The conference ”Let’s talk about real estate”, organized by the leading real estate consultancy company in Serbia CBS International, part of the Cushman & Wakefield Group, gathered yesterday in Belgrade's Crowne Plaza Hotel the most prominent domestic and international investors to summarize the market results of 2018.
The last twelve months have brought positive changes in the real estate market, and the general conclusion is that Serbia is becoming an increasingly interesting location for investments in all segments.
The number of construction sites across the capital best reflect the realization of the announced projects, and this trend is expected to continue in the next couple of years.
Office Market Booming in Serbia
The office market in Serbia has recorded an exceptional demand in this year, which for the first time exceeds an office occupancy level of 100,000 sqm. The rate of available office space in Belgrade fell to a level that can be compared to a far more developed European investment destination.
By the end of 2020 Belgrade will, with the finalization of the office development schemes currently under construction, reach an office supply of 1 million sqm.
Although the main business zone in the capital is still New Belgrade, with the construction of class A office buildings in the city center, such as the modern office building Business Garden, it is expected that the focus will be shifted to the old part of Belgrade.
Belgrade's Retail Market to Double by 2020
Belgrade's retail market will double its offer with the construction of three shopping malls in the next two years. With their construction the total supply of modern retail space will reach about 500,000 sqm, which will enable the expansion of present and new comer brands in the market.
Residential Market Still Attracting High Demand
Residential market continues to face a three times lager demand compared to the supply, and CBS International has in the past three years realized over 100 million EUR net value of sold apartments.
What is indicative about the best-selling residential projects of the key international and local developers, is that they invest considerable time into the planning phase and project development. This allows them to form a perfect project in line with the needs of the specific target niche for the given locations, thus making sure that they match the real demands and as such are easily marketable.
Industrial Market a Highly Promising Field of Investment
The industrial market is expected to expand in the next couple of years as a highly promising field of investment. Many well-known international companies are interested in investing in Serbia, either by expanding their production capacities or by developing new ones.
Yields in Serbia Still High in the Region
The yield levels achieved by purchasing investment properties in Serbia are higher than yields in countries across the region, especially compared to the main markets of this part of Europe, such as Poland and the Czech Republic.
The high yield levels together with the overall political stability and economic growth of the country constitute the main reasons why investors are interested in the Serbian market.
Given that our market is lagging behind the cities in the region, opportunities for investment exist in all segments, and the conclusion of the experts from CBS International is that a positive trend in the real estate market is expected to continue in the upcoming period.
About CBS International
The leading real estate consultancy CBS International is part of Cushman & Wakefield Group, one of the largest global real estate consultancy companies, operating with over 45,000 employees in more than 70 countries worldwide.
CBS International has entered in the second decade of its business operations as the absolute market leader in Serbia with impeccable results covering a broad range of integrated services including: office agency, retail agency, residential sales and lease agency, industrial & land agency, valuation & development advisory, capital markets, market research, project management, property and facility management, marketing.
To view CBS's full scope of services visit their official website.
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