Belgrade’s housing market continues to command high prices even as buyers become increasingly selective, exposing a widening gap between property valuations and domestic purchasing power. Real estate remains a preferred store of value for many Serbian households, supported by limited supply in prime locations, demand from the diaspora, cash purchases and continued development of high-end projects. At the same time, the relationship between asking prices and local incomes is becoming increasingly strained.
The market’s focus is therefore shifting toward the ability of individual assets to retain their value as purchasing decisions become more cautious.
Investment is expanding beyond residential property
Capital is also moving into property segments tied more directly to operating demand. Logistics facilities, modern retail parks, student accommodation, senior housing, energy-efficient offices and professionally managed rental properties are emerging as alternatives to conventional apartment investment. These asset classes are less dependent on the assumption that residential property will automatically appreciate and instead depend on identifiable demand for the services and facilities they provide.
Construction activity has also become more uneven. The value of construction works in Serbia increased by 8.6% in real terms in 2024, driven by transport infrastructure, housing and utility projects. The sector was considerably weaker in the following year, highlighting its exposure to the timing of investment and large-scale projects.
Expo 2027 increases infrastructure activity and execution risks
Investment associated with Expo 2027 is expected to affect transport, hospitality and urban infrastructure. The accelerated construction programme also brings exposure to higher costs, shortages of contractors, congestion and uncertainty over the longer-term use of assets built to meet the event’s deadline.
The office market is undergoing a separate adjustment. Companies may require less space per employee, but demand is increasingly concentrated on properties offering efficient buildings, access to public transport, flexible floor layouts and amenities that support workplace attendance. Older office buildings lacking those characteristics face the possibility of losing tenants even before their physical structures become obsolete.
Regional markets offer opportunities with thinner liquidity
Outside Belgrade, Novi Sad and selected regional centres remain potential destinations for residential, logistics and commercial investment. However, liquidity in these markets is thinner, increasing the importance of understanding the actual pool of potential tenants and buyers before development begins. For developers, construction cost alone is therefore an insufficient basis for assessing a project. The intended occupants and purchasers, the infrastructure supporting the property and the asset’s long-term operating relevance all affect its commercial prospects.
