Real Estate 2023

FOCUS ON

REAL ESTATE

URBANISM & CITY PLANNING

March 2023

The Hawk train (Soko), the most modern train in the region, celebrated its first birthday. During the first year of operations, almost three million people were transported by the high-speed railway between Belgrade and Novi Sad, and 19,604 departures were made in both directions.

© Goran Vrhovac / Shutterstock

WE ARE INFRASTRUCTURALLY CONNECTING OUR CITIES

The arrival of a substantial number of Russians and Ukrainians in Serbia resulted in a higher real estate demand in Serbia. We spoke with Goran Vesić, Minister of Construction, Transport and Infrastructure in the Government of the Republic of Serbia, about the reason for higher real estate prices, the effect that construction of road infrastructure has on people’s lives and how the accelerated traffic development can contribute to the popularization of smaller towns.

It is noticeable that, after a long time and apart from Belgrade, other towns in Serbia have become popular in terms of migration like Novi Sad, Niš, Kragujevac and several other towns that are attracting a growing number of apartment buyers, which is also reflected in real estate prices in these towns. What is the main reason for this real estate boom in smaller Serbian cities?

The development of transport infrastructure, as a result of the construction of motorways, expressways and railroads, connects our cities. Today, it takes you 35 minutes to travel between Novi Sad and Belgrade thanks to a high-speed train, so it’s no wonder that 1.5 million passengers took this opportunity in the space of 11 months. Almost 2,500 passengers bought monthly tickets for the Soko high-speed train that commutes between Belgrade and Novi Sad. These are people who work in one city and live in another, which means that, apart from Belgrade, other cities are becoming attractive for life and work. Traffic links between cities benefit the

The market always responds to increased demand with a larger offer

Goran Vesić, Minister of Construction, Transport and Infrastructure in the Republic of Serbia’s government

development of tourism too. There is a tendency for tourists who come to Belgrade to stay in neighbouring cities. That’s why the hotel occupancy rate in Novi Sad and Pančevo is higher than in Belgrade. Tourists who spend a night in Novi Sad will visit tourist attractions in this city. This leads to a higher demand for apartments in cities that are connected to Belgrade by traffic, and hence higher real estate prices in them.

How important is the development of infrastructure for the popularity of smaller cities outside the Belgrade area?

The development of infrastructure leads to smaller towns in the vicinity of Belgrade becoming more popular for living and as weekend destinations. The COVID-19 epidemic and travel ban have led to many people discovering various places in the countryside that were suitable for vacations or have built or bought houses there. When the epidemic subsided, people kept their new habits, so Belgrade is now an almost empty city during weekends, as it used to be in July and August, as its residents have

gotten used to going to the countryside on Saturdays and Sundays. It won’t be that long until the development of infrastructure will result in some of to-

make parts of Zemun and Bežanijska Kosa more attractive too. Simultaneously with the construction of the subway, new suburban railway lines

day’s suburban areas or surrounding towns becoming places of residence for people who work in Belgrade.

Based on the current infrastructural works and the planned completion of motorways and railways, which new popular areas for living and working outside Belgrade could emerge in the coming period?

The construction of two subway lines, which will be completed in 2030, will make parts of the city that are not currently attractive for housing quite appealing. Here, I am primarily referring to Mirijevo, which is the departure station for the first two lines, then Železnik and Žarkovo, as well as Banovo Brdo and Čukarička Padina. The second subway line will

of the popular BG Voz, which should have over 500 departures daily, will be built. Next year, the first part of the new BG Voz lines from Zemun station to Nikola Tesla airport, via the national stadium and Surčin, will be built. This line will later be extended to include Obrenovac. In the meantime, the capacity of the BG Voz, i.e. the line to Barajevo and Lazarevac, as well as the line to Sopot and Mladenovac, will be expanded. The BG Voz’s line from Ovča to Pančevo will be extended too. When all these suburban municipalities are connected to the city centre, i.e. by the subway via the city railway and when they have 20-25 departures per day, then it will be possible to live in Lazarevac and work in Belgrade.

What do you think about the trend of building residential areas outside Belgrade’s urban core (like Avala, Kosmaj, Banovci and Fruška Gora)? Are people going to leave urban areas for the countryside in droves?

This has already been happening since the COVID-19 epidemic when people discovered the countryside as cities were quarantined. Many who worked from home left the urban areas. This habit is still in practice so, in recent years, Belgrade empties on weekends, just like in the second half of July and the first half of August, i.e. during summer time. Now, people are more prone to going to the countryside on weekends and holidays. Many of them have moved so that the former weekend residences in the vicinity of Belgrade have become places where people now live full-time. With the accelerated development of the traffic infrastructure, the construction

THE CONSTRUCTION OF TWO SUBWAY LINES, WHICH WILL BE COMPLETED IN 2030, WILL MAKE PARTS OF THE CITY THAT ARE NOT CURRENTLY ATTRACTIVE FOR HOUSING QUITE APPEALING

of the Belgrade bypass and the development of the city railway, many now suburban parts of the city, including Avala and Kosmaj, will become places to which people will flock to live.

We have to mention the problem of illegal construction and so-called developers’ urban planning where the public interest is neglected to the detriment of private capital. How can we solve problems like the one with the Sava Embankment, for example?

