FOCUS ON
REAL ESTATE
FEATURED INTERVIEW
GORAN VESIĆ
Minister of Construction, Transport and Infrastructure
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GORAN VESIĆ
Minister
of Construction, Transport and Infrastructure
A NEW LIFE TO SERBIA
This is the first time the EU has a clear and concrete economic interest in cooperation with Serbia
Regarding the special edition of InFocus Real Estate, we had the opportunity to speak with Goran Vesić, the Minister of Construction, Transport, and Infrastructure, who provided a detailed overview of the infrastructure plans, openly discussed lithium excavation, and commented on the real estate market in Serbia.
WE WILL CERTAINLY ENSURE THAT ALL STANDARDS ARE UPHELD IN EUROPE, AS THEY ARE IN SERBIA AND THE EU
Thank you for the opportunity to speak with Diplomacy & Commerce. Let’s start with a topic that is currently back in the public spotlight, the Jadar project. What is your stance, and what is the role of the ministry you head in implementing this project? In the meantime, the Government of the Republic of Serbia has signed a contract with Germany and the European Commission. What the citizens of Serbia could see is that the project will involve European partners and that, as the president said, over 85% of the ore will remain in Serbia. There will be a chain of factories to process it into finished products like batteries and car factories, providing a significant portion of raw materials for the European auto industry. This aligns with Europe’s policy that all deposits on European territory should be used by European companies.
What I can tell you, as someone who advocates for Serbia’s entry into the European Union, is that this is the first time the EU has a clear and concrete economic interest in cooperation with Serbia. I believe Serbia has essentially entered the EU with this agreement. The formal entry will happen in the coming years; we will likely be the first country, possibly alongside Montenegro from the Western Balkans, to join, but this is a historic agreement for us.
IN THE NEXT EIGHT
YEARS,
NO PROPERTY IN SERBIA WILL BE ABLE TO BE SOLD WITHOUT AN ENERGY PASSPORT
EU. The public will be informed. According to our law, the study and its adoption involve a public hearing and public participation, so everyone will have the opportunity to express their opinions. I am confident that afterwards, some people who may have been swayed by certain insinuations will understand what is happening and how it will be handled.
What is important for the citizens is that, as the environmental impact assessment study is currently being conducted, the best European institutes will participate, in addition to our institutions, and we will do this with the help of our partners from Germany, who have extensive experience in this area. The highest European standards, which apply in every other EU country, will be applied. We can confidently say that the project will be environmentally friendly.
This means nearly 20,000 new jobs, both directly and indirectly, in other companies. There aren’t 20,000 unemployed people in that region today. People will relocate, salaries will be better, and this means approximately 6 billion in investments. Last year, our investments were 4.5 billion, and this year, in the first 3 to 6 months, they were 2.3 billion. This is a huge gain for us, an increase in GDP, higher wages, and higher pensions.
The construction of the entire infrastructure in the western part of Serbia, such as the continuation of the fast road, which will be completed this year, from Šabac to Loznica, another 21 km to Mali Zvornik, and a bypass around Loznica. We will work on reconstructing the Ruma-Šabac-Loznica railway, which is part of the Belgrade-Sarajevo railway. Thus, we will have a connection between Sarajevo and Belgrade with a railway capable of speeds of 120 km/h. The construction of a new railway between Valjevo and Loznica will connect that region with the Belgrade-Bar railway. This is almost 1.7 billion euros of investment just in infrastructure, which will be a significant project.
The biggest concern for some members of the public is exactly what you mentioned—the fear of environmental impact. So, do you believe that it will be done according to European standards and in partnership with European companies to alleviate these concerns, which might not be the case otherwise?
There have been many falsehoods spread about this. Unfortunately, the project has become part of a political battle. When something becomes part of a political battle, all means are used. We want to bring the discussion back to what it should be, which is to talk about all the environmental impacts. Be assured that our European partners, especially from Germany, will be actively involved because this is now their project as much as ours. We will certainly ensure that all standards are upheld in Europe, as they are in Serbia and the
How are the works progressing on the high-speed railway Novi SadSubotica, and will it be opened by the end of the year as announced? Yes, it will. It will be opened at the end of November or the beginning of December. By the end of this month, we will complete the high-speed railway, with only the station buildings remaining to be finished. For example, the Subotica station building will be completed by the end of August, the Novi Sad station is already finished, and the new station in Vrbas is nearing completion, among others.
