FO C U S O N
REAL ESTATE & CONSTRUCTION IN SERBIA 2020
R E A L E S TAT E & C O N S T R U C T I O N I N S E R B I A
MUSINGS OF A SCARED REALTOR During the state of emergency, in the solitude of family self-isolation, I read various projections regarding the upcoming trends in real estate prices in the domestic and global markets
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E RV I N PA ŠA N OV I Ć
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Adventis Real Estate Management d.o.o.
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here have been various hocus-pocus forecasts that the prices would go down by 20%, that the demand for office space will be halved because everyone now realizes that they can work from home, that the construction sector will be the first to suffer, that banks will suspend project financing and reduce their exposure to mortgages, that I should change jobs and become a tailor and sew masks because real estate management will no longer exist, or that the best thing for me would be to become an artisan of a sort. And so, anxious and fearful, I am waiting for the emergency measures to be abolished. Truth be told, my phone is constantly ringing and before I answer I start thinking about how everyone will now start selling or renting their properties but there will be no takers.
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Indeed, some banks did immediately raise loan down payment to 30% instead of the current 20%, but the National Bank of Serbia, together with the Association of Serbian Banks and the Ministry of Finance, reacted as soon as possible and reduced the down payment rate to 10%. Domestic and foreign banks immediately started adhering to this, thus sending a message to developers and end-users that there is no room for investment panic and that the state stands firmly behind the construction sector as the foundation of the economy. Construction cranes remained fully operational and the sales volume promptly returned to the previous level during the entire period of the state of emergency. Of course, there is no talk about reducing prices. Why is that so?
Well, a good part of the economy has been at a standstill for at least two months. Maybe we are lucky in a sense that we are not a huge tourist country and that tourism’s share in the national GDP is still relatively low. I must proudly point out that I will continue working in the real estate industry as a solidly grounded realtor, appraiser, broker, manager and contractor. People who worked from home were the first to call me to find them an adequate business space with windows that open and individual air conditioners as soon as possible so that they could get out of the comfort of their homes. Clients who can buy real estate have started procedures to do so ASAP. But how big is the real need for real estate? Although we see only pessimistic analyses that say that demand for and prices of real estate must go down, I think that, with the right investment policy, the growth can be the same or even higher. I would call this process the Ath-
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ens-ization of Belgrade - 50% of the Greek population live in their capital and it seems to me that we are following a similar scenario, only because of what big cities have to offer. Although it is not popular to promote relocation to larger cities, this is an inevitable process that should not be ignored for the purpose of a serious economic analysis. If the development plans for our capital city are taken into account, including the construction of new bridges, tunnels, a subway, railway and bus stations, and airports, Belgrade must offer sufficient accommodation for its new citizens to be able to live and work there and that translates into growth. Also, if there is a surplus of funds, many of my clients believe that funds should be hedged in real estate too due to currency and other systemic risks. In the end, we all know that the best way to sustain economic growth in times of crisis, from the Great Wall of China to the New Deal, is having a public works system that we are already deep into thanks to direct foreign investments. Chinese, Turkish, Israeli, Austrian, Kazakh, Russian, ex-YU, UAE and other developers are building our country and that is the direction we must continue in. From Corridors 10 and 11, the network of new roads and the development of railways that have been neglected for over 40 years, all the way to the new residential towers in Novi Beograd like Sky Line and West 65 to the Belgrade Waterfront complex, Belgrade is growing and developing in all directions, and I'm glad I can be a witness and participant in that process. Residential complexes such as Novi Dorćol, K District, Savada, Novi Minel, Zepterra, Sakura, East Side, the Knez Miloš Residence and others have long been contributing to the city with their green passports and amenities that new
Belgrade is growing and developing in all directions, and I'm glad I can be a witness and participant in that process
buyers are rightly looking for, such as playgrounds, schools, nurseries, clinics and shops. The developers’ work has also changed a lot in recent years and has not abated during the coronavirus epidemic. The block approach to the development of Novi Beograd proved to be the most humane. The legacy of socialism and the subsequent exhibition at the New York Museum of Modern Art (MOMA), shushed local haters and showed that we should go back to the time when we created trends and copied less. The commercial/business complexes, from Delta Holding’s administrative building to the Sirius Business Centre, new garages, shopping malls, logistics centres, production halls and retail parks, all of them make the construction industry the fastest growing branch of the economy. COVID-19 has also taught us that cottages near residential areas with sports facilities in terms of swimming pools, gardens and sports fields are a great refuge in case of mandatory self-isolation after a sudden trip, quarantine or reducing
the risk of contact with other potential carriers. Consequently, the prices of such properties went up. As for the rest of Serbia, Novi Sad and Niš follow the development statistics of Belgrade, while the development strategies in smaller towns is more or less successful. In conclusion, I would like to share my optimism in terms of the future stable trends in the real estate market where all process participants - from developers, investors, designers, contractors, financiers, banks, funds, appraisers, realtors, lawyers and notaries to the Government and the President, the ministries of finance, commerce, tourism and telecommunications, construction and infrastructure, the National Bank and the Association of Banks, all the way to the end-users, i.e. His Majesty the buyer or the tenant, see, feel and know that the construction industry, as the foundation of our society’s economy, is the only way to sustain economic growth and the overall progress. To avoid the big bad wolf scaring us again, we are going to build with quality.