Illegal construction is not the same as developers’ urban planning, so the two terms should not be confused. Illegal construction is when you build

without a permit and it is a criminal offence. I would like to see the abolition of one of the two relevant laws that are currently being implemented simultaneously - the Urban Planning and Construction Law and the Legalization Law because as long as we have a situation like this, part of real

lobby of illegal builders is very powerful. In our country, the term developers’ urban planning implies that someone who builds imposes their interest on the public. First of all, every real estate developer has to operate in line with their building permit which is issued based on urban plans adopt-

estate developers will resort to illegal construction instead of legal one. We’ll see what happens, that is if I get support for my initiative, because the

ed by the state, so that a developer cannot subordinate the public interest to the state. Only the state authorities can do that. And for this not to happen, we have an early and public review in the process of adopting the said plans, which involve the public. Of course, urban plans must protect the public interest, but the phrase “developers’ urban planning” often hides the intention not to build anything that is not possible. The case of the Sava Embankment is an issue for the Belgrade government to resolve.

Global prices of building materials have fallen and yet the prices of newly built apartments in Serbia are still high. Will this global trend come to Serbia or are real estate prices in our country stimulated by huge demand?

You are right when you say that the prices of real estate are dictated by the prices of building materials, but above all, by supply and demand. While the war in Ukraine lasts, we see a decrease in real estate investments due to real estate developers’ fear to invest, because the prices are constantly going up and housing loans becoming more expensive. The influx of refugees from Ukraine and Russia to Belgrade is large, so the demand for apartments has grown which caused a hike in prices in both Belgrade and Novi Sad. The market always responds to increased demand with a larger offer, so I believe that real estate prices will fall in the coming period.

URBAN PLANS MUST PROTECT THE PUBLIC INTEREST, BUT THE PHRASE “DEVELOPERS’ URBAN PLANNING” OFTEN HIDES THE INTENTION NOT TO BUILD ANYTHING THAT IS NOT POSSIBLE

A DRASTIC INCREASE IN THE DEMAND FOR APARTMENTS FOR RENT

The negative consequences of the war in Ukraine will not affect our real estate market, in a way similar to what is happening in some Western countries

of people coming from these countries still bought real estate in Serbia.

Until 2022, about 99% of buyers in the Serbian real estate market were Serbian nationals and only about 1% were from abroad, mostly from the Republic of Srpska, Montenegro, Greece and the UAE. The biggest obstacle to having more foreign real estate buyers in our country is the absence of a law that allows foreign citizens who invest the appropriate amount of money in real estate in Serbia to be given permanent residence in the Republic of Serbia. Almost all developed Western economies have such programmes - the USA has the EB-5 Immigrant Investor Program, while Portugal, Greece and many other European countries have the Golden Visa programme.

that was invested in real estate. The real estate market was very active even then, and prices were significantly higher than in the neighbouring countries that were not affected by the war.

In 2022, a substantial number of people from the Russian Federation, Ukraine and Belarus came to Serbia. They have contributed to a drastic increase in the demand for apartments for rent, but also for business space because many of them have moved their business to Serbia. This has led to a large increase in rent. In late 2022, the rental real estate market stabilized, but the market prices remained at a significantly higher level than in 2021. Citizens of the Russian Federation and Ukraine who came to Serbia could not easily take money out of their country, so they did not have a significant influence on the real estate market in Serbia. A smaller number

Our citizens and businesses buy real estate as the safest type of investment out there. Unlike other countries of the socialist bloc, the former Yugoslavia had the institution of private ownership of the real estate, residential and commercial buildings and agricultural land, which could be freely traded with. Due to inflation, which was high at the time, people bought real estate to preserve the value of their capital.

During the 1990s wars and sanctions, people kept their foreign currency savings at home or used it as capital

In the developed European economies and the USA, over 80% of real estate transactions are financed from loans, which is why the decline in economic activity, the increase in unemployment and the uncertainty caused by the war usually lead to a decrease in the real estate market turnover. This is not the case in our country, given that in Serbia, cash is mostly used in real estate transactions. Most of real estate buyers are ordinary people who previously sold a property and want to invest the funds they got from that in buying another piece of real estate. It has been estimated that in our real estate market, the purchase and sale of three to five other properties in this sale/purchase chain are financed with the funds obtained from the sale

of one property. The sale of the first property “in the chain” is financed from a loan, or from the money that our citizens living abroad send to their family/friends, and these are usually the funds they take from their savings accounts.

In the previous decade, despite the stable dinar/euro exchange rate and good macroeconomic indicators, the

Nenad Djordjević, Chairman of the Governing Board of the Association Real Estate Cluster

IN 2022, ONLY 11% OF REAL ESTATE TRANSACTIONS IN SERBIA WERE FINANCED FROM LOANS

share of real estate transactions financed from loans was between 15 and 16%. In 2022, only 11% of real estate transactions in Serbia were financed from loans. The purchase of apartments was mostly financed from housing loans, so in 2020, over 31% of apartment purchases were financed from loans, and in 2022, that percentage was 26.

We can conclude from all of this that the negative consequences of the war in Ukraine will not affect our real estate market, in a way similar to what

In our country, the fall in the number of buyers who financed the purchase of real estate from loans in 2022 was compensated by an increase in the number of our citizens who, due to fear of the crisis caused by the war in Ukraine, withdrew money from their savings accounts and invested it in real estate, as well as by an increase in the number of foreigners in Serbia who bought real estate. Many of our citizens living abroad used their foreign currency remittances to buy real estate in Serbia, fearing the escalation of conflicts in Europe.

residential and commercial buildings in the next two years, which, in turn, will shrink the real estate offer and affect price growth.

is happening in some Western countries. In many Western countries, including the USA, which has the largest real estate market in the world, the market is stable and growing, regardless of the war.

