Belgrade is becoming the center of the region
The conference ”Let’s talk about real estate” in the organization of the leading real estate consultancy CBS International, part of the Cushman & Wakefield Group, gathered yesterday in the Crowne Plaza Hotel the most prominent domestic and international investors summarizing the results of 2018.
The last twelve months have brought positive changes in the real estate market, and the general conclusion is that Serbia is becoming more and more interesting location for investments in all segments.
The number of construction sites in our capital best witnesses the realization of the announced projects, and a similar situation is expected in the next couple of years. Office market has recorded an exceptional demand in this year, which for the first time exceeds the level of 100,000 square meters of leased office space, so the rate of available office space in Belgrade fell to a level that can be compared to a far more developed European investment destinations. By the end of the year 2020 Belgrade will, with the finalization of the office development schemes currently under construction, reach 1 million square meters of office space in its offer. Although the main business zone is still New Belgrade, with the construction of class A office buildings in the city center, such as the modern office building Business Garden, it is expected that the focus will be shifted to the old part of the Serbian capital.
Belgrade retail market will double its offer with the construction of three shopping malls in the next two years, and with their construction the total supply will reach the level of about 500,000 square meters of retail space, which will enable the expansion of the present as well as the arrival of new brands.
Residential market continues to face three times lager demand than the new supply, and CBS International has in the past three years realized over 100 million euros net value of sold apartments. What is indicative is that the best-selling projects of the key international and local developers invest considerable time into the planning phase and project development, forming the perfect product in line with the needs of the specific target niche for the given locations, thus making sure that the project matches the real demand and as such is easily marketable.
Industrial market is expected to expand in years to come as highly promising field of investment. Many well-known international companies are interested in investing in Serbia, either in the new production capacities, or in the expansion of the current ones. The yield levels achieved by purchasing investment property are higher than yields in countries in the region, and especially compared to the main markets of this part of Europe, such as Poland and the Czech Republic, which together with the overall political stability and economic growth of the country constitute the main reason for their interest in the Serbian market.
Given that our market is lagging behind the cities in the region, opportunities for investment exist in all segments, and the conclusion of the experts from CBS International is that a positive trend in the real estate market is expected to continue in the upcoming period.