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CONSTRUCTION SECTOR AS THE MAIN DRIVING FORCE BEHIND GDP GROWTH In the second quarter of this year, the construction sector recorded an increase in the number of employees, which is 10 per cent higher relative to the same period last year
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A L E K SA N D RA DA M N JA N OV I Ć State Secretary at the Ministry of Construction, Transport and Infrastructure, Government of the Republic of Serbia
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he construction sector and infrastructure projects in Serbia have not been stopped. The Ministry of Construction, Transport and Infrastructure reacted in time, and all the recommendations that were valuable to the construction companies were posted on the Ministry’s website so the construction work can continue. Aleksandra Damnjanović, the State Secretary in the Ministry of Construction, gave an interview for Diplomacy&Commerce’s special edition called ‘Real Estate Sector in Serbia’ in which she says: "The results achieved in this segment are of
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great importance so that, as a state, we can more easily overcome the economic crisis that affects the whole world. In the first quarter of 2020, the value of executed construction work increased by 24.4 per cent compared to the same quarter of 2020. The construction sector was the main driving force behind GDP growth, which in the same quarter, stood at 5 per cent relative to the same period in 2019,” says Ms Damnjanović.
How did the coronavirus pandemic affect the construction sector and infrastructure in Serbia? — From the onset of the COVID-19
epidemic in Serbia and even before the introduction of the state of emergency, the Ministry had implemented measures aimed primarily at preventing the spread of the infection on construction sites and called on all construction companies and building material manufacturers to report their problems to us in this new situation. A large number of construction companies responded to our appeal, and the Ministry, based on the received suggestions and notifications while implementing all decisions devised by the Government and its Crisis Unit, issued and published recommendations on its website, which, according to construction companies, were quite valuable at the time. In addition to safety measures, we actively participated in drafting government decrees, especially in the part of organizing transportation for employees during the state of emergency. The Ministry’s activities did not stop even after the state of emergency was lifted. The Deputy Prime Minister and Minister of Construction, Zorana Mihajlović organized special meetings with representatives of the con-
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struction industry, all with the goal of protecting the health of all employees and maintaining the work process on construction sites. We are pleased to say that the number of infected workers on construction sites is very low. The largest infrastructural construction sites in Serbia never closed down and they are still fully operational, while the workers are adhering to all prescribed measures. At the moment, more than 6,000 people are working on the largest transport and communal infrastructure projects, as well as the construction of apartments for members of the security forces.
What is the situation with active construction sites at the moment in Serbia like, and how important is that for the future of Serbian construction? — Companies from Serbia, the EU, China, Azerbaijan, the USA, Russia and Turkey are engaged on our construction sites. At the beginning of the epidemic, especially during the state of emergency, there were certain problems with the delivery of equipment, but the works were not suspended for a moment. We believe that the overall delay in the implementation of projects, considering their complexity and value, will not be significant. In late July, there were a total of 61,303 active construction sites in Serbia, which is 16,090 construction sites more than in the same period last year. This data best show that the construction industry in Serbia is coping well with the crisis, as evidenced by the quality of the business environment in our country, especially in the construction segment and the issuance of construction permits, which number is growing year-on-year.
In late July, there were a total of 61,303 active construction sites in Serbia, which is 16,090 construction sites more than in the same period last year
metres of motorways have been built in Serbia and over 550 kilometres of railway tracks have been overhauled. Corridor 10 was completed in 2019, so now we have an interminable motorway stretching from Belgrade to the border with North Macedonia and Bulgaria. The Belgrade-Čačak motorway segment, a part of the Miloš Veliki motorway, is also opened to traffic. Currently, works are underway on the construction of more than 250 kilometres of new motorways and expressways, and despite the difficult working conditions due to the coronavirus, we will not have long delays in implementation of these infrastructure projects. I would like to use this opportunity to mention the most important projects such as the Belgrade bypass, the Preljina-Požega motorway segment, the Sremska-Rača-Kuzmin motorway segment, the Moravian Corridor, etc. Serbia is the location of the currently the biggest railway construction site in this part of Europe. We are building the Belgrade-Budapest
fast rail that will have the biggest viaduct in this part of the world. Both passages of the Čortanovci tunnel, on Fruška Gora, have also been breached. Next year, when the Belgrade-Novi Sad railway track is finished, the commuting time between these two cities will be only 30 minutes. The goal is to modernize the entire railway section on Corridor 10 after the completion of the road segment of Corridor 10. Next year, the plan is to start works on modernization, i.e. construction of a high-speed railway on the sections from Belgrade to Niš.
When it comes to residential and commercial space, does the construction of large condominiums contribute to the increase of the construction’s share in Serbia’s GDP? — Condominium was introduced as a term in the latest amendments to the Law on Planning and Construction because, in practice, there was an increasing number of examples of this type of residential construction and layout. According to the overall number of issued
What are the results so far when it comes to the construction of roads and railways in Serbia and what projects are planned? — In the past few years, 350 kilo-
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building permits, we can conclude that the number of issued building permits for the construction of residential buildings is growing, and the trend of construction of residential and residential/business complexes is especially noticeable and that a significant number of condominiums is being built especially in bigger cities. The role of the legislator is to monitor and listen to the needs of citizens and businesses and react adequately by regulating everything that can cause a problem in the implementation of relevant laws. In addition to the construction of large infrastructure facilities, the construction of residential and residential/ business complexes will certainly significantly participate in increasing the construction’s share in the country's GDP.
What is the current situation with illegal buildings, five years after the enactment of the Law on Legalization of All Illegally Constructed Facilities? — I have to say that the Ministry is not satisfied with the number of legalized facilities and that the reasons for the relatively low number of issued legalization decisions lie in the fact that municipal and town administrations did not do their job properly although there were given extra manpower to do so. On the other hand, there is a noticeable lack of interest among a number of citizens to solve their problem with illegal constructions. It often happens that even after several requests from the line authorities to submit the necessary proof and documentation, they do not do that. The legalization conditions prescribed by law are such that everyone can legalize their house or apartment for a very low fee. The latest amendments to the Law on Legalization of Buildings ban the sale of these buildings, which was one of the measures to expedite the legalization process. It did yield certain results in practice.
