Photo: PixabayFive years ago, the real estate market in Serbia looked completely different than it does today, and apartments were not such a luxury that only the richest or those who are ready to be in debt "up to their necks" can afford.
The average salary in Serbia at that time was about 48,000 dinars. Today, it is higher and amounts to about 75,000, but it still cannot keep up with the rise in real estate prices, which have recently become unbearable.
When it comes to old buildings, in 2017, according to the data of the Republic Geodetic Institute, it was possible to buy an apartment of 40 square meters in the municipality of Stari Grad, 44 square meters in Vračar, 50 square meters in Savski Venec, 58 square meters in New Belgrade, 63 in Palilula, 57 in Zvezdara, 64 in Voždovac, 66 in Čukarica and 63 square meters in Zemun.
Today, citizens have to shell out significantly more money for an apartment of this square footage, since the average price per square meter, compared to 2017, in some municipalities, such as Savski venac and New Belgrade, is more than 70 percent.
Therefore, today for 70,000 euros it is possible to buy an apartment of 25 square meters in the Old Town, 27 square meters in Vračar, 28 square meters in Savski venac, 32 square meters in New Belgrade, 37 in Palilula, 35 in Zvezdara, 39 in Voždovac, 43 in Čukarica and 39 square meters in Zemun.
With new construction, the situation is the same - what citizens could buy five years ago, today they can only dream. The current prices of square meters in some municipalities are, compared to those at the time, higher by more than 40 percent, while the Old Town is the absolute record holder, with an increase in the price of square meters in new buildings of as much as 83 percent - from 1,918 to 3,508 euros.
Thus, in 2017, for 70,000 euros, it was possible to buy an apartment of 25 square meters in the municipality of Stari Grad, 27 in Vračar, 28 in Savski venac, 32 in New Belgrade, 37 in Palilula, 35 in Zvezdara, 39 in Voždovac, 43 in Čukarica and 39 square meters in Zemun.
Today, you can buy an apartment of 24 square meters in Vračar, 27 in New Belgrade, 30 in Palilula, 34 in Zvezdara, 32 in Voždovac, 33 in Čukarica, 33 in Zemun, while in the municipalities of Stari grad and Savski venac you can't really buy one.
IN NOVI SAD, THE PRICE OF OLD BUILDINGS JUMPED 92 PERCENT, NIŠ AND KRAGUJEVAC ARE MORE EXPENSIVE
In Novi Sad, five years ago it was possible to buy an apartment of 77 square meters in an old building for 70,000 euros. Today, prices are even 92 percent higher than in 2017, so that square footage is halved - for this money, citizens can afford a 40-square-meter apartment.
In new construction, the difference is slightly smaller because prices are 52 percent higher compared to then, so citizens can buy an apartment of 44 square meters for 70,000 euros, compared to the previous 67.
In Niš, too, the price of old apartments has more than doubled compared to the period five years ago - it is 59 percent higher. In the past, residents of Niš could buy an apartment of up to 100 square meters for the stated amount, but today that figure has dropped to 63.
The price of apartments in new buildings has increased by 45 percent, so the residents of the city of Niš can now afford 59 square meters in one of these buildings, while five years ago they could afford 67 square meters.
Old buildings in Kragujevac did not suffer major shocks, since today's prices are only 22 percent higher than in 2017. However, even that is not a small difference, so the people of Kragujevac today can pay for 79 square meters for 70,000, compared to the previous 97.
New construction grew more, 40 percent. In the past, it was possible to buy 82 square meters in this city for this money, and today - 59, writes kamatica.com.
DEMAND IS STABLE, ONLY THE PRICES ARE HIGHER
As real estate agent Uroš Jovanović explains for Nova.rs, there are several reasons for the dramatic rise in real estate prices, and Russians are not one of them. Most Russians don't buy apartments, they rent them, and that may change from March when their leases start to expire.
"Behind everything is a healthy, domestic demand, unlike the period 2007/2008." years. And behind that demand, although it sounds incredible, is the increase in standards, but also many people who are entrepreneurs, company owners or work in the IT sector and at the moment can repay three loans if needed, because they earn well. Also, many of our people who live abroad buy apartments in Serbia because it is still incomparably cheaper", says Jovanović and adds that the conditions for loans in previous years were more favorable.
According to real estate agent Davorka Tasić for Nova.rs, the demand in the last five years has been quite stable, only the prices are higher.
"Now we even have a lull because of the holidays, always at this time of the year people move less," adds Tasić.
She also points out that the difference in prices is really huge and cites the example of Vračar.
"Once upon a time, you could buy a beautiful, large apartment in Vračar for 150,000 euros. "Today, you can buy 40 square meters, and that's an apartment that needs renovation," says Tasić.
Source: kamatica.com
