The debate over whether to invest in an old or new apartment continues to be nuanced by factors such as location, returns on investment, and market trends. Milos Mitic from City Expert explains that while new buildings generally command higher prices per square meter due to factors like VAT refunds and rising renovation costs, the situation varies significantly by location.
In neighborhoods with limited new construction, like Belgrade’s Old Town or central Dorćol, scarcity drives up prices for both old and new apartments. In some cases, older units can even surpass new ones in price per square meter, especially in high-demand areas suitable for quick rental returns on investments.
Data from the 4zida portal illustrates how prices have evolved: the average square meter in older Belgrade buildings has increased by approximately 1,000 euros over the past five years, now exceeding prices in some newly built areas. For instance, while New Belgrade offers a more cost-effective new build at around 2,661 euros per square meter, older areas like Mirijevo demand higher prices at 2,864 euros.
Mitic emphasizes that location remains paramount, influencing not only price but also investment strategy. For short-term gains, investors may opt for older units needing renovation, leveraging lower acquisition costs against potential resale value post-renovation. In contrast, long-term rental returns hinge on location and building quality, with newer developments often offering added amenities and micro-location advantages.
Moreover, unique properties like spacious salons can command prices rivaling luxury new builds, with prime locations in central municipalities fetching up to 4,000 euros per square meter. Despite their appeal, such properties are rare, underscoring the broader diversity within Belgrade’s real estate market.
Ultimately, whether to invest in an old or new apartment hinges on individual goals, market conditions, and the strategic advantage offered by location, highlighting the dynamic nature of real estate investment in urban settings like Belgrade.