The trains are here; these are Stadler trains that are already in operation. For the service to Subotica, we need new trains. The new Chinese trains, which are currently being certified in Prague to meet all EU standards, are important for the Budapest route. With the existing trains, we can easily maintain the schedule. The high-speed train will run every hour, stopping at four stations.
The focus is now on the Belgrade-Subotica line. What about the other branches from Belgrade, such as towards Zagreb via Šid, to Niš, and from Vršac to Timișoara? There was some issue with the Romanians, which caused delays.
That was a silly issue, I must say. When our railway companies were divided, there was an outstanding debt to the Romanian railways, and it wasn’t clear which company should pay it. I recently had a meeting with the Romanian ambassador, and representatives from my ministry went to Romania, and we are now resolving it. The railway towards Romania is being designed; we just completed the tender process for the Beograd-Vršac-Romanian border project, funded by the World Bank. I hope we can start reconstruction relatively soon.
That railway is currently active, with six departures daily, and it’s quite decent within the current framework.
As for the Belgrade-Šid railway, we’ve completed the project; it is designed for a speed of around 200 km/h. However, we won’t proceed with this railway until we get a response from Croatia about whether they want a high-speed railway or not. I had a meeting with the Italian Minister of Transport, met with Slovenian Minister Malenka Bratušek, and spoke with Austrian colleagues.
Goran Vesic u razgovoru sa Robertom Cobanom
THE FACT IS THAT WE HAVE SEEN A 22% INCREASE IN THE CONSTRUCTION
INDUSTRY IN THE FIRST QUARTER OF THIS YEAR
Let’s touch on the real estate market. How can we maintain the quality and price level of real estate in conditions of hyperproduction, especially in the most sought-after locations such as Belgrade, Novi Sad, Zlatibor, Kopaonik, and recently Vrnjačka Banja and other places in Serbia? The market needs to handle this.
The fact is that we have seen a 22% increase in the construction industry in the first quarter of this year in current prices. Overall, there was an 8.30% increase in the number of completed works. We are one of the few countries experiencing this growth. This is a result of the elimination of conversion fees, which freed up many locations. We have also worked to introduce green building certificates through amendments and additions to the law.
This means that from 2026, all buildings larger than 10,000 square meters must be constructed according to green building certification standards, using one of several global certificates. Firstly, ecological materials must be used, and there is an additional verification process. To obtain a certificate, a project must be certified. We are working with the Faculty of Civil Engineering and the Faculty of Technical Sciences in Novi Sad to prepare a project for a domestic green building certificate. This will be great to have, but it will take years to fully implement. All those who build according to green building certifications will receive a 10% discount on the construction land they purchase.
We want to encourage quality construction and ecological building practices, including the use of ecological materials. This is something we are preparing for. From 2028, everyone who wishes to design will have to do so using the BIM model, which is the latest model in the world. Perhaps only one or two EU countries require designing in the BIM model as Serbia does, putting us ahead of many countries. This model allows for higher quality and easier construction, helping to avoid conflicts during the building process, which is fantastic.
Remember, within the next eight years, no property in Serbia will be able to be sold without an energy
passport. For new buildings, the energy passport is a mandatory part of the purchase agreement. By August 2026, all state-owned companies and buildings must have an energy passport. For example, this building we are in will need one. Two years later, all company-owned buildings must have precise information about the building’s energy properties by 2033, so buyers know what they are purchasing and whether they will spend a lot on heating or cooling.
This is not the case now; people often buy a “pig in a poke.” This is very important for citizens. All these changes have been introduced through amendments to the Planning and Construction Law.