Due to the increase in the price of building materials and building land, there was a decrease in the number of building permits issued in 2022, which may lead to a decrease in the amount of newly built

The draft Law on Amendments to the Planning and Construction Law proposed by the Ministry of Construction, Transport and Infrastructure prescribes the abolition of the fee for the conversion of the right of use into the right of ownership of building land for certain types of companies. Public companies that have not yet been privatized, cooperatives, enterprises that own property that is the subject of a succession process in the former Yugoslavia and sports associations will not be entitled to this right. After the adoption of the proposed amendments to the law, the supply of building land will increase, especially in Belgrade and other major cities in Serbia, which will lead to the stabilization of the real estate market and continued growth of the construction sector.

What do Serbian real estate brokers want?

The draft law stipulates that notaries public and companies engaged in drafting spatial and urban planning documents will be entitled to issue information on location conditions. Up until now, this was in the hands of the state administration.

The Association Real Estate Cluster has appealed to the line Ministry to give real estate brokers the right to issue information on location conditions. Two years ago, we launched an initiative with the Serbian government to amend the Law on Real Estate and Utility Cadastre Registration to enable real estate agencies to issue an extract from the Real Estate List, so that both citizens and businesses can do what they need to do in one place, thus facilitating the process of buying and selling of real estate.

MANY OF OUR CITIZENS LIVING ABROAD USED THEIR FOREIGN CURRENCY REMITTANCES TO BUY REAL ESTATE IN SERBIA, FEARING THE ESCALATION OF CONFLICTS IN EUROPE

REAL ESTATE PRICES IN SERBIAN MARKET

Apartments are sold the most and make over 55 percent of sales of all other types of real estate

Milić Djoković, Vice-President of the Expert Council of the Association Real Estate Cluster

Growing prices and increased money supply compared to all previous periods are the main characteristics of the real estate market at the moment. The strong double-digit annual growth in apartment prices continued in the fourth quarter of 2022 and lasted throughout the year.

The annual growth rate of apartment prices in the Republic of Serbia stood at 13.7% in the fourth quarter of 2022, while the prices of apartments in Q4 compared to the Q3 of 2022 increased by 3.3%.

In terms of price dynamics, a more significant increase of 16.1% in the Q4 of 2022 in the prices of apartments in older buildings was noticeable. In terms of new apartments, i.e. buying

(index value 148.40) are in the lead. Novi Sad is the champion of price increase, where average prices of apartments now range between 2,000 to 2,500 euros per square metre, while in

real estate directly from the developer, there was a slowdown in the Q4 of 9.3% (vs. 10% in the third quarter of 2022), with relatively higher prices of newly built apartments compared to those in older buildings. In terms of the price index, in the Q4 of 2022, as in the previous period, Vojvodina (index value 151.32) and the city of Belgrade

Belgrade, the prices range from 2,000 to 10,000 euros per square metre. The average price of a square metre of a new apartment is 2,500 euros, while the average price of an apartment in an older building is 2,000 euros. As in the previous few quarters, somewhat more dynamic growth has been recorded in the regions of Southern

IN 2022, THE TOTAL VALUE OF THE SERBIAN REAL ESTATE MARKET EXCEEDED SEVEN BILLION EUROS

All photos: © Shutterstock

and Eastern Serbia, where the annual growth rate in Q4 was 15.1% (slightly lower than in the third quarter of 2022, when this rate was 15.8%).

In Vojvodina and Belgrade, where the prices are relatively higher compared to the Serbian market average, comparable price growth rates in the Q4 of 2022 remained at the Q3 level and stood at 13.6% and 14.4% respectively.

The number of apartments sold in the Q4 of 2022 went up by 0.6% compared to the same period in 2021. Considering that prices are still growing strongly, as well as the share of sold apartments in the (more expensive) regions of Belgrade and Vojvodina (10.6 % and 2.3% respectively), the total value of the market, measured by the sum of realized apartment sales, grew at a record percentage in 2022, i.e. by 36% year-on-year.

In the previous period, compared to international trends, the housing

price index in Serbia had a similar growth trend as some of the countries in the region (Croatia, Slovenia, Bulgaria), in contrast to countries such as

The most attractive real estate regions are Belgrade, Novi Sad, Niš, Kragujevac, Zlatibor, Kopaonik, Novi Pazar, Pančevo and Subotica. Newly built

NOVI SAD IS THE CHAMPION OF PRICE INCREASE, WHERE AVERAGE PRICES OF APARTMENTS NOW RANGE BETWEEN

2,000 TO 2,500 EUROS PER SQUARE METRE, WHILE IN BELGRADE, THE PRICES RANGE FROM 2,000 TO 10,000 EUROS PER SQUARE METRE

Germany, Sweden, Denmark and the Netherlands, which in the third in the quarter of 2022, recorded a price slowdown or even a decline (2.4% in the case of Denmark). The price index in the 27 EU countries indicates a slowdown in year-on-year price growth to 7.4% in the third quarter from 9.8% in the second quarter of 2022.

Apartments are sold the most and make up over 55 percent of sales of all other types of real estate. In 2022, the total value of the Serbian real estate market exceeded seven billion euros.

apartments are more popular with the younger population, while the older generations prefer apartments in older buildings.

To sum up, the market is in the socalled phase of overheating, but not yet boiling, and according to current indicators, it will continue to grow, at least within the framework of inflation in the eurozone.

THE WINNER OF THE STUDENT CITY –BELGRADE COMPETITION ANNOUNCED

With the support of the United Nations Development Program (UNDP), the Ministry of Education has launched a tender for the re-design of the Studentski Grad (Student City) complex in Novi Beograd, as well as the construction of new and reconstruction of existing facilities

The winner of the international public architectural/urban competition called Studentski Grad – Beograd was officially presented at the exhibition held at the Palace of Serbia.

