Emerging Real Estate Market in Serbia
It is safe to say that Serbia has positioned itself as one of the most significant investment destinations in SEE region, especially attractive for real estate investments. Given its strategic position in the Balkans, favorable export-import regimen with SEE countries and Russia, low profit tax rate of 15%, average salary and government-supported incentives for the investors, it is no wonder that Serbia is becoming the leader in the Western Balkans’ real estate market.
There are number of projects currently in development, in some of which initial construction phases have already commenced. Amongst several already established local developers, a large number of foreign developers is more and more present in Serbian real estate market, via forming Serbian subsidiary companies in order to obtain a construction permit on its behalf, or by partnering up with local real-estate developers, using their experience in the local market and in dealing with relevant authorities.
One of the developers currently present in Serbia’s real estate market is Chinese Shandong Hi Speed Group which subsidiary – Empiret Belgrade is constructing the Chinese Cultural Center in Belgrade planned to have eight floors above and two below ground, and a total area of 32,000 m2. Also worth mentioning is real estate developer Alpros Invest, which already begun preparatory works on the construction of business -residential complex called “Panorama” at municipality Voždovac in Belgrade, which is to have a gross area of 24.108 m2. The completion of “Panorama” is scheduled for September 2019, and the total value of the investment is 13 million EUR.
GTC Serbia, a well-established Serbian real estate developer, is to construct ADA Mall, which is going to be built across Belgrade’s Ada Ciganlija, and shall cover 34,000 sqm. The opening of ADA Mall is planned for the end of 2018. GTC also plans to construct “Green Hart”, a business complex with the idea to return the nature to people and which will feature a green oasis. This project will cover 46,000 m2 and will be located in Milutina Milankovića Boulevard in Belgrade.
Local real estate developer which had a major success in building Novi Beograd’s luxurious A block in a record amount of time is DEKA Inženjering. This construction company was founded only several years ago, in 2011, but their rapid completion of initial phases of A block secured an enviable reputation amongst local real estate developers. After the last phase of A block finishes, this business-residential complex will feature 137.000 m2.
WEST 65 is also a significant real estate project currently in construction, located next to Serbia’s first business park – Airport City Belgrade. The investor of this project is PSP-Farman Holding, an international construction company, constructing this mixed-use project via its Serbian subsidiaries, PSP-Farman Beograd and Farley investors Beograd.
A well-established developer in Serbian market is AFI Europe, a part of AFI Group conglomerate, which constructed the mentioned Airport City. Three phases of this project are finished and the construction of the next phase is planned in near future. AFI is also set to construct Skyline Belgrade, a multi-use commercial and residential complex which will feature three towers and spread on 68.000 m2. This project is hailed as the future new landmark of Belgrade, not only because of its size, but also because of the fact that it will be located in one of Belgrade’s most prominent streets, Kneza Miloša Street. The project value is estimated at 200 million EUR.
Mentioned projects are only a part of the real estate projects to be constructed in Serbia, or which construction already commenced.
Real-estate development is giving a boost to other markets in Serbia – attracting new investments, providing new jobs, stimulating consumption, and having an overall good influence on Serbia’s economy. It remains to be seen whether this ‘real estate boom’ is to continue and will it yield a significant economic growth in the following years.
Author: Ružica Božović, practitioner at the law office SOG / Samardzić, Oreški & Grbović and Dunja Tasić, senior associate at the law office SOG / Samardzić, Oreški & Grbović