Published on 13 October 2005 at 07:46 am
Filed under: Europe:- Serbia Property Guides » Serbia a Country Guide for Property Buyers
Serbia is an interesting country from a property buyer’s perspective; there is massive room for development and growth in the real estate sector particularly in Belgrade, and the government of Serbia are committed to encouraging and enabling foreign investment into the property market over the long term.
Furthermore rental demand for quality accommodation currently far outstrips supply in Belgrade and cripplingly high interest rates place property ownership beyond the local market; but as Serbia seeks to align its policies, economy and currency with those of the EU, so domestic purchasing power will increase along with investment into Serbia creating an attractive long term investment prospect for the property buyer willing to put up with some short term discomfort.
Serbia is a country seeking to rebuild itself and its reputation following the brutal wars that dominated its landscape in the 1990s. The warring left Serbia’s stunning capital city of Belgrade in tatters but certainly not beyond repair and a huge effort has been made to restore the city to its former glory as one of the most beautiful capital cities in Europe.
Foreign investment is being made into Belgrade which in turn has seen an influx of foreign residents - and a great deal of money has been spent on repairing and improving infrastructure turning Belgrade into a modern city with an increasingly Western feel and yet one which also retains historic interest and ancient charm. This dichotomy only adds to the vibrancy and attraction of the city and these factors alone are helping to increase the numbers seeking to establish businesses and residences in Belgrade. However the level of foreign investment into Serbia that is required to boost the economy, improve employment prospects and reduce the foreign trade deficit is a little too slow in coming.
This hasn’t stopped many former residents returning to Belgrade and surrounding areas to rebuild their lives in the city they once fled though. This influx of foreign and local residents has created serious demand for decent rental accommodation particularly in the most attractive of Belgrade’s districts which include Senjak and Dedinje. Apartments are most in demand followed by smaller family homes. In Vracar and downtown Belgrade a lot of new construction is taking place and it’s possible to buy into newly constructed residential complexes off plan but really only as a cash buyer as long term finance is hard to come by and even harder to afford in Serbia.
Because mortgage facilities are far from easily accessible and interest rates across Serbia remain very high, the domestic property market in Serbia is being restricted. An additional problem facing a prospective real estate investor is the fact that property ownership legislation is outdated and consumed with confusion! In principal a foreigner can buy land and property in Serbia based on a reciprocity agreement - whereby, if the foreign purchaser heralds from a country where a Serbian is permitted to purchase land and property, so the foreign investor can buy in Serbia. In practice the buying process can be long, drawn out and because a lot of land is still government owned, large developers are slow to enter the market place.
BUT - fear not - the Serbian government are well aware of the issues and more to the point, they are well aware that by leaving the issues unresolved they will hold back their economic prospects. Therefore Serbia is progressing towards reform and the creation of an open market which will attract the levels of investment desired and lead to the construction of residential, retail and commercial property that is strongly in demand. Furthermore the whole mortgage market is being reformed and simplified and it is intended that more Serbian residents will have access to the home financing they need to buy or construct their own homes.
The future prospects for Serbia are very positive indeed - beginning in Belgrade. Serious and intensifying demand already exists for residential property to rent and in the future this demand will become focused on purchasing. The laws relating to ownership are being simplified and overall Serbia is working to reform outdated policies to attract higher levels of foreign investment into all sectors. A property investor purchasing now will likely enjoy the longest period of growth from the real estate market but have to suffer the discomfort of navigating an unsophisticated market and buying process.
Europe:- Serbia Property Reports
Complete listing of all current property reports for region: Europe:- Serbia
