Why You Shouldn’t Expect a Drop in Real Estate Prices in Serbia

Real Estate in Serbia: Prices Only Go Up, So Stop Waiting for a Drop!

Thought real estate prices would finally drop? Bad news from expert Ervin Pašanović! He says you shouldn’t expect prices to fall because that usually triggers an economic crisis. Instead, prices will slowly rise due to fewer building permits being issued and demand outpacing supply.

Fewer Building Permits = Higher Demand

In Serbia, nearly 40% fewer building permits were issued last year compared to before. This means less construction, but demand for real estate remains high or even grows. Pašanović points out this will push up the price per square meter, especially in Belgrade where there are still large undeveloped areas but infrastructure isn’t fully in place.

Who’s Buying Real Estate?

There are people who can afford properties priced over 2 euros per square meter in Belgrade, while in other parts of Serbia, properties can be found for under 1 euro per square meter. As citizens’ incomes rise, so does their appetite for buying, which further drives prices up.

Real Estate as an Investment

Pašanović explains that real estate earns money in two ways: renting out and capital appreciation, meaning the value of the property increases over time. While growth won’t be explosive, it will be steady and gradual.

Geopolitical Stability and Pandemic

Unless there are major political instabilities, new pandemics, or geopolitical crises, real estate prices should continue to rise. This means now is the time to stop hoping for price drops and accept the reality of rising prices.

Belgrade and Surrounding Areas

Belgrade still has large undeveloped areas like the left bank of the Danube – Borča, Ovča, Krnjača. But first, infrastructure like roads, electricity, water, and utilities must be built before mass construction can begin. When that happens, another wave of price growth is expected.

Conclusion

Forget about real estate price drops in Serbia! Experts say prices will only slowly rise, so if you’re waiting to buy a flat at a lower price, you might be disappointed. If you want to invest, now is the time because demand will be higher than supply, and prices will keep going up.

What do you think? Will real estate prices ever fall, or is this the new normal? Drop a comment and let’s see who’s the optimist and who’s the realist!

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