Taking into consideration the need to increase the accommodation capacity of student dormitories in university centres, the Ministry of Education, with the support of the United Nations Development Program (UNDP), launched a tender for the re-design of the Studentski Grad (Student City)

complex in Novi Beograd, as well as the construction of new and reconstruction of existing facilities. The competition was conducted by the Association of Architects of Serbia. A

Architecture Studio from Turkey. The total prize fund was USD 56,000. Apart from the first prize, two competitors were awarded amounts of USD 7,000 each, and five USD 2,800 each.

THE TOTAL PRIZE FUND WAS USD 56,000

total of 21 applications were submitted and the jury, chaired by architect Grozdana Šišović, PhD, unanimously decided to award the first prize (in the amount of USD 28,000) to the Nous

Based on the selected solution, the next step would be to draft urban-technical and project documentation, after which the Ministry will launch a relevant tender for the execution of

the works. The Minister of Education, Branko Ružić, said that the work on the new building in Studentski Grad is done under the auspices of the Student Housing Project, which also entails the completion of the student dormitory in Niš.

“Our Ministry’s is to provide additional capacities and thus create good and economically acceptable conditions for student accommodation and in this way provide additional incentive to our young people to achieve their ambitions, because accommodation during studies is still one of the most important issues that students who come from other towns and their parents have to deal with. By building this dormitory in Studentski Grad, we will create 1,000 additional places to accommodate students in Belgrade, which is our largest university centre”, said the minister, adding that works should begin in the second half of 2024 after the urban planning and project documentation are drafted.

According to the minister, the estimated value of the works and equipment is around 26.5 million euros, and the funds are provided from the Republic of Serbia’s budget and loans from the Development Bank of the

dents through more affordable and improved accommodation.”

The competition’s special goal was to promote the principles of circular economy and sustainable green con-

THE COMPETITION’S SPECIAL GOAL WAS TO PROMOTE THE PRINCIPLES OF CIRCULAR ECONOMY AND SUSTAINABLE GREEN CONSTRUCTION, WITH LOW ENERGY CONSUMPTION, AND THEIR IMPLEMENTATION IN THE CONSTRUCTION OF BUILDINGS

Council of Europe (CEB), which has been supporting the activities on improving school and student standards in Serbia for years.

On this occasion, CEB’s Manager for Serbia, Nadežda Gročkova Leruste, said: “We, at CEB, are extremely proud that, in partnership with the Ministry of Education of Serbia, we can help to finance this large-scale project that will make education available to financially disadvantaged stu-

struction, with low energy consumption, and their implementation in the construction of buildings.

“By increasing the number of highly educated young people, we contribute to the development of a knowledge-based economy, which has a positive impact on the economy and society as a whole, as well as on the country’s future development“, said Yakup Beris, the UNDP’s resident representative in Serbia.

SUCCESS BASED ON OWN RESOURCES

From the acquisitions strategy and stable foundations for organic growth to a record-breaking leap into the very top of the market

The past year was a historic one for MPM in terms of achieved financial results, but also in regard to further boosting all our key business parameters. Here, I am primarily referring to people, because in our business segment of management and maintenance of all types of real estate and in meeting the highest quality standards which guide us, strong human resources are the core of success. That is why I am particularly proud of the fact that with the acquisition of Eurosecurity, which was completed in December last year, we practically doubled the number of employees so today we have over 1,200. We also had successful financial results – our company had record revenues which

tion works, thus rounding off the complete life cycle of a real estate, whether we are talking about office, industrial, retail or residential segment.

To what extent has the acquisition of Eurosecurity affected the portfolio of your services?

By integrating one of the leading companies in physical and technical security such as Eurosecurity, we have rounded off the portfolio of Facility Management services that we provide relying solely on our own resources. From the very beginning, this has been our business strategy and a desired goal, that is to integrate all FM services - which include hygienic and techni-

In 2022, the Marera Property Management company (MPM) made the most significant step forward in the domestic market in the multidisciplinary field of Facility Management (FM) services. The company practically doubled its business thanks to its acquisitions strategy and organic growth. The last in a series of successfully realized acquisitions was completed in December 2022, when MPM became the 100% owner of Eurosecurity - one of the leading domestic companies in physical and technical security. We spoke with MPM’s General Manager, Danilo Pušonja, about how did all of this affect the company’s business and what are the plans for the upcoming period.

Your company is one of the fastest growing in the domestic market. What does the MPM look like today?

grew by 150% compared to the year before. This, of course, is a reflection of both the results achieved in the FM service segment, as well as the results achieved by the company as a whole. In addition to providing quality FM services, MPM is recognized on the domestic market and in real estate management, which includes asset and property management, as well as supervision and execution of construc-

cal maintenance, security, reception, maintenance of green areas and winter services - into the large MPM system, and by coordinating all segments and optimizing processes to provide our clients with the top quality services. This has been reflected in our operations, where we consolidated all services and employees in one location. If we look at the annual change in terms of the size of maintained commercial and non-commercial properties, our portfolio has more than doubled to the current 1,100,000 square metres of maintained facilities. In addition to the size of our portfolio, we are continuing to expand our client network, which today numbers more than 300 companies throughout Serbia.

You have highlighted the essential importance of human resources in terms of providing top-quality ser-

INVESTING IN THE CONSTANT DEVELOPMENT AND TRAINING OF EMPLOYEES IS ONE OF OUR KEY PRIORITIES

Danilo Pušonja, General Manager of Marera Property Management

This approach, in the long run, generates savings and positively affects the financial results of the company that decides to engage experts to provide Facility Management services.

vices, how much do you invest in employee development and operational processes?

