Serbia’s property market recorded around €4.2 billion in transactions in the first half of 2026, with total turnover rising 10.1% year on year despite almost no change in the number of deals. The number of purchase contracts increased only 0.2% to 61,343, according to official cadastral data. In the apartment segment, transaction value climbed 11.4%, while the number of sales declined 1.9%. Apartments generated approximately €2.5 billion, accounting for 61% of total property turnover.
Belgrade Accounts for More Than Half of Apartment Value
Belgrade represented roughly 55% of apartment transaction value in the first six months, reflecting the capital’s higher prices and concentration of investment activity. The most expensive apartment sold for about €2.6 million, while the highest recorded price reached approximately €12,000 per square metre in central Belgrade.
The average apartment transaction nationwide stood at around €100,157, increasing the importance of savings, family assistance and bank financing for buyers.
Mortgage Financing Gains Ground
Mortgages financed around 33% of apartment purchases, up three percentage points from a year earlier. The increase comes as household borrowing expands by close to 20% year on year, including strong growth in mortgages and housing-improvement loans.
Serbia’s housing market has traditionally relied heavily on cash purchases, but the rising mortgage share is making borrowing costs, employment and household incomes increasingly relevant to transaction activity. Credit-quality indicators remain strong, with little evidence of broad financial stress.
Construction Expands While Apartment Transactions Decline
The property market is developing alongside strong construction activity. Construction output increased 9.1% year on year in Q2, supported by public infrastructure projects and private development. Developers are continuing to add housing supply even as apartment sales volumes weaken. If this divergence persists, slower absorption could increase pressure on developers to compete through location, quality and pricing.
The first-half figures indicate greater selectivity among buyers rather than evidence of broad oversupply.
Commercial Property Records Stronger Transaction Growth
Commercial property recorded approximately 30% growth in transaction value and 6.4% growth in transaction numbers. The simultaneous increase in values and deal volumes contrasts with the residential market and points to stronger activity in offices, retail, logistics, industrial sites and mixed-use developments.
Logistics and industrial property remain supported by Serbia’s role as a regional manufacturing and distribution base, alongside continued economic and infrastructure investment.
Rising Prices Increase Affordability Pressure
Residential property continues to serve as an important store of wealth for Serbian households, with cash, deposits and real estate traditionally representing significant savings assets. Diaspora buyers also remain important in larger cities.
Inflation has further supported demand for tangible assets, helping property prices remain resilient despite higher borrowing costs. Large developments such as Belgrade Waterfront and other central-city projects have lifted the upper end of the market. While prime transactions do not represent the national average, high-end developments can establish new price benchmarks for surrounding areas. As buyers move toward less expensive locations, price pressures can extend into neighbouring parts of the metropolitan market.
Transaction Volumes Highlight Affordability Constraints
The first-half data show that Serbia’s property market is increasing in value without a corresponding expansion in transaction activity. The divergence is particularly visible in apartments, where values rose while sales declined. This indicates that affordability is becoming a more significant constraint for buyers.
Future market activity will depend on the relationship between household incomes and property prices, the sustainability of mortgage growth and the ability of developers to add supply in areas with sufficient demand. For now, Serbia’s property market continues to grow in financial value, while residential transaction liquidity remains largely stagnant.
