Belgrade’s office market concluded 2025 with a stable structural framework, marked by moderate stock growth, robust tenant demand, and a notable revival in investment activities. The total office space reached 1.46 million square meters, with an annual take-up of 180,000 square meters. The vacancy rate remained healthy at 5.67%, while prime assets saw a tighter vacancy rate of 2.5%. Notably, office investment volumes surged to EUR 131 million, indicating a significant recovery in capital markets compared to the previous year.
This market behavior illustrates a maturing trend in Central and Southeast European capitals, characterized by stable absorption patterns and a growing distinction between Class A and secondary office spaces. There is also a renewed interest from institutional investors in the region.
In terms of supply, no new office developments were completed in the last quarter of 2025, keeping the total modern office stock steady at 1.46 million square meters by year-end. Throughout the year, over 65,000 square meters of new space were introduced, resulting in a 5% increase in stock year-on-year. This cautious expansion reflects a development landscape influenced by tighter financing conditions and elevated construction costs.
The absence of new completions towards the end of the year contributed to a tightening effect in prime segments, particularly within well-connected business districts like New Belgrade. Existing high-quality buildings experienced sustained interest from occupiers due to limited new supply.
Despite a moderate annual decline in demand, total take-up for the year reached 180,000 square meters, representing a 9% decrease from 2024. However, this decline does not indicate a fundamental weakness in the market; leasing activity remained stable due to renewals and selective expansions by corporate tenants. Lease renewals accounted for 43% of total activity, highlighting tenants’ preference for location stability and cost predictability.
New leases constituted 40% of transactions, driven by domestic companies, international IT firms, business service providers, and regional headquarters consolidating operations in Belgrade. Additionally, there has been a gradual increase in sublease transactions as hybrid work strategies evolve.
Belgrade continues to leverage its position as a regional hub for outsourcing and IT services. The city benefits from a skilled workforce, competitive operational costs compared to Western Europe, and enhanced international connectivity.
As of the end of 2025, the overall vacancy rate was recorded at 5.67%, slightly higher than in 2024 but still within the healthy range of 5-10%. Quarterly data indicated an improvement in absorption rates towards year-end, particularly within prime segments where Class A vacancy decreased to just 2.5%. This reflects strong demand for high-specification buildings that meet energy efficiency and ESG compliance standards.
A significant highlight for the year was the rebound in office investment activity. Transaction volumes rose sharply from EUR 14 million in 2024 to EUR 131 million in 2025, driven by several large transactions. This surge indicates renewed investor confidence in Belgrade’s commercial property fundamentals amid improved macroeconomic conditions and stabilizing European interest rates.
For institutional investors, Belgrade presents attractive opportunities with yields above Western European averages and strong tenant profiles in Class A properties. Controlled supply growth further mitigates vacancy risks while stable euro-denominated lease structures enhance investment appeal.
Prime headline rents remained stable at EUR 16-18 per square meter per month, with top-tier assets exceeding EUR 19 per square meter. The rental stability reflects tight vacancy levels and sustained demand for quality office spaces. In contrast, Class B rents ranged between EUR 12-14 per square meter, highlighting the widening gap between premium and secondary properties.
As Belgrade’s office market heads into 2026, conditions appear balanced with controlled development pipelines and healthy vacancy levels supporting ongoing demand. Key trends expected to shape the future include continued performance of prime assets and selective refurbishments of aging stock.
Overall, the developments throughout 2025 demonstrate that Belgrade’s office market has matured into a stable environment characterized by disciplined supply management and renewed investor interest.