Another topic in the public eye is EXPO 2027. What exactly is the timeline for preparing for the EXPO 2027 world exhibition, as it seems there isn’t much time left? This includes roads, railways, the national stadium, the new fairgrounds, the natural history museum, etc. There are a lot of different pieces of information in the public domain, so it would be good to have everything from your ministry’s perspective in one place, as much as possible at this moment.
Regarding EXPO, my ministry is responsible for the railway. We will start working on the railway at the end of this month and aim to complete it by the end of 2026. The railway will go from Zemun Polje, cover the centre of Surčin, the national stadium, and Nikola Tesla Airport, which is very important for us. According to EU standards and new directives, in the coming years, all airports with over 12 million passengers must be connected by rail. We anticipate that Nikola Tesla Airport will handle over 10, and possibly over 12 million passengers within the next 3-4 years.
EXPO 2027 IS EXTREMELY SIGNIFICANT FOR SERBIA’S IMAGE
We’ve published it in Slovenian, Serbian, and English. Pearson, one of the largest textbook publishers in Europe, published it. I expect the book to be available in Slovenia and Serbia within the next month. I’ll be teaching as a guest lecturer at the University of Maribor and will start focusing on that.
This is significant for you, for example, as you could travel from Novi Sad to the airport by train once the railway is completed.
One of the questions on social media was about this. Currently, Novi Sad does not have a direct bus connection to Belgrade Airport. This will be much more convenient; you can get off at Zemun Polje station, catch a train every 10-15 minutes, and you’re there. Tomorrow, people from Niš or Valjevo won’t need to use their cars, which is very important.
EXPO 2027 is extremely significant for Serbia’s image. That year, we will be the business centre of the world. We expect 3.5 million tourists in Belgrade alone during the EXPO. These are wealthier tourists who will explore other parts of Serbia, and some will return. Moreover, this event is a development opportunity for Serbia. It’s always amusing when I hear some people say that EXPO isn’t important. Both the Americans and the Spaniards competed for this EXPO. If it was important to them, it should be important to us.
In addition to regular state duties, you’ve often been present in the public eye as an author of columns and books, mostly on the topic of Belgrade. Is there anything else you’re focusing on, and what can we expect soon from that segment?
Firstly, I’m about to sign a contract with a Chinese publisher for the printing of my book about Belgrade in China. I’ve already published it in Chinese, but only in Serbia. Secondly, along with Miha Marič, my colleague from the University of Maribor, I’ve released a textbook on the use of social media in political campaigns. Miha helped me a lot by adapting my text into a textbook format.
As someone on the Serbian political scene who was one of the earliest and probably the most extensive users of social media, even those initially considered unsuitable for our generation (laughs) This book is interesting because it’s based solely on my examples. Each story has its barcode, so as you read the book, you can scan the code with your phone and watch the examples. I believe it’s one of the first such books in Serbia. I’ll also start teaching at several universities. I already have one book, co-authored another with Miha that has already been published in Slovenia, and by the end of the year, I’ll be a co-author on another book, so I’ll have three books, three textbooks, which allows me to pursue an academic career, something that hasn’t interested me until now.
I’m hoping to release my memoirs for the book fair. I’ve been on the political scene for a long time, and a part of life needs to be documented before I forget it (laughs). I’ve been in politics since 1989, and it’s been over 30 years, so it’s time to record it. The memoirs will cover my political work from 1989 to 2013, focusing on those 24 years.
Journalist Aleksandar Apostolovski and I had the idea for this book; he turned it into 26 or 27 stories. These aren’t classic memoirs; they do cover my political career, but they are not about my personal life. The book will be published by Prometej from Novi Sad, my publisher, and I hope it will be ready for the book fair. You’ll read stories about October 5th and various events and personalities, from Đinđić to Schröder, Dick Cheney, Blair, Ratko Mladić, Radovan Karadžić, Vuk Drašković, Sloba Milošević, and Mira Marković. It will be my perspective on those events. Every such book is subjective, as it’s based on personal accounts, but I hope it will be interesting. Next year, a third book on Belgrade will be published. I write columns in Politika every Friday, and then we select the best ones to publish as a book, so there’s no need for additional writing. Those are my publishing plans for the future.
