Can we expect a drop in real estate prices in Serbia?
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Loading... - Joanna Bailey
- 23 Aug 2022
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The prices of construction materials have increased significantly this year, which significantly affects the increase in the value of real estate. However, despite the dizzying growth of real estate prices, data show that construction in Serbia has increased by more than 10 percent in current prices, while a noticeable drop is slightly less than 6 percent, when it comes to constant prices.
Analysts say that these figures indicate an increase in the price of materials and that less construction work was done for more money. According to the analysis of the current situation, the conclusion of the REBEC conference is that in the next two or three years, real estate prices will rise or stagnate.
In Serbia, only 38 percent of real estate is bought on credit, while 40 percent is new construction. For now, the practice is such that buyers feel safe when it comes to this market and prefer to keep their money in the form of real estate. At the moment, a slight slowdown is felt when it comes to real estate sales, and Zlatibor is especially attractive to buyers.
Belgrade's market is traditionally very attractive, and in the territory of the capital, apartments of 75 to 85 square meters are the most sold. Among the buyers, the most numerous are Serbs from the diaspora, who know very clearly what they want, followed by citizens of Montenegro, but also our citizens from other cities. When it comes to foreigners, they are interested and buy real estate, but the problem is a poorly regulated system when it comes to residence in our country. That is why more of them decide to rent, instead of buying. With the arrival of people from Ukraine and Russia in March and April, there was a sudden jump in prices.
Why is the price not expected to drop?
Experts cited several reasons why they do not expect real estate prices to fall. Certainly the most important among them is the war in Ukraine, which is reflected in the global market. Interest rates are on the rise, while supply is hampered precisely because of this situation.
It is noticeable that the market has slowed down, that is, "calmed down", but for now there are no particular indications that prices will go down. Experts say that in the next two years it is only possible that things will get worse. Some of them forecast a 10 percent increase in prices for each subsequent year.
If the conflict in Ukraine escalates, it will have an even greater impact on the economic situation in our country. On the other hand, if the conflict remains at this level, there is no reason for a sudden change, according to experts.
Falling prices of construction materials?
The price of iron started to fall in the past two weeks, and forecasts are that this practice will continue. According to Business Insider, the price of iron on June 17 was $1,350 per ton, while the continuous decline began on June 8. The price of iron significantly affects construction, because this sector is significantly affected by the crisis due to the increase in the prices of all materials needed for construction.
Because of this, a large number of investors decided to abandon construction and wait for a more favorable opportunity. Read More…
