What kind of property can I acquire in Serbia?
/Serbia has one of the world's most fascinating blends of remarkable architecture enveloped in stunning natural scenery. The country's cities and towns attract tourists from all over the globe as they come to marvel at the picturesque views on offer, but the country is more than just a tourist hot spot. Among the historical and outstanding new architectural homes and buildings lies a housing market that is full of potential and offers competitive pricing for investors looking to obtain a wonderful property in one of the world's most visually stunning places. That housing market is bolstered by a residency by investment program based on real estate investment, making Serbia the destination for investors looking to enhance their global mobility portfolio through an astute real estate investment. The Serbian residency program, which requires no physical residence and has no minimum investment amount, can also lead to permanent residency, making it an excellent choice for global investors looking to set up a "Plan B" in one of Europe's best destinations. Another important aspect of the program is its investment flexibility, as it allows investors to purchase any immovable property on an open-market basis, meaning they can choose an asset that aligns with their investment objectives and budget. That flexibility does pose a question; however, if all properties are eligible for the program, which one should I choose? In this piece, we will provide you with a closer look at the Serbian property market so that you can decide which option best suits you.
Homes
Residential property is one of the most favorable real estate investments. It can be utilized for personal use or rented out for profit, and since the demand for residential real estate continues to grow, it has an impressive potential for appreciation gains. That potential for capital gains is in full effect within the Serbian housing market. In September of 2023, home prices grew an outstanding 8.2% year-on-year (YoY). Between 1995 and 2023, the Serbian housing market averaged an impressive average growth rate of 11.5%, highlighting the profitability of investing in Serbian residential real estate. But capital gains are not the only attraction, as rental yields are impressive as well. In Belgrade, the country's capital, the average rental ROI for an apartment is 6.54%, and it could reach as high as 7.71%. Profits are just one part of the equation; however, purchase prices are a critical factor as well, and Serbia performs magnificently in this arena. The average price per square meter (sqm) for new properties in Belgrade ranges anywhere between €1,500 and €3,500. An investor can get an excellent, livable, or rentable apartment in the capital's most desirable neighborhoods for an investment of around just €50,000. The prices of residential real estate outside of Belgrade are even lower, as top-tier apartments have a starting price of €30,000. But that doesn't mean that their profitability is less, as average rental yields in Novi Sad, for example, are set at 5.66%. Residential properties are profitable, easily sellable, and are in constant demand.
Resorts and short-term rentals
Another area where investors may take advantage of Serbia's property market is in the tourism and short-term rental sector. Serbia's tourism sector grew by a massive 20% in 2023, highlighting the growing demand for touristic stays and short-term rental properties. Overnight stays also increased by 13%, indicating that the short-term rental market is rapidly growing. Touristic stays may be seasonal in some countries, but Serbia's outstanding mountains offer an all-year-round experience for those who want to enjoy warm springs and summers embracing the greenery or for tourists who want to sit by a flickering fire during the snowy months of winter to take in the magnificent view. This poses an opportunity for investors, who can acquire a picturesque mountain cottage or stay starting at just €35,000. Since rental ROI for short-term stays is quite high (ranging anywhere between 8-15%), this opportunity offers investors a highly profitable asset that they can use themselves to experience Serbia in all its glory as they visit on their residency permits without the need for a visa.
Agricultural land
Nearly 41.% of all of Serbia's land mass is considered arable, agricultural land. Agricultural land prices grew 4% YoY in 2023, but they remain highly affordable. Land prices in Serbia can range from €300 to €36,000 per hectare (10,000 sqm). The average price per hectare is set at an affordable €7,500. Agriculture makes up nearly 6.5% of Serbia's GDP, highlighting the massive potential for growth in the area for investors who want to gain a residency permit through an affordable investment that can provide substantial yields.
Commercial real estate
Another type of immovable property investors can pursue in Serbia is commercial property. Commercial real estate, such as offices, shops, showrooms, etc., is a good option for investors who want to rent their property on long-term contracts and obtain a solid ROI. Average commercial rental yields in Belgrade ranged between 8-9% in 2023, slightly higher than their residential counterpart. Commercial properties are known for having higher average ROI than residential ones but can be harder to sell depending on their location and are subject to more fluctuating demand.
Where to start?
The best way to understand the Serbian property market and its residency by investment program is by contacting NTL Trust and booking a comprehensive consultation with one of our experts.
