Does Belgrade have the capacity to expand the offer of apartments?

Belgrade, as a dynamic center of Serbia, is experiencing rapid changes in the urban landscape that raise an important question - does the city have the capacity to expand the offer of apartments to meet the growing needs of the population? To this question, we will answer in this article.

Demand still exceeds supply

Around 15,000-16,000 apartments are still sold annually in Belgrade. Despite the large number of apartments sold, demand is not abating, and it is estimated that there are currently around 10,000 empty, unsold apartments in Belgrade.

It is important to point out that these apartments for sale in Belgrade did not remain unsold due to a lack of interest. On the contrary, interest is still at a high level, but what stands in the way of selling these apartments is that the Belgrade real estate market is still a seller's market. This means that sellers determine the dominant price, leaving little room for negotiation with buyers. Thus, the price correction, or rather the discount given by the investors, was mostly from 2 to only 5%.

In these conditions, buyers had to make a compromise, so the demand for studio apartments jumped, primarily in the central parts of Belgrade, in Vračar, Zvezdara, but also in New Belgrade. Studio apartments are also in demand because of the good opportunity for a quick return on investment, with studio apartments there is also the possibility of easier sales and refunds, and a wide range of buyers and economy are significant.

However, the greatest need among interested parties is for apartments of medium square footage of 55 to 60 square meters, and with the current prices, these apartments are out of reach for most middle and even upper middle class buyers. Thus, the high price in the central municipalities, and the lack of "non-luxury" apartments, caused the fact that multiple locations are not the most important criteria for buyers. For this reason, interest in apartments in the peripheral parts of Belgrade is increasing.

Therefore, there is no doubt that there is a need for a richer offer of apartments, especially apartments of medium square footage and more affordable prices. In the following, we find out which locations in Belgrade could be expected to offer such apartments.

Locations with a good offer of apartments in Belgrade

Given that the municipalities of Stari Grad, Vračar, and to a large extent New Belgrade are reserved for exclusive buyers and luxury projects and will continue to be so in the future, it remains to be seen in which locations apartments will be available for the middle class, which makes up the majority of those interested.

Mirijevo stands out among the first locations. Namely, it is quite certain that Mirijevo will continue to develop, urbanize and enrich its offer. This location is attractive because of the good connections with all parts of Belgrade, and it should be even better in the coming period, considering that the first line of the future metro will go to Mirijevo. A large number of schools, kindergartens and parks are also available here, so this location is highly sought after by families. Also, this is exactly the location where we should expect a large offer of apartments with a medium square footage of around 55 square meters. The price of a square meter in Mirijevo is currently around 1,800-2,000 euros.

Surčin is definitely a location that will become an attractive location for buying an apartment after the EXPO is over. It is expected that Surčin will experience the fate of New Belgrade, thus becoming a new residential and business zone that will function as a "city within a city". Also, it is clear that the apartments in this location will be much more affordable in the beginning than later, when there is a more complete development of this municipality. Currently, the price of an apartment in Surčno reaches up to 2,000 euros in a new building, the growth trend is obvious, considering that two to three years ago, an apartment in this municipality could be bought for 1,500 euros per square meter.

The most favorable locations for buying an apartment in Belgrade

The cheapest and currently available in Belgrade are the municipalities of Rakovica, Čukarica and Barajevo. The price of a square meter in Rakovica is around 1,600 euros per square meter. According to the RGZ report for the second quarter of last year, Rakovica was the municipality with the most favorable price per square meter. 

As for Čukarica, according to RGZ data, the average price per square meter for old buildings in the second quarter of 2024 was 1,950 euros, and in new buildings it was 2,115 per square meter. 

It is important to note that Čukarica is one of the municipalities where intensive construction is taking place, and a new urban plan has been adopted for this municipality, which should contribute to its development and a richer offer of apartments. Also, Belgrade on the water is expanding right towards Čurakrica, so the offer of this municipality will also include luxury apartments. So, of the central Belgrade municipalities, Čukarica is the one that is expected to develop and offer a richer range of apartments.

Therefore, Belgrade has plenty of space and capacity to enrich its offer of apartments. In recent years, we have witnessed a jump in the construction and sale of luxury apartments, while in the coming period, we should expect an increase in the supply of apartments of medium square footage, and prices that will be affordable to the middle class.