Housing and day-to-day expenses might be higher compared to other areas in Belgrade.

However, many find that the cost is justified by the lifestyle and amenities the area offers.

Safety is a priority in Stari Grad. The neighborhood is generally considered safe, with a strong sense of community and an active local police presence. This adds to the comfort of living in such a dynamic area.

Amenities and facilities in Stari Grad are top-notch. You have access to some of the best schools, like the International School of Belgrade, and healthcare facilities, including the Belgrade General Hospital. Shopping centers and local markets abound, offering a mix of international brands and local products.

The infrastructure in Stari Grad is well-developed. Roads are generally in good condition, utilities are reliable, and internet connectivity is excellent, catering to both residential and business needs.

Accessibility is another plus for Stari Grad. It's well-connected to other parts of Belgrade and major transport hubs like Nikola Tesla Airport. Whether you're commuting to work or traveling abroad, you'll find it convenient.

Public transportation options are plentiful. The area is served by a network of buses, trams, and trolleybuses, making it easy to navigate the city. This connectivity is not just about convenience; it's about being part of a larger, bustling city.

Living in Stari Grad offers a unique experience. It's a blend of the old and the new, where tradition meets modernity, and where a diverse community comes together to enjoy a rich, urban life.

How much does it cost to buy real estate in Stari Grad?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Serbia.

Buying a property in Stari Grad varies in cost depending on several factors, including the type of property and its location within the neighborhood.

In Stari Grad, you'll find a mix of residential properties ranging from apartments and houses to luxury villas. The area is known for its beautiful, historic architecture, which means many of the properties available are charming, older buildings.

However, there's also a growing trend of modern developments, blending the old-world charm with contemporary comforts.

Apartments, particularly those in well-maintained or renovated historical buildings, are in high demand in Stari Grad. This demand is driven by their unique character, central location, and the vibrant lifestyle the area offers.

Houses and luxury villas, while less common, are sought after by those looking for more space and privacy, often commanding higher prices.

In terms of price range, properties in Stari Grad can vary significantly. On average, prices per square meter can range from about €2,500 to €4,000 or more for premium properties. It's important to note that prices can fluctuate based on the property's condition, size, and exact location within the neighborhood.

Over recent years, property values in Stari Grad have shown an upward trend. This increase is partly due to the growing popularity of Belgrade as a destination for both tourism and business, making properties in central locations like Stari Grad more desirable. The blend of historical significance and modern amenities adds to this appeal.

Looking ahead, there are several factors that could influence property values in Stari Grad. Any upcoming developments or city planning changes, such as new infrastructure projects or renovation of historical areas, can significantly impact property prices.

For example, if a new commercial development or a public transport hub is announced, it could make the area more accessible and desirable, potentially driving up property values.

Predicting the real estate market's future in Stari Grad involves considering these developments, along with broader economic trends.

If Belgrade continues to grow as a cultural and economic hub, it's likely that demand for properties in central areas like Stari Grad will remain high. This could lead to a continued increase in property values, especially for well-located and well-maintained properties.

Factors indicating a potential increase in value include ongoing urban renewal projects, increased foreign investment in the city, and the continued appeal of living in a culturally rich and historically significant area.

However, it's important to remember that real estate markets can be unpredictable, and various factors, including global economic conditions, can influence property values.

Where is the best area to buy a property in Stari Grad?

Identifying the best area to buy a property in Stari Grad depends largely on what you're looking for in terms of atmosphere, property type, and budget.

Stari Grad, with its rich history and vibrant culture, offers a variety of experiences across its different parts.

One of the most sought-after areas in Stari Grad is the historic district near Knez Mihailova Street. This area is known for its lively atmosphere, with plenty of cafes, shops, and cultural sites.

Properties here are predominantly charming, old buildings, many of which have been renovated to add modern amenities while retaining their historic character. Due to its popularity and central location, prices in this area tend to be higher.

Another notable area is around Skadarlija, the bohemian quarter known for its traditional restaurants and cobblestone streets. The properties here offer a unique blend of old-world charm and artistic flair.

This area can be particularly appealing if you're drawn to a more bohemian lifestyle and enjoy being in the center of cultural activities.

For those looking for up-and-coming areas within Stari Grad, Dorćol is worth considering. It's becoming increasingly popular, especially among young professionals and artists.

The area offers a mix of traditional and modern properties, often at more affordable prices compared to the historic center. Dorćol maintains a quieter atmosphere while still being close to the city's main attractions.

If you prefer a quieter, more residential area, then the streets surrounding the Belgrade Fortress might be your best bet. This area offers a more peaceful living environment, away from the hustle and bustle, yet still within walking distance of the city center. Properties here vary from older, historical buildings to newer developments.

