The real estate market in Serbia is still hot

While the real estate market prices are cooling down around the world, the situation is completely different in Serbia.

Source: RTS
Foto: shutterstock, Bildagentur Zoonar GmbH
Foto: shutterstock, Bildagentur Zoonar GmbH

As long as demand is greater than supply, apartment prices will go up, architect Branka Bošnjak tells RTS and reveals when prices are expected to start declining.

The price of real estate in Serbia has been constantly rising for the last eight years. In some cities, the price increase per square meter is evident on a monthly basis. In addition to buyers from Serbia, there are more and more foreigners who decide to invest money and purchase real estate in Serbia.

In the last few years, we have witnessed the expansion of construction, primarily housing, which is great for the economy of every country because it generates overall economic development.

"As for the prices of those same apartments, as an economic category, the ratio of supply and demand is crucial. Since there has been a very large influx of new residents to Belgrade in recent years, demand is also increasing, but the economic crisis also brings the idea of investing in real estate. The price of real estate is affected by such high prices which were generated by the construction of luxury settlements. Those luxury settlements gave enormous prices, which spilled over to the prices in the central city municipalities, affecting a price incline in the suburban settlements as well," architect Branka Bošnjak told RTS.

The new General regulation plan will define more zones suitable for new construction sites. Once the legalization procedure is completed, a fund for new legally registered apartments will be created, explains Bošnjak.

"I expect that in the next year or two the prices will consolidate, and after that, we will see a decline," Bošnjak believes.

With the completion of the census, the conditions were created to create a new General regulation plan. It is a strategic plan that defines the complete development of the city, and it defines its borders, scope, economic, and educational development, housing, protection of natural and cultural assets, and city health-care program.

"This General regulation plan should solve a large number of problems because it should be both rehabilitative and developmental. The rehabilitative should solve traffic problems, and housing in suburban settlements which are mostly unhygienic and ecologically unfavorable", explained Branka Bošnjak.

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