ELEVATED COASTAL LIVING: THE PEAKS, LUŠTICA BAY
Luštica Bay, Montenegro’s emerging destination redefi nes coastal indoor-outdoor living with the country’s fi rst golf course and residences, The Peaks. The destination’s most luxurious development to-date offers a collection of residences atop dramatic cliffs overlooking the Adriatic Sea.
Inspired by the beauty of its surroundings, The Peaks combines modern architecture with traditional influences to create a neighbourhood that is timeless and sophisticated. Its first collection of residences, Botanika, comprises villas, townhouses and apartments, designed by internationally acclaimed architects Block 722 and local design firm NRA Atelier.
The residences boast soaring ceilings and open-concept layouts, inviting the outdoors in at every turn. From private pools to landscaped terraces, the thoughtful layout and high-end amenities maximise true indoor-outdoor living. With its elevated position between UNESCO protected Boka Bay and the Adriatic Sea, the development’s Gary Player Design 18-hole golf course joins an elite group of under 10% of the world’s golf courses with sea views from every hole, establishing Montenegro as a premier golfing destination.
Complementing The Peaks, the wider town of Luštica Bay provides a vibrant hub of dining, shopping and entertainment for both sightseers and adventure-seekers. Combining modern luxury with authentic Mediterranean charm, the development is the ideal destination for both short and long-term visitors to explore Montenegro’s stunning natural landscapes and rich cultural heritage. Now bolstered with its upcoming championship golf course, Luštica Bay continues to expand its offering of world-class sporting facilities, establishing itself as a premier destination for all.
STUNNING VIEWS IN EVERY DIRECTION, FROM THE TEE TO THE SEA
Not only will The Peaks be the home of Montenegro’s first ever golf course, the course at Luštica Bay will join an exclusive international cadre of courses which boast a scenic view from every hole: something that fewer than 10% of golf courses in the world can make a claim to. The natural topology of the terrain allows for a course that offers something for players of all levels and abilities. So, whether
you’re a seasoned pro or just getting into the swing of things, you’ll want to return round after round. To commemorate its visionary construction, Luštica Bay proudly hosted its inaugural event with sporting legend and leading voice in golf course design, Gary Player – including taking the first symbolic swing.
The property’s natural beauty is extraordinary – with its rugged terrain, diverse wildlife, and Adriatic Sea views. Its development has demanded innovative solutions but also unparalleled opportunities, enabling us to create a course that will offer golfers a truly unique journey. It is with great pride that we’re expanding the game of golf to Montenegro…if I had to have a house on any golf course in the world or a villa, this would be my place have spent the majority of my professional career expanding golf around the world and always felt that it is important to create new opportunities for golfers to enjoy the game in new and exciting ways. No doubt the challenging landscape of Luštica Bay will offer a unique experience for golfers to test their skills and improve their game. By opening up this course in Montenegro, we are not only bringing the beauty of the sport to a new location but also providing a platform for golfers to push themselves and grow in their abilities.“I am excited for the opportunity Luštica Bay will bring through creating a new golfing destination in an area where our sport is underserved, said Gary Player.
HORIZON RESIDENCES
WHERE SKY MEETS SEA
Introducing Horizon, an exclusive hillside neighbourhood where the beauty of the Adriatic Sea meets the vastness of the sky. Here, every hillside residence is a testament to thoughtful design and boundless natural beauty. Each one is a masterpiece of Mediterranean design, featuring terraces that invite you to linger, pools that beckon for a refreshing dip, and private spaces that offer breathtaking, uninterrupted views of the marina and sea, extending to the horizon.
LIFE AT THE SUMMIT
Life at Horizon means enjoying the finest details. Picture homes built from warm Luštica stone, accented with Mediterranean shutters and distinctive roofs. Interiors feature earthy tones that complement the stunning blue views, creating a serene and elegant atmosphere. Each view has been carefully choreographed and framed by an
arched portico or pergola entwined with honeysuckle tendrils. Think artfully tiered pool terraces, lush gardens with olive and lemon trees, and winding staircases overlooking the sea.