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However, in addition to working on legalization, municipalities and cities should also strictly adhere to the Law on Planning and Construction, act preventively, but also repressively and do not allow new illegal buildings to be built on their territory. I would like to remind you that illegal construction has been considered a criminal offence since 2002 and that the
conditions for obtaining the necessary permits today are such that there is no reason for anyone to build without one. It is very important that all state and other bodies act together - from the legislator to the judiciary - because only in this way can we succeed in preventing new illegal construction, which undermines the foundations of the entire legal system.
E-PERMITS The e-permit system has been in the making for a long time. What are its effects now that a couple of years have passed? — Following the implementation of the system for electronic issuance of building permits, Serbia now stands shoulder-to-shoulder with the most developed countries in this segment. Serbia ranked 9th on the latest Doing Business list compiled by the World Bank, which is a fantastic success, because, before the implementation of this system, Serbia ranked 186th out of 189 countries. The existing system is being improved every day, and the creation of the so-called e-space system is also planned which will incorporate elements of e-government in the procedures relating to planning documents.
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R E A L E S TAT E & C O N S T R U C T I O N I N S E R B I A
REAL ESTATE MARKET IN SERBIA - BEFORE AND AFTER THE STATE OF EMERGENCY In late 2019, it was disclosed that real estate prices would rise next year as well, but the consequences of the coronavirus outbreak affected the real estate market in Serbia very quickly
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fter March 16, when the state of emergency was introduced, the real estate market almost came to a standstill, and this was especially true for the purchase and sale of property. However, we can say that the real estate has completely reverted to
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the pre-pandemic period, while most of the parameters show that the coronavirus has not greatly affected real estate prices for now. The largest real estate sales have been, as expected, recorded in Belgrade, where the real estate market was worth 2.2 billion euro in 2019. If we look at the entire
By JA S M I NA GAV R I L OV I Ć D RA Ž I Ć
municipality, the average price of apartments in old buildings, advertised on the site www.4zida. rs, in July was 1,637 euro /m2. In the first quarter of this year, the average price of apartments in old buildings was 1,457 euro/m2, and in the second quarter 1,609 euro/m2. We can observe that, re-
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gardless of the state of emergency, the second quarter brought an increase in prices. The same goes for the average prices of houses. Looking at the whole municipality, the average price of houses in the first quarter was 859 euro/ m2, and in the second quarter 1.000 euro/m2.
Street, and the cheapest around Bajloni's outdoor market and in Kopitareva Gradina.
IN WHICH BELGRADE MUNICIPALITIES BUYERS PREFER HOUSES OVER APARTMENTS?
SAVSKI VENAC SURPASSES STARI GRAD
The most expensive apartments in Belgrade are the ones in the Belgrade Waterfront complex. Last year, one of the apartments in the complex was sold for 1.32 million euro which broke the record in terms of the most expensive property in Belgrade – 8,683 euro/m2. If regard to Belgrade’s municipalities, according to the data compiled www.4zida.rs, the municipality of Savski Venac surpassed the municipality of Stari Grad in terms of the price per square metre of properties for sale, so the average price of a square metre of apartments in new buildings in this municipality stood at 2,641 euro, and in old buildings 2,565 euro. The construction of apartments in the Belgrade Waterfront complex has greatly influenced the growth of prices in old buildings in the surrounding neighbourhoods, so the average price of a square metre of apartments in old buildings in Savamala is now 2,723 euro/m2. The growth of real estate prices in this municipality is best illustrated by prices from 2018, where a square metre of apartments in old buildings in the third quarter averaged 1,766 euro, and in the last quarter of 2018, it jumped to 2,628 euro. Stari Grad is the second most expensive Belgrade municipality in terms of real estate prices, after Savski Venac, where the average price of apartments in old buildings advertised on the site www.4zida.rs is 2,466 euro/m2 and those in new buildings 2,775 euro/m2. In this municipality, the most expensive apartments are located in Obilićev Venac and Knez Mihailova
The most expensive apartments in Belgrade are the ones in the Belgrade Waterfront complex
During the state of emergency, it seems that the interest in buying houses was bigger than ever before, especially those located on the outskirts of larger cities - Belgrade and Novi Sad. More extensive research on this topic should be conducted in order to draw firm conclusions. However, even before the state of emergency, houses were more expensive than apartments in some Belgrade municipalities. Although the apartments in Savski Venac are the most expensive in Belgrade, also in Serbia, houses in this municipality are even more expensive. Thus, the average
price of the advertised houses on sale in Savski Venac is about 150 euro/m2 higher than the average price of the advertised apartments and amounts to 2,803 euro/m2. The most expensive houses are in Dedinje and Senjak, where some houses are sold for 4,000 euro/m2. In the municipality of Stari Grad, houses are sold for 200 euro/m2 less than apartments in old buildings and their average price stands at 2,247 euro. In Vračar, houses are also sold at high prices for an average of 1,955 euro/m2, while in other Belgrade municipalities, they are sold at prices below 1,000 euro/m2. If you don’t really need a house in the central Belgrade municipalities, you get the best value for your money if you buy a house in the suburbs like Barajevo, Lazarevac and Sopot. Here, the prices of houses average around 360 euro/m2, and most of them have a yard.
