Serbia’s real-estate market recorded €2.2 billion in property transactions in the second quarter of 2026, but the number of completed deals fell, pointing to a market increasingly shaped by higher prices and more selective buyers. According to the Republic Geodetic Authority, total transaction value increased 8.1% year on year, while the number of purchase contracts declined 5.4% to 30,495. Around €369.7 million of turnover came from the partially regulated segment.
The divergence indicates that more capital is moving through fewer transactions. The implied average transaction value rose from about €63,000 in the second quarter of 2025 to more than €72,000 a year later, although this is not an official property-price measure because the composition of transactions varies.
Apartments remain the main source of turnover
Residential property continued to dominate the market, with apartments generating approximately €1.3 billion, or 62% of total turnover. Houses accounted for around €175 million, construction land for €156 million, commercial premises for €119 million and agricultural land for approximately €77 million. Apartment transactions fell 5.8% year on year to 11,938, but their total value increased 7.7% to about €1.3 billion. The RGZ apartment price index rose 5.25% annually and 1.19% quarter on quarter.
Existing apartments recorded stronger price growth of 5.98%, compared with 3.86% for newly built units. Regionally, prices increased 6.21% in Southern and Eastern Serbia, 5.65% in Belgrade, 4.86% in Vojvodina and 4.28% in Šumadija and Western Serbia. Transaction activity weakened across major cities. Purchase contracts declined 1.7% in Belgrade, 1% in Novi Sad, 4.3% in Niš and 7% in Kragujevac compared with the second quarter of 2025.
Belgrade continues to dominate the premium market
Belgrade remained the country’s main property market, with apartment transactions worth approximately €742 million during the quarter. Their value increased 12.6% year on year, despite a 2.5% decline in the number of contracts. The premium segment continued to record exceptionally high prices. The most expensive apartment sold during the quarter was in Savski Venac for €1.6 million, while the highest recorded apartment price reached approximately €9,300 per square metre.
A house in Voždovac sold for €1.4 million, while a garage in Stari Grad reached €54,000. Mortgage financing remains limited. Only 15% of all Serbian property transactions were financed through bank loans, while mortgages accounted for about 34% of apartment purchases. At the same time, financing conditions have improved. The average interest rate on newly approved housing loans stood at approximately 4.5% in June 2026, while the broader average for new euro and euro-indexed household loans was 4.8%.
Construction remains strong despite weaker sales
Supply continues to expand. Serbia issued 2,673 building permits in June 2026, up 11.3% year on year, covering 3,873 apartments. More than four-fifths of building permits were related to residential construction. Construction activity also accelerated. The value of completed construction works increased 20.6% nominally and 9% in real terms in the second quarter compared with the same period of 2025.
The figures indicate that the market is not facing a simple nationwide shortage of new housing. Instead, supply and demand are becoming increasingly dependent on location and price. Prime areas of Belgrade remain supported by strong demand, while affordability pressures are more visible in markets where household incomes are lower and investment demand is weaker.
Mortgage costs fall as affordability remains under pressure
Serbia’s macroeconomic environment remains relatively supportive. Real GDP growth was estimated at 3.6% year on year in the second quarter of 2026, compared with 3.2% in the first quarter. Annual consumer inflation fell to 1.9% in July, while the National Bank of Serbia kept its policy rate at 5.75% on 13 August.
Lower inflation and cheaper mortgages provide some support to buyers, but they have not reversed the impact of several years of property-price growth. For many households, the principal challenge is increasingly the total purchase price rather than the cost of borrowing alone. Investment demand also remains important. Residential property continues to serve as a savings vehicle and inflation hedge for households holding significant euro savings, while Serbia’s relatively shallow capital market limits alternative domestic investment options. This can contribute to lower market liquidity because owners who are not under pressure to sell can keep properties vacant or rented rather than reduce asking prices.
A more selective market emerges
The second-quarter figures do not show an outright property downturn. The national apartment price index was still rising 5.25% annually, while construction activity and overall turnover remained strong. The combination of rising values and declining transaction numbers points to a more selective market. Sellers are maintaining relatively high valuations while some potential buyers are withdrawing or delaying purchases.
The difference between regions is becoming increasingly important. Southern and Eastern Serbia recorded a 0.4% decline in apartment transaction value alongside an 11.8% fall in apartment sales volumes, while Belgrade continued to attract significantly higher transaction values. For developers, this environment could favour projects in highly liquid locations while increasing pressure on developments in weaker markets. Instead of major headline price reductions, competition may increasingly involve smaller apartments, payment arrangements, parking incentives and other measures that reduce the total purchase cost. Serbia’s €2.2 billion property market therefore combines continued price appreciation with fewer completed deals, leaving the next phase of the cycle increasingly dependent on affordability, location, financing conditions and the ability of buyers to absorb higher asset prices.
