Published on 29 November 2005 at 04:59 pm
Filed under: Europe:- Serbia Property Guides » Serbia Property Investment Guide
Serbia has substantial investment potential for the property investor willing to commit to the market for the longer term.
Those who are patient and can wait for local purchasing power and mortgage lending facilities in Serbia to improve will likely reap fair returns from this emerging market.
Because Belgrade - the capital of Serbia - was so badly damaged during the recent war in the region it has subsequently benefited to the tune of millions of dollars in aid packages and this has resulted in the creation of a new Belgrade; a city where infrastructure is first class and the brand new residential and commercial property developments under construction are being built to the highest Western standards.
At the moment however there is a severe lack of quality housing in Belgrade, and while the number of developments under construction will help assuage this problem they will not fill the housing deficit for at least the medium term. This means that those who purchase quality accommodation units in Belgrade right now can capitalize on rising rental prices.
Property investors considering entering the buy to let market in Belgrade are currently focusing their attentions on the incredibly popular Belgrade districts of Senjak and Dedinje but are also diversifying further afield into properties in various parts of Vracar, Banovo Brdo, Vozdovac, Zvezdara, Beaanijska Kosa and Zemun. These are up and coming areas which may return property investors higher returns in the longer term than already established districts in Belgrade like the aforementioned Senjak and Dedinje.
Real estate investors are generally targeting the local Serbian market for rental income although expatriate interest in Serbia is growing as employment opportunities in Belgrade grow. In terms of the resale market place, investors can resell to investors or they can begin to tap into the local purchasing power and demand - this is however limited and restricted by the lack of decent and affordable mortgage facilities at the moment as well as relatively high interest rates.
In the future interest rates are set to fall and fiscal policies in Serbia should come in line with those of the EU which also means that borrowing facilities will improve and open up the property market to domestic buyers as well as foreign investors.
Unlike in many other Eastern European and emerging property markets, those foreigners eligible to purchase freehold property for sale in Serbia also have the right to own the land on which the property sits without having to establish a local company or foundation. This creates more transparency in the Serbian property buying process but that does not mean the process is free from the shackles of red tape and corruption!
Those buying property in Serbia should only do so with the assistance of a recommended and qualified independent legal advisor.
Outside of Belgrade property investment opportunities also exist in the Serbian cities of Novi Sad and Nis. Novi Sad is the second largest city in Serbia and considered by many to be the most beautiful and culturally rich of Serbia’s cities. Nis is an important commercial centre in Serbia and as a result there are a number of commercial property investment opportunities available to the international investor in this southern Serbian city.
Europe:- Serbia Property Reports
Complete listing of all current property reports for region: Europe:- Serbia