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R E A L E S TAT E & C O N S T R U C T I O N I N S E R B I A
REAL ESTATE PRICES IN BELGRADE HAVE NOT DROPPED
Although, at the beginning of the state of emergency, the presumption was that this extraordinary circumstance would affect the price of real estate in Belgrade, based on data from the first and second quarters, we see that this did not happen in most city municipalities. Most city municipalities recorded an increase in the price per square metre of property in the second quarter compared to the first quarter. Only in the municipality of Savski Venac there was a decrease in the price of apartments in old buildings. On the other hand, in the same municipality, house prices increased drastically in the second quarter compared to the first quarter of this year (Q1 – 2,273 euro/m2, Q2 – 2,812 euro/m2).
PRICES OF APARTMENTS IN NOVI SAD UNCHANGED
After Belgrade, Novi Sad is the second city in Serbia in terms of sales in the real estate market. In 2019, the real estate market here was worth 470 million euro (generated from the cumulative value of purchase agreements). If we exclude the state of emergency, during which minor changes took place mostly in regard to renting, the real estate prices in Novi Sad
During the state of emergency, it seems that the interest in buying houses was bigger than ever before have been growing year-on-year. The average price of apartments in old buildings advertised for sale is 1.353 euro/m2, while the apartments that are located around the Novi Sad Fair are sold at the highest prices, exceeding 2,000 euro/m2. The second most expensive apartments are those located in the vicin-
ity of SPENS and in the town centre. A large number of newly built apartments have also driven up the real estate prices in Novi Sad. Real estate agents say that, regardless of a large number of apartments on offer, the demand in Novi Sad is still higher than the supply, and this is especially true for newly built apartments. The average price of apartments in new buildings is 1.414 euro/m2. The state of emergency did not significantly affect the prices of apartments for sale. If we compare the first and second quarter of this year, we can see that the prices of apartments in old buildings have remained almost the same –1,381 euro/m2 in Q1 and 1,388 euro/ m2 in Q2.
HOUSES IN NOVI SAD CHEAPER
The average price of houses in Novi Sad is 719 euro/m2. Like the apartments, the houses located in
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R E A L E S TAT E & C O N S T R U C T I O N I N S E R B I A
A large number of newly built apartments have also driven up the real estate prices in Novi Sad
Belgrade and Novi Sad in terms of real estate sales, is the real indicator of the impact of the state of emergency. In Kragujevac and Subotica, apartments in old buildings recorded a higher price in the second quarter compared to the first quarter of this year. Apartments in NiĹĄ have become slightly cheaper, but houses have become more expensive, on average by about 20 euro/m2.
CONCLUSION
The real estate market has shown great flexibility and has quickly returned to the state before the state of emergency period. However, in the previous months, we have seen how sensitive the real estate market can be and how much it depends not only on the purchasing power of citizens, but also on economic stability in the country. ** The presented analysis was carried out on 75,000 ads for properties in old buildings, which is how many were advertised on www.4zida.rs , as well as on 160 new construction projects.
the vicinity of the Novi Sad Fair have the highest price of 1,736 euro/m2, followed by the houses in Adamovićevo Naselje and Grbavica. These two neighbourhoods are still very popular with real estate developers, and that is one of the reasons why houses in these locations are so expensive. The average price of houses is less than 500 euro/m2 in the suburban municipalities of Novi Sad. It is interesting to note that, if we look at the entire municipality of Novi Sad, houses in the second quarter became cheaper compared to the first quarter of this year (Q1 - 835 euro/m2, Q2 - 668 euro/ m2). Such prices of houses have not been recorded since late 2017.
STATE OF EMERGENCY FAILS TO HAVE A MAJOR IMPACT ON OTHER CITIES AS WELL
The real estate market in other cities, which are lagging behind
REAL ESTATE PRICE CHANGES DURING AND AFTER THE STATE OF EMERGENCY If we observe the second quarter of this year, out of 69,000 ads for the sale of apartments in old buildings, advertised on www.4zida.rs in that period, the prices in almost 12,000 ads changed, which is 17% of the total number of ads on the site. Of that, 5% of the ads featured an increased price while 12% featured a lower price of the real estate on sale. Properties in Belgrade and Novi Sad were sold at the most reduced prices. In Belgrade, the rental of real estate experienced a bigger drop in price than the sale. Of the total number of ads in Novi Sad that featured a changed in price, the biggest change occurred in rental apartments, where the price decline was 8%. However, the change in prices was recorded in a small number of ads, so that number did not lead to a drop in the average price at the city level.
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THE PERFECT COFFEE DRINKING EXPERIENCE The German manufacturer of premium home appliances, the Miele Company, has made sure that their coffee machines meet the strictest requirements of refined taste and satisfy every family member
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spresso with pronounced aromas, strong Ristretto, Caffè Latte or an ideal combination of Espresso and milk in the form of a divine-looking Cappuccino are just a few ways to start a new day. To prepare your favourite beverage in a barista fashion, you need a perfect synthesis of ingredients and a top-quality coffee machine.
FREESTANDING COFFEE MACHINES CM5 SILENCE
Carefully designed devices are necessary to achieve the fullness of aroma. Therefore, with its Miele AromaticSystem, Miele paid special attention to the design of the coffee-making component. The secret of this system is in the coffee-making chamber, which expands whenever water enters it. This means that the coffee will be thoroughly mixed with water, that is, it will become more intense in taste. The whole process of coffee making is very quiet, bearing in mind that the CM5 Silence models have a quieter motor that reduces the noise volume by 50 per cent compared to the earlier basic models of Miele coffee machines.
