After a continuous rise in the recent period, rental fees in Serbia have begun to fall. Not only in Belgrade, but also in the country's smaller cities, there is a palpable drop in monthly rental fees. Due to the rising demand, pricess skyrocketed in 2022, with the price hikes affecting not just those looking for a flat, but also former residents. There were many cases when families were forced to give up their rentals in the capital, as that were unable to afford the monthly expenses.

Inflation and increased demand

Astronomical prices characterised the real estate market in Serbia last year. In the Balkan country, not only the prices of apartments have skyrocketed, but subletting has also become more expensive. Now, however, it increasingly seems that a turn has occurred in this sector. Throughout Serbia, the cost of renting flats has started to decrease in recent months. It is easier to get a cheaper apartment, so even people with lower incomes can enter into the market.

This makes it easier for families, as price hikes last year were driven by increased demand. And in more than one case, property owners suddenly upped the rent from one month to the next.

A subtenant of an apartment in Belgrade complained to V4NA that, despite having used the apartment in the capital for years and settling in with his family, he could no longer keep apace of the development of rents. He had to move to a slightly cheaper, and more affordable property.

Russians like being in Serbia

In addition to the inflation affecting the whole of Europe, the increase in the number of Russians arriving in Serbia also led to an increase in rents. V4NA visited several of them earlier, and they said that they feel welcome in the Balkan country.

 

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Olga, who previously studied mathematics and pedagogy in Moscow, now lives in Belgrade, and is very satisfied with the circumstances and living conditions in Serbia. Most of all, however, she emphasised the openness of the people:

„The people are super friendly, helpful, open for communication. I’ve been to many countries around the world, but only in Serbia I found so many people speaking English really well. It help[s] a lot when you are [an] emigrant and don’t know [the] Serbian language. I can work here and I am close to Central Europe.”

Belgrade the most expensive, Novi Sad and Nis follow

According to Serbian portals dealing with the sale and letting of apartments and houses, there is now more and more hope that the market will calm down. On the website nekretnine.rs, it can be seen that in March the price of subletting has visibly decreased compared to the data of the past months. Incidentally, in a national comparison, of course, the apartment prices are the highest in Belgrade, and the cheapest places to get a temporary home are in Kragujevac and Pancova.

Despite the fact that the monthly cost of renting in the capital is the highest, prices have started to fall there, as well. In the Vracar district, leases are 1.3 per cent less than before, while in Novi Beograd it’s a little more than two per cent less.

In the centre of Belgrade, the rental price for flats currently hovers around 16 and a half euros per square metre, while in the cheapest part, Mirijevo, you have to reckon with 8.8 euros.

After the capital, in terms of prices, there are two other larger cities, one in the north and the other in the south. Novi Sad and Nis follow Belgrade, but sublets are much cheaper in these places.

However, the rental price of properties in the provincial capital of Vojvodina has already dropped significantly. In the centre and two other frequented places, the price per square metre is around 10 euros. Although this is still a monthly cost of 500 euros for a 50 square metre apartment, it is still less than before. According to Blic, the reduction can be 10 per cent, but in some cases even 16 per cent. It is even cheaper to live in Nis. Rents in this city are around 6 euros per square metre.

Price of subletting down, but price of buying up

The purchase price of apartments, however, continues to rise in the Balkan state. According to the data put out on Nekretnine.rs website, which was compiled based on the advertisements they published, it appears that prices in Serbia also went up in March. According to their experts, there is no need to expect significant price jumps or drastic reductions in the market this year.

Photo: V4NA

The first serious changes can begin in autumn, says Milica Dokovic. The appraiser put it this way: The movements perceptible on the world market do not affect Serbia for the time being, at least they will not have rapid consequences.