On the other hand, areas close to major tourist attractions or nightlife spots, while exciting, might not be advisable if you're seeking peace and quiet. These areas can be quite noisy, especially during the tourist season or on weekends.

Additionally, parking and traffic can be more challenging in these densely populated areas.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Serbia.

Area	Atmosphere	Property Types	Price Range
Knez Mihailova Street Area	Lively, Central, Cultural	Historic Buildings, Renovated Apartments	Higher
Skadarlija (Bohemian Quarter)	Artistic, Bohemian, Traditional	Charming Old Buildings	Moderate to High
Dorćol	Up-and-coming, Trendy, Diverse	Mix of Traditional and Modern	Moderate
Near Belgrade Fortress	Peaceful, Residential	Variety of Historical and Newer Developments	Moderate to High
Near Major Tourist Attractions/Nightlife	Noisy, Bustling	Varied	Varies

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Is there a strong rental demand in Stari Grad?

Stari Grad does indeed have a strong rental demand, characterized by a mix of both short-term and long-term rental needs.

This demand is shaped by the area's appeal to a diverse demographic.

Short-term rentals in Stari Grad are particularly popular among tourists and business travelers. Given its rich history, cultural significance, and central location, the area attracts a steady flow of visitors. Properties that are in high demand for short-term rentals are usually well-furnished apartments, often with one or two bedrooms.

These are typically located in the more vibrant parts of Stari Grad, like near Knez Mihailova Street or the bohemian quarter of Skadarlija, where guests can easily access local attractions, restaurants, and nightlife.

On the other hand, long-term rentals cater to a different market, primarily consisting of young professionals, expatriates, and sometimes students. These tenants often look for modern amenities, good internet connectivity, and proximity to workplaces or educational institutions.

For long-term rentals, areas like Dorćol are gaining popularity due to their more residential atmosphere yet close proximity to the city center.

In terms of amenities, features like secure parking, modern appliances, air conditioning, and a reliable internet connection are key to reducing vacancy. These amenities align with the needs and expectations of both short-term and long-term renters, enhancing the property's appeal and convenience.

Speaking of potential returns on investment, properties in Stari Grad can offer attractive yields, though this depends on several factors including the property's condition, location, and the type of rental.

For instance, well-maintained properties in prime locations like near Knez Mihailova Street or Skadarlija might yield higher returns due to their popularity with short-term renters. On average, you might expect a rental yield of around 4% to 6%, but again, this can vary.

Looking at the types of properties that are gaining more demand and could potentially offer better yields, modern apartments with contemporary fittings, especially those in historical buildings, are becoming increasingly popular.

These properties offer the charm of old Belgrade while providing the comforts that modern tenants seek.

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Is it easy to buy a property as foreigner in Stari Grad?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Serbia.

Buying a property as a foreigner in Stari Grad, Belgrade, is relatively straightforward, but there are certain nuances to consider.

The process, regulations, and risks can be different from those in other countries, so it's important to be well-informed.

Firstly, in Serbia, foreign buyers are generally allowed to purchase property, but there are some restrictions. For instance, foreigners may need to obtain approval from the Ministry of Justice, which is a formality in most cases. This process can add some time to the property buying journey.

The purchasing process in Stari Grad follows a standard procedure; finding a property, negotiating the price, signing a preliminary contract, paying a deposit, and then finalizing the deal with a public notary.

One unique aspect in Serbia is the importance of the 'Cadastral Certificate', which confirms the property's legal status and ensures there are no legal encumbrances on the property.

As for risks, the primary concerns include potential legal issues related to property rights and the condition of the property. In Serbia, particularly in areas like Stari Grad with many historic buildings, it's crucial to check the structural integrity and maintenance history of a property.

Additionally, understanding the local property market trends is important to ensure you're making a sound investment.

A common pitfall for foreign buyers in Serbia is navigating the legal and bureaucratic aspects of the property buying process. Understanding the implications of local tax laws or the specific requirements for property registration can be challenging.

Working with a local real estate agent or lawyer is highly advisable. They can provide invaluable guidance on the local market, help navigate the legal system, and assist in dealing with any language barriers.

A good agent or lawyer will ensure that all documents are in order and that you fully understand every step of the buying process.

Regarding exit strategies, property investors in Stari Grad typically consider either selling the property or renting it out. The rental market, especially for short-term lets to tourists or business visitors, can be lucrative.

However, if you plan to sell the property, it's important to be aware of the market conditions and property values in Stari Grad to time your sale effectively.