Miele coffee machines are winning over people worldwide thanks to their simplicity and intuitive use of the device. The CM5 Silence coffee machine has a combination of displays with several sensors, so you can effortlessly, with the press of a button, make a coffee that you often drink. Furthermore, the device is programmed so that you can save your settings such as the amount of water and coffee used and the temperature at which you make your coffee, thus ensuring the continuity of the taste that you like. OneTouch for Two is a particularly convenient feature of all Miele coffee machines. With this option, you can make two drinks at the same time, with one click. This saves time and it will take you only a couple of minutes until you are ready to enjoy coffee and conversation with family and guests. The ComfortClean system makes it easy to maintain hygiene. This means that parts of the appliance, including water, drip and waste containers, can be removed and washed by hand or in a dishwasher. Cleaning of the milk dispenser is now much easier as it is automatic, which means that this part of
the device cleans itself after each drink that is made with milk.
INNOVATIVE FUNCTIONS OF MIELLE COFFEE MACHINES
The wide range of Mielle devices also includes those that you can connect to the Miele@ mobile application
Depending on the model, Miele coffee machines come with different capacities, possibilities and functions. Thus, for example, the patented Miele CofeeSelect system guarantees maximum enjoyment and freedom of choice. Namely, users have at their disposal three containers for different coffee beans, and you can choose the coffee beans you want to use for your coffee. The wide range of Mielle devices also includes those that you can connect to the Miele@mobile application. Mobile phone management creates a number of possibilities. You will be able to easily monitor the levels of coffee beans in the containers, order cleaning agents or prepare your beverage via the MobileStart option. Easy removal of impurities, and especially problematic scale, is significantly simplified with the AutoDescale function. The long and arduous process of removing scale is now automatic.
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RECYCLED PLASTIC BALLS IN THE SERVICE OF CONSTRUCTION The Delta House office building will be one of the largest projects in the Western Balkans and built using the system of hollow slabs produced in line with the Unidom technology
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espite the pandemic, Delta Real Estate has managed to continue operations on all four active construction sites. The construction of the Delta House office building in Belgrade, the Delta Planet shopping mall in NiĹĄ, the Indigo Hotel in Belgrade and the refurbishment of the Delta Planet shopping mall in Varna (Bulgaria), which is getting ready for the arrival of a big Ikea store, continues. The fact that empty plastic balls
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make up a large part of the concrete constructions of modern buildings may sound inconceivable to laypeople, but to experts, it spells out only one thing – cost-cutting. This saving refers to, first and foremost, the amount of concrete used in the construction. Hollowing out concrete slabs to make them lighter, but also to reduce the amount of concrete used in construction, is nothing new, and there are a number of ways in which this can be done. The novelty in our
market is balls made entirely of recycled plastic, the use of which leads to reduced use of concrete as much as 35%. This seemingly unusual technology involves placing balls between the upper and lower zones of the armature, i.e. in the slab zone that does not the structure, after which the concrete is poured in while being exposed to vibration in order for the concrete mixture to be evenly distributed and form the future ribs. Once the concrete
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hardens, this kind of construction has properties like any other. Plastic balls replace heavy concrete in all those places where concrete is not necessary for static reasons. In addition to the fact that the amount of concrete used, and thus the weight of the structure, is smaller, this system also enables the use of significantly thinner slabs in the construction of buildings. The use of this technology also has two environmental benefits. Namely, the balls are made of 100% recycled plastic, and as less concrete is used in construction, less CO2 is emitted into the atmosphere. These balls have found their place in the construction of Delta House, the new office building of Delta Holding. We saved 1,600 cubic metres of
These balls reduce the quantity of required concrete, so less CO2 is emitted into the atmosphere
concrete and reduced the weight of the structure by 4,000 tonnes. The use of hollow slabs also reduced the number of pillars and provided larger spans of up to 10.8 metres, without additional beams. By using 100,000 balls in the construction of a new office building,
we will reduce CO2 emissions by 336 tonnes. The Delta House office building will be one of the largest projects in the Western Balkans and built using the system of hollow slabs produced in line with the Unidom technology.
THE COMPANY’S FUTURE HEADQUARTERS Before the pandemic, Delta Holding had begun constructing yet another facility, which will change the appearance of Novi Beograd. Delta Holding is constructing its new office building, Delta House, the company’s future headquarters. The investment is worth 40 million euro. The building will span almost 23,000 square metres and will be located in Block 19, between the Crowne Plaza Hotel and the Genex Apartments. Delta House is designed and built according to the latest standards, as a LEED-certified building. This
premium office building was designed by the world-renowned architectural firm, MYS. With its unique design, energy-efficient solutions, facilities that employees in large companies expect to see in an office building today, this building will be something completely new and will certainly change what Novi Beograd has to offer, as well as the appearance of this part of the city. Citizens and guests of Belgrade will be able to see that for themselves in the first quarter of 2021.