Investing in the constant development and training of employees is one of our key priorities. With the acquisition of Eurosecurity, we have added 500 new employees to our team and throughout the acquisition process, we are working in parallel on the integration of organizational structures and the implementation of MPM standards related to skills, certifications and train-

ing in equipment. We intently listen to the needs of our clients and the local market, while also following global trends, to systematically increase our business efficiency.

As a relatively young market segment in Serbia, but not in the world, how much recognition do the advantages of integrated Facility Management solutions receive?

This is a segment that is rapidly gaining importance in the domestic mar-

ers are the only point of contact for everything related to the facility’s functionality. This significantly reduces the time and resources spent by companies and sets clear lines of responsibility. After all, this approach, in the long run, generates savings and positively affects the financial results of the company that decides to engage experts to provide Facility Management services. Do you have plans to further expand your business trough additional acquisitions this year or is your short-term strategy to rely on organic growth?

ing of employees. Also, sales processes are unified and systematized into one-of-a-kind integrated systems. In addition to training new employees, we are continuously implementing programmes aimed at improving the skills of all MPM employees, to ensure the highest level of service. We also maintain continuity in terms of invest-

ket and more and more companies are realizing the advantages of this approach to facility maintenance, thanks primarily to multinational companies that have established this practice. The advantages of implementing integrated FM solutions are numerous, and I would like to underline in particular that service provid-

Our current focus is on the integration of two large systems, that is, the integration of Eurosecurity in all our systemic and operational processes. Also, we are quite sure that, in the near future, we will further expand our business network by opening the fourth regional centre in Kraljevo, which will greatly improve logistics and reduce operating costs. Bearing in mind all the aforementioned, we expect to see strong growth in performance and achieved results based on the existing structure, but we do not rule out further business expansion through acquisitions if an adequate business opportunity arises.

WE INTENTLY LISTEN TO THE NEEDS OF OUR CLIENTS AND THE LOCAL MARKET, WHILE ALSO FOLLOWING GLOBAL TRENDS, TO SYSTEMATICALLY INCREASE OUR BUSINESS EFFICIENCY

© Marera Property Management

By integrating one of the leading companies in physical and technical security such as Eurosecurity, we have rounded off the portfolio of Facility Management services that we provide relying solely on our own resources.

TWENTY YEARS OF SUPPORT FOR RGZ FROM THE KINGDOM OF SWEDEN MARKED

the Swedish Agency for International Development and Cooperation (SIDA) helped RGZ to overcome numerous challenges and achieve outstanding results in the reform of the land registry system

“The support provided by the Kingdom of Sweden’s institutions meant a lot to the Republic Geodetic Authority (RGZ) because, by doing so, Sweden sent a kind of public message that our institution has friends”, said the Director of RGZ, Borko Drašković, MSc, at the celebration marking twenty years of the Kingdom of Sweden’s support for RGZ. Mr Drašković pointed out that the excellent cooperation with Lantmäteriet, the Swedish Land Survey Agency, with the financial support of the Swedish Agency for International Development and Cooperation (SIDA) helped RGZ to overcome numerous challenges and achieve outstanding results in the reform of the land registry system.

The Director General of the Swedish International Development Cooperation Agency (SIDA), Carin Jämtin, expressed her satisfaction with the

fact that the cooperation between the Serbian and Swedish land registries has resulted in a better economic situation for people in Serbia, as well as a significant increase in land registry’s security and transparency.

The Head of the Group for International Cooperation of the Embassy of the Kingdom of Sweden, Karin McDonald, said she was pleased with the twenty-year cooperation with the Republic Geodetic Authority, adding that the cooperation facilitated the establishment of a mutual relationship from which both countries have something to learn, and is a good example of common European values.

The Assistant Director of the Development and Innovation Sector at RGZ, Darko Vučetić, thanked the institutions of the Kingdom of Sweden for their support in the reform of the Ser-

bian land registry. In addition to the presentation of the new project, the results of the twenty-year cooperation between the Republic Geodetic Authority and the Kingdom of Sweden, through projects financed by SIDA and implemented by RGZ and Lantmäteriet in mass real estate evaluation, digital archive and digital management of geospatial data, were also presented.

Mathias Rantanen, Project Manager from Lantmäteriet, thanked RGZ and SIDA for the exceptional cooperation and expressed his satisfaction that the new Smart SDI project is starting, valued at 2.25 million euros, which main goal is to improve the national geospatial data infrastructure. The project will focus on the preparation of a platform and the implementation of standards for digital data exchange between institutions, businesses and citizens in the Republic of Serbia.

REAL ESTATE IS THE SAFEST INVESTMENT

People decide on this type of money placement because it preserves their capital

In his interview for our magazine, Ervin Pašanović, General Manager of Adventis Real Estate Management, talked about the challenges this industry is facing and why people in Serbia invest in real estate despite high prices.

Real estate prices are still going crazy in Serbia. How do you explain this price increase?

Price growth is simply determined by supply and demand. The current situation in Serbia is such that we have a small supply of real estate, but a high demand. The latest wave of price increases is a direct result of the COVID epidemic, as well as the war in Ukraine, which all led to no new construction projects being developed. It takes 3-4 years to develop a project, and any instability, just like this one, caused by the global pandemic and economic-political upheaval, causes a decrease in supply, hence prices continue to rise. All of the above mentioned leads to the fact that buyers in the real estate market are ready to pay more at the moment, which leads to further growth in real estate prices.

What affects the high demand that leads to growth?