THE ART OF LIVING
Horizon isn’t just about where you live; it’s about how you live. Engage in outdoor adventures, find peace in tranquil corners, and enjoy a community that blends modern amenities with traditional charm. From dynamic Luštica Bay activities to serene private moments, Horizon offers a life reimagined.
REALISTIC PRICES ARE THOSE THAT HAVE BEEN ACHIEVED
The apartment market in Belgrade is too large and too inert to expect significant changes in the short term
We spoke with Miodrag Gazibaba, the Director of the consulting company Cordon, about the current developments in the real estate market in Belgrade and Serbia
What is the current situation in the real estate market? Have prices calmed down?
The situation in the real estate market, specifically apartment sales, is stable, but it is evident that the number of transactions on an annual level is lower compared to 2022, which was a record year when the volume of apartment sales in Belgrade alone amounted to 2.6 billion EUR. Since January 2023, a decrease in the number of transactions has been felt, which has also caused a slight drop in prices, primarily among investors selling apartments under construction, where discounts of 2-5% compared to 2022 prices are more commonly offered. This price difference can be considered more of a price correction rather than a drop, and it is not talked about enough because it seems that some market participants expected, and still expect, a larger drop. However, there is certainly no price growth across the entire market as was the case in previous years when prices grew by as much as 10% annually.
How realistic are the prices? Not only are they high, but the market shows almost no logic. Apartments in neighborhoods that do not offer a quality lifestyle are valued highly, simply because they have historically had a good reputation.
THIS PRICE DIFFERENCE CAN BE CONSIDERED MORE OF A PRICE CORRECTION RATHER THAN A DROP
Realistic prices, in our view, are those that have been achieved, and historical data is always looked at for this. It is enough to look 6-12 months back to estimate which prices were realistically set based on completed transactions. For some people who only observe the real estate market, prices have long been illogical. However, it is obvious to market participants that a large number of buyers purchase apartments as investments, and their reasoning is different from buyers who purchase apartments for themselves. According to data from the RGZ (Republic Geodetic Authority), cash transactions make up about 75% of the total market, which shows how many investment buyers there are. For most buyers, the process starts with location, hence the old mantra:
MIODRaG GaZIBaBa Director of the consulting company Cordon
location, location, location. Based on this crucial criterion, investors manage to charge high prices per square meter in good locations, even if the quality of construction or the quality of life does not meet the expectations of some buyers. Demand is the only true element that drives up the price per square meter, and there will always be demand for good locations.
In our opinion, conditions for a different way of thinking have long been established: location, critical mass, and concept. This means that location does not have to be the only parameter and that it is possible to offer a larger complex that provides a better living concept in a location that is not prestigious. There are also market examples of this way of thinking.
Does snobbery drive up the price per square meter?
The total volume of the apartment sales market in Belgrade last year amounted to about 2.1 billion euros, and we do not see snobbery significantly affecting the overall market. Snobbery exists everywhere in the world and is generally associated with certain parts of the city. In Belgrade, these areas include Upper Dorcol, parts of the city centre, parts of Vračar, parts of Senjak, and parts of Dedinje. These locations will always be prestigious and attract a small segment of buyers who want to follow the larger market, but we do not believe this influences price increases.
THE
TOTAL VOLUME OF THE APARTMENT SALES MARKET IN BELGRADE LAST YEAR AMOUNTED TO ABOUT 2.1 BILLION EUROS
What truly drives price increases is high demand, or more precisely, the impatience of buyers. Most purchases you will see in the upcoming period reflect impatience that has built up over the years, and this is part of the explanation for the market’s apparent illogicalities.
A typical investment buyer accumulates funds for an apartment purchase over many years, during which impatience grows to invest the funds and start generating income from that investment. In this impatience, different criteria for construction quality emerge, meaning less attention is paid to quality during the purchase.