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CALL THE ADRIATIC RIVIERA YOUR HOME
Portonovi is a visionary destination by Azmont Investments
CO R P O R AT E
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ith over 240 days of sunshine and temperatures reaching upwards of 30 degrees in summer, Montenegro serves as the perfect location for waterfront destination, Portonovi. A place you can now call your home, with villas for sale, restaurants, wellness facilities, beach club, boutique shops and Europe’s first One&Only. Portonovi is an idyllic village on the Adriatic Riviera, designed to bring together like-minded people to explore cultural and natural wonders. This is complemented by a thoughtfully curated collection of services and experiences in a peaceful environment. Positioned
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at the entrance of UNESCO World Heritage site Boka Bay, Portonovi is framed by mountains rising from sun sparkled the Adriatic Sea. Spread across 26 hectares, with 1.8 kilometres of beachfront, Portonovi boasts wide waterfront promenades and beautifully landscaped green spaces as well as residences to live in. The best way to make the most of Portonovi is to call the destination home. There are 214 residences to buy across The Village Residences, Marina Residences, Sky Villas and The One&Only Private Homes. Showcasing an innovative authenticity, the Village Residences remain faithful to Boka Bay’s herit-
P O RTO N OV I , M O N T E N EG RO
We believe in the future of Montenegro, a very small, dynamic and beautiful country
age while offering a contemporary feel for modern buyers. The mix of high-end design and high-quality materials, combined with an outstanding outdoor space and breath-taking views, offers an air of sophisticated indulgence. The Sky Villas are ultimately what sets Portonovi apart from every other real estate offering in the Mediterranean. These magnificent three and four-bedroom penthouses are spread across two top floors on the waterfront and feature private infinity pools ranging from 26m2 to 32m2, spacious terraces, private elevator access and breath-taking views. Each property is unique, serving as
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a piece of architectural art to offer the highest level of elegance and comfort. These residences come complete with high-end kitchens and peaceful bathrooms. Savvy and experienced real estate investors will be aware of the ease and advantages of investing in a new home in Montenegro. Whilst swathes of the Mediterranean have been traditional hotspots for holiday villas the value proposition of owning a home on the Adriatic Riviera should be strongly considered. Along with numerous restaurants, cafés and boutiques, residents and guests of Portonovi will also benefit from access to the first European One&Only’s health and wellness spa, Chenot Espace. The exquisiteness of The One&Only is matched by another revered brand in the destination of Portonovi. D-Marin is a leading global network with 14 marinas in the Mediterranean and the Gulf. It offers a premium service and experience to maritime and yachting enthusiasts from all over the world. D-Marin Portonovi Marina is the only entry port into Montenegro and has capacity for 238 berths for yachts up to 120m long. The Marina offers a choice of entry points and a sheltered position at the entrance to Boka Bay, serving as an inviting stop-off point for superyachts and those wishing to explore the Mediterranean and the Dalmatian Islands. Art Gallery Pizana showcases the work of Montenegrin and international artists and hosts exhi-
Wherever you are from, the Portonovi team will speak your language
bitions throughout the year. Around the coast at Portonovi, you can expect freshly caught fish along with organic vegetables and herbs from asparagus and leeks to fennel and chicory, served with a selection of locally produced wines. “Our desire with Portonovi was to create a community and a village that embodies the culture, heritage and sophistication of Montenegro, one that resonates with visitors and locals alike. We believe that this has truly been achieved and has resulted in a vibrant haven that anyone would be proud to call home,” says Ahmet Erentok, Chairman of Azmont Investments “Wherever you are from, the Portonovi team will speak your
language. We have a diverse team speaking 15 different languages and are on hand to assist no matter your enquiry. We have created a 5-star team fronted by the Lifestyle Reception and Concierge Service. 24 hours a day they can help curate tailor-made lifestyle journeys – from historical, cultural, wine and dine tours, leisure and wellness experiences throughout Montenegro”, added Mr. Erentok. Portonovi is an exceptional investment opportunity for anyone looking to own a slice of the Adriatic Riviera. With everything from Village Residents to Sky Villas, there is a residential offering to suit all buyer needs and requirements.
UNIQUE PROPOSITION “We believe in the future of Montenegro, a very small, dynamic and beautiful country. Portonovi is a unique proposition which blends the best of our culture, lifestyle and heritage. It is a haven for you to discover something new every day.”
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ENJOYMENT OF BUYING AN APARTMENT Expert’s View on why your Home should be an Investment
COM M E N T
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hether you are buying a new home for your family, or just looking for a solid and safe investment, purchasing a property can and should be an enjoyment. However, it does represent one of the biggest decisions, whereas the variety of choices and complexity of the actual sales and purchase process calls for an expert guide. If you are buying an apartment for yourself and family, the primary choice to be made is whether you should choose a newly built building, or take into consideration a secondary market as well. The first decision to be made reflects a shortlist of locations you consider preferable. In case you prefer new and recently built properties, some of the areas that are most popular among the buyers are broader area of the city center, New Belgrade, and traditionally well-valued residential areas such as Vračar, Voždovac, Zvezdara, as well as elite neighborhoods of Senjak and Dedinje. Most dominant choice of the buyers are newly built large-scale complexes offering more than just an apartment, a lifestyle concept, either as an open complex or a close-gated community with its
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CLICK TO SEE THIS ON WEB
M I NA KA L E Z I Ć Sales & Marketing Director, CBS International
The research undertaken by CBS International showed that, at the moment there are no significant changes in the sales prices for newly-built units
private park, sports courts, kids’ playgrounds, pets corner, central reception, maintenance and numerous family-friendly amenities on the ground floor, or more luxuriously with a swimming pool, spa, gym. Such properties are sold during the construction, and usually presume phased construction with a possibility to influence a final layout of your apartment with interior modifications or to choose some of the finishing works. Large-scale complexes apart from offering a whole new lifestyle for the whole family preserve the value of your property in years to come. Namely each phase of the construction brings slightly higher prices thereto the buyers who smartly choose one of the first phases of a project can expect to gain on the property value once the whole complex is fully finished. Furthermore, the rental market recognizes much better projects with a concept, therefore the apartments bought for rental purposes achieve
premium market rents and represent the first choice of international professionals or diplomats living and working in Belgrade. Secondary market properties may, on the other hand, pride itself on a great micro-location in the areas where the availability of land lots for new developments is rather scarce and limited. Nonetheless, the challenging factor may be an absence of a parking space, a lift, or too old and neglected entrance, façade of the building which greatly diminishes the overall value of the property and is not something you can change. Also lack of any amenities or property management services, a need for renovation which though seemingly minor may in practice exceed the initial expectations of a buyer. On the other hand, newly built large-scale projects of renowned international and domestic investors usually have a project financing bank, which gives additional safety to a buyer, and allows for
