Serbian authorities issued 2,673 building permits in June, an increase of more than 11% year on year, covering planned construction of approximately 3,873 apartments. The increase in permitted residential development comes as apartment prices remain elevated and developers expand the pipeline of new housing projects. The composition of the planned construction points to continued reliance on multi-unit residential buildings, with developers adjusting project design to prevailing affordability constraints.
Multi-unit buildings dominate new housing plans
Almost 88% of apartments planned in new residential buildings are located in buildings containing at least three units. The average apartment size in these projects is approximately 63 square metres, indicating a continued emphasis on relatively compact residential units.
Smaller apartments allow developers to maintain commercially viable projects while reducing the total purchase price faced by individual buyers. This approach remains relevant as construction and land costs keep the price per square metre elevated.
Building permits expand future housing supply
The higher number of permits provides additional potential housing supply, although authorised projects do not immediately translate into completed apartments. Developers must still secure financing, undertake construction and deliver the properties, while some permitted projects may not progress beyond the planning stage.
The geographical distribution of construction also remains uneven. Belgrade accounts for the largest share of construction investment, while activity in several other Serbian regions has weakened materially. As a result, new residential supply can remain concentrated in locations where both housing demand and property prices are already high.
Residential development supports wider business activity
The expansion of the housing pipeline has implications beyond the property sector. Higher residential construction activity supports construction employment, cement and building-material consumption, engineering services, furniture demand, banking and mortgage activity. Residential development has consequently become an important component of Serbia’s domestic investment cycle.
At the same time, the concentration of capital in property development represents a significant feature of the investment landscape, as residential construction competes with other forms of business investment for available capital. The June figures show continued development activity, with 2,673 building permits covering approximately 3,873 planned apartments, while the eventual completion of those projects will depend on their financing, construction and delivery.
