Mattresses Replaced by Shops and Studio Apartments

What is certain, however, is that more people are investing their extra money in land or real estate. Living off rental income is a rewarding option.

But not all properties are equal when it comes to investment. Some are more profitable and faster to pay off, while others take years or serve only as a budget supplement or future retirement fund. It is important to consider financial logic, market indicators, and return-on-investment strategies depending on the property type.

If we compare a studio apartment, garage, or retail space as three possible investment options, each carries a certain level of risk, but also potential gain.

Studio Apartments – The Most Stable and Fastest Return

"Investing in a studio apartment offers the most stable and quickest return. Garages are low risk but offer modest returns. Retail spaces have high potential, but also high risk," says Marijana Todorović from Europolis Real Estate for 4zida.

She explains that studios are in high demand, especially in large cities like Belgrade, Novi Sad, and Niš. Their small size means lower annual property tax, and the strong rental demand ensures a relatively quick capital return, about 15 to 17 years.

In attractive locations, studios are ideal for short-term rentals ("apartment for a day"), which speeds up return on investment.

“At first, studios require a higher upfront investment, and there’s the matter of maintenance and tenant turnover. However, the advantages include long-term rental appeal and appreciation in value over time,” Todorović explains.

Garages – Low Risk but Modest Returns

With cities increasingly congested and parking a growing issue, the idea of investing in garage spaces makes sense. Still, Todorović notes that garages are low-risk investments, but with limited income.

“Garages are cheap, especially outside city centers, have almost no maintenance costs, and are highly sought after in populated areas. The downside is a lower return rate and possible urban planning limitations. This type of real estate is ideal for passive investors,” she adds.

Retail Spaces – Big Potential but High Risk

As shopping shifts from city centers to large malls, many central shops have closed. Still, Todorović argues that retail space offers enormous potential, but at a high risk.

“Retail properties can bring the highest returns if in good locations with stable tenants, like franchises, pharmacies, or store chains. The risks include long vacancies, high renovation costs, and market demand fluctuations,” says Todorović. Retail properties are best for experienced investors with a good understanding of micro-locations and tenant profiles.

Garages Are the Cheapest Investment

In Belgrade and Novi Sad, garage prices range from €1,500 to €3,000 per square meter. A typical garage costs €15,000 to €30,000.

Todorović notes that a 50-square-meter retail space in these cities might cost between €2,500 and €4,000 per square meter, meaning an investor would need €100,000 to €250,000 to buy one.

Location Often Determines the Price

Micro-location is key. Two identical garages in various parts of the same neighborhood can have different levels of demand. The same goes for retail spaces, pedestrian zones are prime locations.

For instance, a 396 m² commercial space in downtown Belgrade is listed on 4zida for €1.8 million, or €4,545 per square meter. On Terazije, a central Belgrade location, a 207 m² retail unit is priced at €1.55 million, or €7,488 per square meter.

On the same site, a 39 m² retail space in Mladenovac, a suburban area, costs €52,000 (€1,333 per m²). On Banovo Brdo, a 165 m² space goes for €450,000.

Which Rental Brings the Most Profit?

In Novi Sad and Belgrade, a studio apartment can earn €350–550 per month, depending on condition and location.

A garage rents for €70–150, while a retail space can generate €500 to €2,000 per month, Todorović explains.

“Studios tend to attract the most stable tenants, students, singles, and digital nomads. Retail spaces, on the other hand, can bring in large profits, but require more effort and negotiations with tenants,” she adds.

“Investors often buy both a garage and an apartment but rent them out separately. This way, they earn more, since garages are in higher demand when not tied to an apartment,” she notes.

Stability, Simplicity, or Profit Potential—How to Decide Where to Invest?

If your goal is a stable monthly income and long-term value, a studio apartment is the best choice. If you prefer low entry cost and little involvement, go for a garage. But if you’re aiming for high returns and can afford to wait and negotiate, a retail space may bring the most, with the highest risk.

More Risk, More Money

If you’re looking for bigger profits, retail property is your best bet. But money won’t fall from the sky, you’ll need negotiation skills and patience.

A 50 m² retail space in a suitable location can yield €1,000–2,000 monthly rent, Todorović estimates, which results in 8–12% gross annual returns, much higher than apartments (~5–7%).

If the tenant covers utilities and VAT, net income can be very competitive, especially with long-term leases of five years or more. Some contracts even include inflation-adjustment clauses, protecting real income.

Pharmacies, branded markets, franchises, and dental offices often sign for five or more years with renewal options. This reduces risk and improves predictability. Still, it’s not all smooth sailing for retail owners; challenges are constant.

“If a retail space sits empty for six months to a year, it becomes a burden. Demand is unstable, and some types of businesses, like cafés and salons, are quick to leave during a crisis,” says Todorović.

Add to that the renovation costs. A space with no ventilation, plumbing, or storefront may require €10,000–30,000 in upgrades to become attractive to renters.

Final Thoughts

Real estate investment remains one of the most reliable ways to preserve and grow capital. But choosing between a studio, garage, or retail space should align with your investment goals and risk tolerance.

• Studios offer fast, stable returns.
• Garage is affordable and easy to manage.
• Retail spaces hold the highest earning potential, but also bring the most challenges.

The key lies in understanding micro-locations, tenant types, and being patient.