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housing loan options even in the earliest phases of the construction. Furthermore, the investors of large-scale projects are dedicating more and more time to initial development advisory process which is a key to a project marketability, thoroughly analyzing the needs and expectations of specific target groups for the given micro-location in terms of the preferred apartment structures, optimal sizes of an apartment versus number of bedrooms which is much dependent on the micro-location, functionality of the apartment interior in terms of the sizes of the individual rooms, room width, envisaged number of bathrooms, size of the terrace, as well as the expected level of finishing works, choice of the equipment, optimal cooling and heating systems in regard to the location and expected preferences of the target buyers. Both international and domestic investors are trying with each new project to offer something new, some new unique selling point that will differentiate their project in the eyes
of the buyers. In the light of the still unstable situation caused by a pandemic, real estate remains to be one of the safest investments in our market. However, although for the past couple of years Belgrade residential market has been booming, we expect certain impact in the near-term due the altered circumstances with a pandemic, having in mind that some buyers may choose to delay purchase decisions. A leading real estate consultancy CBS International, part of the Cushman & Wakefield Group, has recently conducted a comprehensive research of Belgrade residential market, which included the analysis of around 300 residential projects in various construction phases in all central Belgrade municipalities. In addition, the secondary market was also analyzed. The research undertaken by CBS International showed that, at the moment there are no significant changes in the sales prices for newly-built units. Namely, large-scale investors are keeping the same
In the light of the still unstable situation caused by a pandemic, real estate remains to be one of the safest investments in our market
sales prices which were established prior to the commencement of this situation, offering a regular discount. A slight price decline is visible in case of smaller, financially more vulnerable local investors, usually without project financing, who develop the projects of up to 50 units and are forced to speed up the sales process by offering lower prices. When it comes to the secondary market, the downward trend in the prices is visible in less than 5% of offered apartments. Buyer sentiment is expected to be more cautious, especially for housing-loan dependent buyers, until the situation improves. In addition, a traditionally strong demand for apartment purchase in Belgrade has also been coming from the Serbs living abroad, whereas this group is now experiencing difficulties in traveling, postponing their arrival for when it becomes easier. On the other hand, there were no measures limiting construction works in Serbia and most construction sites remained active, with preventative measures being taken. Due to the permitting processes slowdown and other obstacles, some scheduled completions could witness a slight delay. What is very positive is that new phases of the large-scale projects that have already been established in the market are starting construction, while the plans of the investors regarding new developments continue to unfold, some of them planning to start till year close. Based on a day-to-day communication with the buyers, CBS hand-on experience shows that the demand is picking up since mid-May, and since there are no impediments in terms of the administrative side of the sales & purchase process, i.e. all supporting institutions are working normally like notaries, banks, cadaster, buyers are seeing the present moment in the market as favourable and safe to invest, especially in case of the projects where the actual move in date is rather close.
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PROMOTING GREEN BUILDING FOR ALMOST 10 YEARS Creating a market through demand would also support sustainable construction, so SerbiaGBC continues its activities further, informing future users, investors, producers, all those who need to understand the benefits it brings them
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A N A LY T I CS
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he construction sector is one of the most influential on climate change, unfortunately not in a positive context, therefore being crucial in undergoing transformation. The impact of the built environment is noted through massive amounts of resources consumed (50%), it is responsible for over 35% of the total waste generated in the EU. 39% of the total GHG emissions originate from this sector. By optimizing the materials alone, these emissions could be cut down by 80%, not to mention the savings that would be achieved by switching to renewable sources during the use of buildings. The new Action Plan for Circular Economy is one of the main elements of the European Green Deal, Europe's new agenda for sustainable development. In order to optimize the use of resources and reduce impact on climate, the EU Commission will launch a new comprehensive Strategy for a Sustainable Built Environment by
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D RAGA NA KO R I C A Executive Director of SrbGBC
The new Action Plan for Circular Economy is one of the main elements of the European Green Deal
promoting standards for entire life cycle assessment and circularity, in order to keep the resources in use within the EU economy for as long as possible. SerbiaGBC, as a member of World GBC, contributed to the Open Letter addressed to the EU Commission, which refers to the introduction of Level(s) and standards relating to the entire life cycle of buildings (section 3.6). The EU is striving for climate neutrality. Cities in Europe emit 72% of all greenhouse gases. If it is estimated that 85% of the entire population will live in cities by 2050, it is evident why net-zero emission targets have been introduced in their agendas. They are racing as to who will become climate neutral sooner (Copenhagen 2025, Helsinki 2035, Stockholm 2040.). Due to these reasons, cities are setting conditions to large buildings to be green-sustainable - in order to minimize their impact. Certification has become a tool that confirms this commitment. Glob-
ally, it is already deeply paving the way to the NEW NORMAL. In the Netherlands, in 2018, 75% of the built commercial sector was certified green. Examples of excellent practice in sustainability are THE EDGE in Amsterdam, BLOOMBERG in London and OLYMPIC HOUSE in Lausanne. It is precisely the Deloitte building (THE EDGE), that stands as a confirmation of the global trend of shifting towards green building. Although it was the most expensive facility in terms of initial investment, after three years it became the cheapest to maintain. This experience initiated them immediately to start the construction of the next, as they say, even greener facility. For investors, in addition to other benefits that go along with it, economic profitability is still the guiding principle. Real Estate in Serbia has also swept this trend. The benefits of green certified buildings were especially recognized by investors who later remain in the owner-
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ship of these buildings, especially those of a commercial nature (they are rented faster, achieve a better price and are cheaper to maintain). SerbiaGBC has been promoting green building for almost 10 years with the aim of transforming the building and real estate markets in Serbia. We believe that through our activities, getting to know the profession, competent institutions, businesses, but also the general public, we have contributed to raising awareness. Two years ago, there were 13 LEED certified buildings in Serbia, now there are 19, while another 27 are in the process of certification. Among the last certified according to BREEAM is Uťće Tower 2. We are proud of the members who, by their example, establish the transformation towards sustainability at the local level.