Buyers purchasing for themselves have much higher expectations, but in this context, they also have far fewer options that meet all the conditions regarding location, quality, and price at the beginning of the process. Many of these buyers spend several years searching for the right property before they manage to invest their funds, often making compromises compared to their initial wish list.
We have drastic examples of poor apartment construction, which often destroys precisely what should be raising the price per square meter. For example, Zlatibor –has always been valued for its nature, but now it’s almost gone. Similar examples are found in Belgrade, Novi Sad, and throughout Serbia.
Inadequate construction quality is a common occurrence in our real estate market, and this is also a consequence of high demand. In previous years,
demand was so high that investors could sell all apartments even before construction began, meaning buyers could not see the construction site or enter the apartment they wanted to buy. This situation allows certain investors to save on construction quality.
Of course, some investors care about their reputation and invest in construction quality. Although this may be a smaller part of the market, there is a slight increase in investments in quality. The more a project or a place like Zlatibor becomes interesting to investment buyers, the greater the chance of encountering lower construction quality. However, there are certainly more examples of quality construction now than there were 5-6 years ago.
What is the situation with real estate prices in Serbia? Apart from Belgrade and Novi Sad, where else do we see a rise in prices and demand? We do not see many examples of price increases in the last 18 months, but it is evident that certain projects and certain investors have managed to maintain a portion of the demand. In previous years, it seemed that all investors were doing well, but in the current market, differences in demand are now visible. This reveals who manages to offer the right balance between quality and price. We see examples of residential projects outside Belgrade and Novi Sad in good locations, but we have not noticed a price increase. Instead, we observe a similar trend where some investors manage to retain part of the demand, while others find it more challenging.
Has the drop in interest rates for housing loans increased the sale of apartments on credit?
The total number of housing loans has increased slightly, so we see this more as a correction rather than growth. It seems that the market has simply adapted to the new reality and high interest rates, as the percentage of loans in arrears is extremely low, despite the evident rise in interest rates over the past two years.
How do you predict real estate market trends until the end of this year?
The apartment market in Belgrade is too large and too inert to expect significant changes in the short term, so we do not anticipate any major shifts in the overall market by the end of the year. What is evident is the absence of a certain segment of buyers who expected larger discounts in the past 18 months, which did not happen. It appears that interest rates will gradually decrease, leading to increased demand. Additionally, we believe there will be a rise in demand at some point, driven by impatience and accumulated funds that have not been invested in the past 18 months since the market slowed down.
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INVESTING IN REAL ESTATE: SHIFTING BOUNDARIES
It seems that many market participants want to somehow join the growth that EXPO 27 will bring
In the distant year of 2005, few people wanted to live or work in New Belgrade in the area between the highway and the Sava River. At that time, for most people, Omladinskih Brigada Street marked the boundary and the end of New Belgrade. Today, it is becoming the central part of New Belgrade, as the city is rapidly expanding towards Surčin and the future EXPO 27 project.
For most investors and apartment buyers, there are certain mental barriers, boundaries they wouldn’t cross, and this is how the real estate market functions in every major city worldwide. Mental barriers include bridges, highways, large parks, and wide boulevards. In Belgrade, some mental barriers are obvious to everyone, such as the Danube River and the bridges that cross it. In those parts of the city, the price per square meter is significantly lower than on the other side of the bridge. Some people are divided between the old part of the city and New Belgrade, holding clearly defined views that they would not live on the side of the Sava River that doesn’t suit them. The decision to live in New Belgrade is pragmatic because you don’t waste time commuting to work, you have shopping centres nearby, and two rivers, but you don’t feel like you can go outside and take a walk; instead, you get in your car for all needs. Living on the other side of the Sava River is an emotional decision be-
cause much is sacrificed in daily life due to the distance from business buildings and parking issues, but those parts of the city “have a soul.”