Primarily it’s purchasing power. Real estate is the safest place to invest for those with money in this market. Everyone who has excess money invests in real estate and buys apartments, bars or houses. If a person buys an

apartment that costs 200,000 euros today and rents it out for 1,000 euros per month with an average annual occupancy of 80 percent, it takes 2025 years to recoup the investment in the best-case scenario, and often even longer. Most often, people decide on this type of money placement because it preserves their capital. The supply and demand are such that there is a demand for more apartments here. Most of the apartments are sold even before they are finished.

Global trends show that real estate prices are falling after the previous decline in building material prices. Will this also be the case in Serbia? I don’t think so because we still have far greater demand than supply. The fact that building materials have become cheaper cannot significantly affect the price of real estate, because the material makes only about 10-20% of the square metre price, so it cannot significantly reduce the price of real

erty and live as close as possible to the city centre, as well as have all the services they need - from kindergartens, schools and clinics to playgrounds, sports parks, pet parks, etc. - at their fingertips. The block building system has proven to be the best answer to the needs of real estate clients because people prefer new neighbourhoods, rather than new buildings, in attractive locations. This implies large investment projects that can be carried out by a very small number of developers in Serbia, given that the cost of capital is high, and therefore the cost of carrying out construction works is high. All of this together affects current prices.

estate, considering the discrepancy between supply and demand. Although the logic is that when interest rates rise, real estate prices fall and purchasing power decreases, in our case, over 65% of real estate purchases are done without a help of a loan. The capital market, i.e. the stock market, doesn’t exist here, so everyone invests in real estate as the safest investment.

What is most in demand in the real estate market in Serbia today? How much have customer habits changed? Today’s buyer of real estate in Serbia is very demanding. They are looking for a complete service. They want to live in a good neighbourhood, in a well-built building. They want to have a nice prop-

What needs to happen for the trend of returning to the suburbs, nature and villages near big cities to prevail in Serbia? Life in such places is far more humane, but In Serbia, these trends are far from being widely accepted. I would disagree with your statement. I believe that there are no trends of living in the suburbs anywhere in Europe, as is the case in the United States of America (suburban area), and that even in the USA there is an increasing trend of people moving to the cities and not out of them. We can see all this by observing the trend of population growth in large cities. Almost 50% of the population of Greece lives in Athens. Moscow’s population has doubled in recent years, as well as Istanbul’s. Life in the city is more humane, for the simple reason that all required services are close and available – health care services, education, theatres, cinemas, and also, as a very important factor, there is a much greater opportunity for employment and better income. Although the Internet has resulted in many jobs not being tied to a geographical location anymore, the countryside still loses value, precisely because of the lack of services that meet basic human needs.

TODAY’S BUYER OF REAL ESTATE IN SERBIA IS VERY DEMANDING

Ervin Pašanović, Adventis Real Estate Management, General Manager

After 20 years in business, Eurodom still manages to stay on top. Aleksandar Aćimović, the owner and director of the Eurodom Company, talks about market challenges that the company faces and how difficult it is to adapt to a market with a growing number of competitors.

You are the founder of Eurodom, a family business that was established over 20 years ago. Could you tell us about your company’s core activities?

EURODOM sells complete bathroom equipment (ceramic tiles, bathroom ware, taps), as well as floor coverings (parquet, decking). Our portfolio includes products manufactured by renowned Italian companies.

What would you single out as your main asset, something that makes you stand out from the competition, and how have you managed to occupy such a prominent market position?

THE CUSTOMER ALWAYS COMES FIRST

The goal is to stay at the top

Aleksandar Aćimović CEO of Eurodom

EURODOM is constantly developing in all its aspects, including our staff. We try to follow the current trends and are constantly updating our showrooms. We send our staff for regular training sessions in the companies we cooper-

our customers. We know that delivery speed is very important and that’s why we try to accommodate our customers in the best and fastest possible way. Basically, at Eurodom, the customer always comes first.

YOU HAVE TO BE PRESENT ALL THE TIME IN THE FIELD, LISTEN TO THE MARKET’S WISHES AND NEEDS AND THEN RESPOND TO THEM ON TIME

ate with so that they can see for themselves not only the production methods and quality of the products they sell, but also the novelties that these manufacturers offer. It is very important to us that our sales staff know the products well because we believe that if they know products well, they will present them in the best way possible to our customers. Trusting the quality of the products we offer is our strongest sales tool.

Furthermore, we are increasing our inventory to ensure fast delivery to

It is very important for us to cooperate with architects, both well-known and professionally accomplished, and the young ones who are just paving their way in this business. Eurodom is always there to support them.

You have worked on some of the biggest projects in Belgrade. What projects would you cite as the toughest to implement and which are you the proudest of?

Eurodom has worked on many projects. All of them were challenging in

some way, and we are proud of them all. I’m not only talking about largescale projects, but also about smaller, private houses and apartments that are also important to us.

Skyline was one of the large-scale projects that were challenging for us. As it is a combination of residential and business space, it was very important for us to supply adequate products that would satisfy both purposes of the space.

What challenges do you most often encounter in your work and how do you overcome them?

Considering we’ve been operating in this market for years, we are aware that society and the requirements of everyday life are constantly changing and that we have to change with them. We are constantly adapting to new market demands. The competition in our line of business is very tough and we striving in every way possible to remain one of the top competitors in that “race”.

It is not always easy to adapt to other people’s wishes, but if you want to develop, you have to be ready for changes. That is perhaps the biggest challenge of today’s business. You have to be present all the time in the field, listen to the market’s wishes and needs and then respond to them on time.

What are your plans for the next period? In what direction will Eurodom develop?

Eurodom plans to open soon a new showroom in an elite neighbourhood in the city – the Belgrade Waterfront. We have all the qualities required to respond to the demands of that exclusive location, and our customers will be delighted with our new showroom as it will be something they have never seen in Serbia before.