Each of our members has a reason behind their vision of green-sustainable building – whether they are socially oriented and responsible companies, academic institutions, experts in the field, but also young people who are preparing for the new normal with the Council. Construction is one of the main pillars of economic growth in Serbia with the largest share in GDP in the previous two years. The growth trend is in the first quarter of 2020 (19.6%), initiates the building sector as one that can play the key role in the transformation of Serbia towards sustainable development. Green building enables continuity of economic growth, but also provides the necessary environmental and social benefits. The financial sector is recogniz-
The EU is striving for climate neutrality. Cities in Europe emit 72% of all greenhouse gases
ing this and is already accelerating globally and with a huge percentage of green investments in construction. That is why it is important for us to expand this dialogue with all parties within Real Estate. Regulatory changes are needed to encourage this kind of building, as many countries already support. Creating a market through demand would also support sustainable construction, so SerbiaGBC continues its activities further, informing future users, investors, producers, all those who need to understand the benefits it brings them. This year SerbiaGBC is once again promoting WGBWeek, the topic of which is #CimateAction. Join us in the last week of September on the way to a net zero emission future https://serbiagbc.rs
The Edge Amsterdam
Bloomberg office in London
Olympic House in Lausanne
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WORKSPACE DESIGN AS A TOOL FOR ORGANIZATIONAL CULTURE CHANGE Post COVID office space values: the role of wellbeing, digitalization and collaboration
W O R KS PAC E D ES I G N
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hanges in work processes and digitalization have speed up changes in the workspace design. Traditionally designed workspaces - a combination of closed offices and open spaces, do not match to most productive organizations, in which, communication, result-orientation, as well as employee wellbeing are a priority. The large-scale increase of remote work produced by COVID 19, according to research, has a great approval of employees (no travel to work, flexibility, work-home life balance, even increased productivity - according to 45% of 1200 respondents by Spacelab). However, social interactions and the creative part of the job still requires face to face interactions. What is the future of the offices?
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V E S NA KRIZMANIĆ dipl.ing.arh
TIME FOR WORKPLACE FLEXIBILITY
Now, every organization need to find balance of remote work office work, to analyze and make the architecture of a new business network. Every space and every organization can do a real needs analysis, can create a workplace strategy (tailor made, unique) and to implement workplace design recommendations as a tool for change. Traditional office spaces have the opportunity to become new places of identity for their employees through reorganization, design and planning. More collaborative spaces, agile working or digitalization are just some of options. Offices will not disappear, they can be transformed and become hubs - the bases of the company's social and digital network. Sociologist Manuel Castells pre-
Workplace strategies ARCHINOVA www.archinova.rs
Offices will not disappear, they can be transformed and become hubs - the bases of the company's social and digital network
sents a new theoretical perspective for understanding the trends that characterize the structure and dynamics of our societies in the 21st century, deals with the interpretation of the transformation of labor and employment, flexibility of the workforce, introduces the terms "replaceable workforce" and "self-programmed workforce", putting information and communication technologies as the main causes of the transformation of the labor market. Do we, regardless of the Covid consequences, know what the workflows will look like in 2030? Do we know which occupations will not exist and which new ones will be formed? Generation Z (born after 1995) whose digital literacy is implied, may be part of the labor market as early as 2030 and different generations and competencies need to be integrated into working spatial frameworks and networks (according to McKinsey Global Institute research by 2025. 40 to 75 million business worldwide will be shut down).
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THE POWER OF DESIGN
The design of the workspace does not only mean the choice of ergonomic furniture within a modern interior design, or architecturally harmonized aesthetics that fulfill basic functions. Above all, it should be a management tool for achieving the company's goals, a meaningful and functional space, on the focus on employees and their wellbeing, better work efficiency and raising the company's representation - sending a message and giving meaning. Space can become even more, a catalyst for cultural changes in the organization. If change is sought, new goals are set, in parallel with change management - it is spatial transformation that can be a tool and a catalyst for an organization. Raising wellbeing and aesthetic values goes without saying, and an experienced architect is an ambassador of change and the link between management and spatial change processes.
The specificity of cultural heritage, types and habits of employees must not be neglected
architectural team. Communication, collaboration, and commitment are often identified as the three keys to successful organizational change.
DEVELOPMENT OF SOCIAL AND DIGITAL NETWORKS
Process changes require a change of approach first and foremost. The approach should be open to rapid changes in the digital way of doing business and changes in the labor market and flexible, with a
focus on labor mobility, developing a feel of belonging and employee satisfaction, making places of innovation and research. The specificity of cultural heritage, types and habits of employees must not be neglected. In Serbia, the local advantages, qualifications of the workforce, the employee’s knowledge and need for belonging should be recognized, and a modern spatial office framework can be made for a new architecture of digital and social networks of future.
STRATEGICLY GUIDED CHANGE PROCESSES
Company management and human resources sectors become “designers� of change, and the workspace is catalyst, a tool that accelerates and enables change. Companies that have a change management strategy (whether or not related to the changes caused by Covid 19) certainly understand that it is necessary to achieve several preconditions for implementation (it is necessary to create an appropriate climate to implement change, sometimes training employees need new work skills, etc.). One precondition is certainly the involvement of employees in changes and design of new spatial environments, and a key condition is the strategic cooperation of senior management, HR partners and architectural team, to define the processes of an organization and communications, possibilities and goals. A combination of bottom up and top down management - give input to the
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