Apartment prices in Serbia rose by 5.31% in the first quarter of this year, with the highest increases recorded in Belgrade and the regions of Southern and Eastern Serbia.
Experts interviewed by Danas say this price growth was expected, mainly driven by inflation. They also point to a decline in building permits issued, which slowed down new construction, while demand for apartments either remained steady or increased in some areas.
One source highlights that the state program offering “loans for apartments for young people” contributed to the price increase, especially outside Belgrade, where apartments up to €120,000 were eligible for loans.
Another source suggests political instability may have driven undisclosed funds into the real estate market, further pushing prices up.
While Belgrade saw only a modest 0.3% increase in apartment sales prices, the South and East Serbia region experienced a sharp 41.4% rise compared to the same period last year. Vojvodina saw a 10.9% increase, while Šumadija and Western Serbia recorded a slight decline of 0.4%.
Licensed real estate appraiser Milić Đoković explained that inflation, increased buyer activity—especially among those using government-backed housing loans for young people—and a shortage of available apartments are key factors driving the price rise.
He noted that although the government’s €400 million program to support young buyers is well-intentioned, it has had unintended consequences due to insufficient housing supply. Đoković emphasized that before introducing such financial incentives, the state should have encouraged more apartment construction or sped up legalization processes to boost supply.
He added that the drop in building permits has slowed new construction, which, combined with steady demand, naturally causes prices to increase—following basic market principles.