Our plans are always the same – continuously working to remain at the top in our line of business.

EURODOM PLANS TO OPEN SOON A NEW SHOWROOM IN AN ELITE NEIGHBOURHOOD IN THE CITY –THE BELGRADE WATERFRONT

© Archive of Eurodom

BRANKOV BUSINESS CENTER

A new office building and a green oasis in the city centre

The construction of a new, modern business centre called BRANKOV Business Center, which will be a great addition to one of the most important locations in the very centre of Belgrade, the corner of Brankova and Carica Milica streets, has begun.

BRANKOV Business Center spans 10,500 square metres, of which about 8,000 will be for rent. The building has 15 floors, a modernly equipped entrance hall featuring natural, sustainable materials following global trends, as well as a green terrace for tenants on the 6th floor with a great view of the capital. The investment is estimated at around 20 million euros.

While adhering to the sustainable development concept, the new state-ofthe-art office building in the city centre will be built in line with the green construction principles and the EDGE

own needs and requirements. The new business centre will include everything that is an inseparable part of modern business, and it will also provide a comprehensive and top-quality retail offer.

BRANKOV Business Center represents an important investment for the SF1 Group, which is the exclusive distributor for the PANDORA and Nespresso brands, while the project management is entrusted to the MPC Properties Company, a regional leader in the development and management of modern shopping destinations and business centres.

“Our business philosophy is to choose to represent premium brands, look for the best locations for their placement and make smart business collaborations. We want the BRANKOV Business Center to provide its tenants

struction standards, so our tenants can enjoy a modern office space and secure support for their business. This project is just another validation that Belgrade is becoming an increasingly attractive business destination, and we are sure that BRANKOV Business Center will stand out with its location“, Nataša Bugarinović, Head of New Sustainable Development at MPC Properties, said.

MPC Properties’ portfolio includes the UŠĆE Shopping Centre, UŠĆE Tower One and Two business centres, Navigator Business Complex, BEO Shopping Centre, Delta City, Mercator Centre Belgrade, TLD Belgrade, as well as many other retail and office premises.

(Excellence in Design for Greater Efficiencies) global standards, with a focus on a healthy work environment, as well as on optimizing energy consumption, which minimizes costs for tenants. The building is designed with an emphasis on natural light and especially on the green roof garden with a beautiful panoramic view, which is perfect for relaxation as a part of the workspace.

Tenants can choose office space spanning from 250 to 650 square metres (NLA) per floor. The building has a high level of flexibility and is designed with a tailor-made approach, which allows tenants to arrange their part of the space in accordance with their

with exactly that quality and for them to recognize it as a place where they want to write their business story. We decided to form a strategic partnership with MPC Properties because they are a leader in the domestic real estate market and we know that they will contribute to making our investment sustainable in the long run“, said Dušica Pajić, Director of the BRANKOV Business Center.

“BRANKOV Business Center responds to the requirements of both the market and tenants for a facility that can meet all the challenges and needs of modern business. The construction is carried out in line with the highest environmental, technical and con-

WHILE ADHERING TO THE SUSTAINABLE DEVELOPMENT CONCEPT, THE NEW STATE-OF-THE-ART OFFICE BUILDING IN THE CITY CENTRE WILL BE BUILT IN LINE WITH THE GREEN CONSTRUCTION PRINCIPLES

OFFICE AND LOGISTICS SPACE STILL IN FOCUS

Despite the uncertainty due to the pandemic, the war in Ukraine, and the energy crisis, as well as the announced global recession - the commercial real estate market in Serbia continues to expand

Excluding residential real estate, the influx of foreign investments primarily drives further office and logistics real estate development, especially in industries recognized as the most profitable such as automotive, food, electronics, shared services, and ICT services. The market “attractiveness” of real estate is determined not only by good locations but also by its energy efficiency and independence from rising energy prices. Also, investments in real estate projects in seasonal tourist destinations are becoming more popular. These properties can provide a good return on investment with the help of a professional property management team.

OFFICE SPACE MARKET

The Serbian office market experienced a huge expansion and got more than 230,000 square meters of additional new office space in the last two years. The most sought-after properties are the hybrid model office space in the capital city of Belgrade - especially the CBD (Central Business District). The total supply of modern office space in Belgrade reached approximately 1,254,000 square meters, with a current prime yield of 7.5 to 8% by the end of the third quarter of 2022. There is a constant increase in interest by IT companies for office space in cities like Novi Sad, Niš, and Kragujevac as well. The low vacancy rate and the influx of foreign companies (especially from the market affected by the war) had a significant impact on the demand and, thus, the increase in the

rental price, regardless of the number of square meters. Operating costs have remained relatively stable, but we expect all costs to increase in 2023 due to the expected rise in energy prices and the increasing rate of inflation.

LOGISTICS SECTOR

For the last three years, the logistics sector has had the greatest potential for development in Serbia, and that has been influenced by the rise of online shopping and increased complications in goods transportation. Logistic projects are mainly being developed in the surrounding areas of large cities - locations with good transit accessibility and low business costs. In the last year, the total stock of logistics space increased by 16%, and the vacancy rate is at an extremely low level for newly built and existing facilities. Also, the rent level remained stable.

RETAIL MARKET

The retail market in Serbia has significantly slowed down during the pandemic, but existing retail projects are doing well, and many have been expanded with new phases of development. Numerous new retail projects are in the pipeline throughout Serbia too. In 2022 rental prices were increased in the range of 9% to 15%. Maintenance costs, especially energy costs, have increased from 5% upwards, but their growth is expected in 2023 - more than 12% due to the global energy crisis. Despite the negative impacts on the retail market, retailers still show positive

performance records, and many international retailers remain planning their expansion strategies.

