The company CB Richard Ellis has published another study on the status of the property market in the Serbian capital. The first half is characterized by a significant increase in demand for flats, which is due to lower their cost, as well as government subsidies for mortgages.
The economic situation in Serbia
According to the Statistical Office of the Republic of Serbia, referred to by the study, in the I quarter of the country's GDP increased by 0,6% compared to the same period last year. In this case the construction industry has become one of the leaders among other branches of the Serbian economy at the rate of incidence of the indicator (12%).
The inflation rate fell in May to a record low value of 3,7%, but in a depreciation of the Serbian dinar is likely to exceed the end of the year planned by the Central Bank of 6%. Unemployment remains high - as of April it was 19.2%.
In June, the Serbian authorities have approved a program of assistance to the construction sector to the economy of $ 30 billion dinars (? 288 million). These funds will be used, including for the construction of 10 thousand objects of affordable housing in Belgrade and other major cities.
Proposal on the housing market in Belgrade
In 2009, the volume of new supply of residential real estate Serbian capital decreased by 21,8% compared with the previous year. However, by the end of 2009, construction activity began to rise again. This trend has continued this year.
Currently in Belgrade implemented a number of large residential projects in the middle and upper price segments. Analysts say the new space will be sufficient to "saturate" the market over the next few years.
Demand for the housing market in Belgrade
Thanks to government support measures for the market, the demand for residential buildings increased significantly compared with last year, reflected in increasing the volume of mortgage lending. According to the Association of Serbian Banks, the number of loans for the I half of mortgage loans rose by 60% annualized.
In addition, many property owners are doing discounts on items sold, which reach 15-20% of the requested value. A similar trend is also driving demand.
Room facilities in the upper price segment has not changed much for the I half year and ranged ? 2,7-3,2 thousand average cost of housing in Belgrade amounted to about ? 1,8-2,3 thousand for the quarter. m
If you pay in cash the total amount of the transaction was an average of 5-10% cheaper than using a mortgage loan.
In January-June in the housing market in Belgrade observed burst tenant activity. The most attractive were the central areas of the city, where the offices of international companies and foreign embassies. The cost of rent in these areas has declined in the past year by 20%, and in the first six months of this year, has stabilized at ? 8-13 per square. m per month.