The shifting of boundaries that existed in New Belgrade began in 2007 with the construction of Delta City, and already in 2009, the residential complex Belville with 1,900 apartments (priced then at around 1,700 to 1,900 EUR/m²) was built. At that time, the Airport City business complex had already completed two phases, covering nearly 40,000 m². The main reason this mental barrier shifted for some property buyers is that these projects were completed in a very short period, and EXPO 2027 partly mirrors that situation. The impact a shopping centre can have on a city is best seen in the example of Delta City in Podgorica, where almost no one wanted to live “on that side of the river,” but today the situation is significantly different.
MENTAL BARRIERS
INCLUDE BRIDGES, HIGHWAYS, LARGE PARKS, AND WIDE
BOULEVARDS
Today, with the real estate market in Belgrade slowing in transaction volume, though not so much in prices, construction and sales on Omladinskih Brigada Street are ongoing at prices of 3,500 EUR/m²
Photo: Enis Omeragic
plus VAT and higher. Some investors are building their second phases or new projects in that street, giving the impression that they are satisfied with the transaction volume in that part of the city.
Mental barriers also operate on smaller scales, and perhaps the easiest to explain is the Upper Dorćol example, which is bordered by Piarron de Mondésir Street, Tsar Dušan Street, Francuska Street, and the streets connected to Students Square. The situation in Vračar is not so clear, with many investors claiming to have projects “in the heart of Vračar.” The price of new construction in Upper Dorcol is now between 5,000 and 6,000 EUR/m² plus VAT and higher while crossing the “boundary” of Cara Dusana Street to Lower Dorcol, prices are significantly lower, around 3,000-3,500 EUR/m² plus VAT. This mental barrier will be completely broken when the first phase of the Dorćol Marina project is built, which is behind another mental barrier, Dunavska Street. Parcels for construction along the future linear park, i.e., Dunavska Street, have already been purchased, so apartment prices in Lower Dorćol will start to rise in the next 3-5 years.
THE FUTURE EXPO HAS AWAKENED PROJECTS THAT HAVE BEEN IN THE URBAN PLANNING PHASE FOR OVER 10 YEARS
The mental barrier known as Omladinskih Brigada was already moved a few years ago when apartment buyers, due to high prices in this street, “agreed” to go as far as Tošin Bunar Street, where current prices range from 2,700 to 3,000 EUR/m² plus VAT. For apartment buyers in Omladinskih Brigada, it is likely sufficient that a large portion of office space and Delta City are within walking distance, and they might not be aware of future projects in the direction “towards Surčin,” which will one day transform this street into the central zone of New Belgrade. Near this central street of New Belgrade is the plot of the former IMT factory, over 30 hectares, where approximately 1 million square meters will likely be built. The shifting of boundaries concerning office space has already begun with new projects currently under construction. AFI City Zmaj is a new business park located on the highway
extending from Bežanijska Kosa near the popular Zmaj gas station, which will eventually have nearly 200,000 m² of office space for lease.
On the other side of the highway, the Green Escape business park is under construction, which will have over 60,000 m² of office space. For comparison, Airport City currently has 140,000 m², so apartments will be built where offices are located.
The future EXPO has awakened projects that have been in the urban planning phase for over 10 years, such as the Singidunum project on 250 hectares in Dobanovci, where both industrial and residential contents are planned in large quantities, as well as a project with golf courses and luxury apartments in the Becmen settlement. The private sector is quite quickly following the state.
When talking about hundreds of thousands of square meters and hundreds of millions of euros, phased construction is particularly important. The state must complete its part at once due to its obligations to international organizations, while all private investors reduce risk by building their projects in phases.
In the past 20 years, foreign investors needed to arrive, who buy parcels for construction by looking at the city map and measuring distances in minutes, not relying on advice from local experts explaining “what our people like.” Now, it seems that many market participants want to somehow join the growth that EXPO 27 will bring. The city is certainly growing in that direction, but any investment in real estate requires caution in planning the future and the pace at which that future is built, while only the monthly costs are certain.
One of the reasons apartments are bought in Belgrade is because the cost of an empty property is acceptable; property taxes are not the same as in developed markets, and monthly costs currently do not include an investment fund for capital investments and facade renovations. Therefore, it can be expected that apartment investors in Belgrade will also participate in the growth that comes with the EXPO project.