2023 IS A SPECIAL YEAR

NOVASTON real estate platform marks a decade of successful operations in Serbia and the region (especially in Croatia), with over 40 strategic projects and managing a total of 500,000 square meters for more than 15 foreign and domestic clients (IKEA Serbia, CPI Property Group, NEPI Rockcastle, Schneider Electric...) In the next decade company’s goal is to expand the services it provides - from support in project development, property management services, valuation, mediation in the sale and letting of real estate, and marketing, but also to strategically position in projects as a business partner and investor. NOVASTON is a recognizable company in the retail sector, and in recent years it has been strategically focusing its operations on the office and logistics sectors, as well as its positioning in the hotel management industry.

FOR THE LAST THREE YEARS, THE LOGISTICS SECTOR HAS HAD THE GREATEST POTENTIAL FOR DEVELOPMENT IN SERBIA

Mia Zečević, CEO NOVASTON

18 December 2022

The reconstruction of the Technical Faculties will begin at the end of 2023

The competition for the conceptual solution for the reconstruction of part of the University Center in Belgrade, which was held in April last year, was the first step in the preparation of the project for the extension and expansion of its capacities. The winning conceptual solution in the competition was created by the project bureau “4MIND doo” from Belgrade, and the block in question, which is located on

King Alexander Boulevard, contains the Faculty of Electrical Engineering, Civil Engineering, Architecture, Mechanical Engineering, and Technology and Metallurgy, as well as the University Library “Svetozar Marković” and the building of State Archives of Serbia. The intra-block zone between the faculty buildings has been an unused and devastated space for years, so the reconstruction project

of the entire block involves planning, architectural and functional integration of the space, which will result in the connection of students of all faculties through a series of common contents. The reconstruction project of the University Center is in the process of drawing up technical documentation, and construction work could begin in the fall of 2023 at the earliest.

03 February 2023

The former turning point for steam locomotives near the Mostar loop in Belgrade will be reconstructed and turned into a multi-purpose center by the spring of 2025. The works have officially begun and are being carried out according to the project of a new architectural-urban solution, which was authored by Anđela Karabašević

Sudžum and Vladislav Sudžum, founders of the Belgrade studio AKVS architecture, which won the international competition in November 2021 with its team. It is expected that the works will last two years, where the reconstruction of the old railway turnout means the restoration of the Stove and Water Tower, as well as the construction of a

new office building in the northeastern part of the site. The investor of the project is the Government of the Republic of Serbia, through the Office for Information Technologies and e-Government as well as the National Platform Serbia Creates, and the total value of the investment is estimated at 52 million euros.

15 March 2023

The first and oldest youth and amateur theater in Belgrade, better known under the acronym DADOV, experienced another major transformation after extensive and thorough reconstruction that was recently completed. The drama studio was founded back in 1958, and it has been in its current location since 1969 when it was moved to a new building purpose-built for its needs. After more than half a century of intensive use, the time has already expired for the

17 March 2023

reconstruction of the entire building, and in December 2021, work on the reconstruction, which lasted over a year, finally began. The theater now has over 900 square meters of usable space, as an additional 400 square meters were added during the reconstruction in order to introduce or optimize all the necessary functions. Practically everything related to the work process has been completely reconstructed and technically improved, and some functions for the

realization of performances and benefits for actors are available for the first time. After the reconstruction, the theater has a large theater hall with 120 seats, which is production equipped for various other purposes, such as film screenings or smaller concerts and performances. The theater hall has slightly fewer seats than before the reconstruction, which is due to safety regulations and the need to provide access for spectators with wheelchairs.

Following a year-long competition process involving some of the world’s leading architecture firms, AL_A has been selected by the UNDP to design the new Belgrade Philharmonic Concert Hall. The Concert Hall is a landmark project for the City of Belgrade and Serbia. It has been the biggest cultural investment in the region for decades. Located next to the historic Palace of Serbia in New Belgrade, the project is an extraordinary commitment to building a brighter, more sustainable future for the city. With multiple performance, rehearsal, and creative spaces, including a symphonic concert hall with 1,600 seats, the Hall will be the first of its kind in the Balkans: an internationally recognized platform for world-

class musical performance and a magnetic civic gathering place. AL_A leads an international team including landscape designers VDLA, engineers AFA Consult, and local architects Zabriskie. They join Arup, who continues their role in acoustic and theatrical design. Ana Brnabić, Prime Minister of Serbia, says: ‘The Belgrade Philharmonic Concert Hall is the largest cultural infrastructure project in Serbia and the region, and will be one of the largest in Europe itself. I am proud that this decades-long dream of our professional musicians, young talents, music lovers, and the people of Serbia is finally coming true in such a beautiful shape. I believe that this Hall will be one of the greatest cultural lega-

cies of this Government. Investing in culture and in education is crucial for setting the pillars of a successful and strong modern country. This is something we have begun with numerous similar cultural projects. This Concert Hall will most definitely become a new landmark of Belgrade and attract visitors and tourists to our country. Furthermore, its quality programs will enrich our citizens’ cultural life. I strongly believe it will become another regional hub for making contacts and knowledge exchange, with the flow of creativity, ideas, and experience of domestic and foreign artists.

The reconstructed Dadov theater was opened

AL_A win the competition to design Belgrade Philharmonic Concert Hall

Source and photo on the right © AL_A Architecture Studio, London

Recently, there has been a growing trend of returning to the countryside in Serbia.

Traditional wooden shepherd cottage in the mountains, Western Serbia, Mokra Gora village

© Cryptographer / Shutterstock