The Serbian real estate market has shown resilience and stability in recent years. In Q3 2024, apartment prices increased by 4.69% year-on-year (0.50% when adjusted for inflation). This moderate increase indicates a stable market without major fluctuations. Belgrade remains the leader in the real estate market, with €555.6 million spent on property purchases in 2024.
The most sought-after cities for real estate investment in Serbia include:
Belgrade
Novi Sad
Niš
Kragujevac
These cities have experienced noticeable growth in sales contracts, with Novi Sad (+22.5%), Kragujevac (+22.9%), and Niš (+15.6%) showing significant increases in 2024.
While specific rental yield data for Serbia is not provided in the search results, the country's high homeownership rate of around 90% (expected to remain stable in 2025) suggests a potentially limited but competitive rental market.
Property tax: Ranges from 0.4% to 2% of property value, depending on the property's worth
Rental income tax: 20% flat rate
Capital gains tax: 15% on property sales
Corporate tax: 15% standard rate
VAT: 20% general rate, 10% for residential buildings
Serbia's tax system for real estate is relatively straightforward, with moderate rates compared to many European countries. Property taxes are progressive, increasing with property value. The rental market is subject to a flat tax rate, making it easy for investors to calculate potential returns.
Rate: 2.5% of the purchase price
Applies to: All property purchases, except new builds from developers
Payment deadline: Within 15 days of purchase
New builds: Subject to VAT instead (10% for residential, 20% for commercial)
When buying property in Serbia, the transfer tax is a key consideration. At 2.5%, it's lower than in many neighboring countries. For new constructions, VAT applies instead, which can be higher but is often included in the developer's price. Buyers should factor in this tax when budgeting for property acquisition in Serbia.
Energy-efficient homes: Demand is expected to rise by 30% by 2025 due to growing environmental awareness.
Modern, well-designed properties: Particularly sought after in urban hotspots like Belgrade3.
Rapid sales: Properties in Belgrade are expected to stay on the market for just 45 days by 20253.
Serbia's GDP is predicted to grow by 4% in 2025, creating a favorable environment for real estate investment. The country's liberalized laws allow foreign ownership of property, making it attractive to international investors.
The demand for housing loans has increased, with the cumulative volume of new housing loans reaching RSD 102.8 billion (USD 933.7 million) in the first eleven months of 2024, a 28% increase compared to the same period last year.
EXPO 2027 is expected to boost the real estate market, requiring new infrastructure, hotels, and residential buildings.
The residential real estate market in Serbia is projected to grow by 1.40% (2025-2029), reaching a market volume of US$0.37tn in 2029.
While the market shows promise, investors should be aware of potential economic fluctuations and geopolitical factors that could impact the real estate sector.
In conclusion, Serbia's real estate market offers stability and growth potential, supported by economic development and favorable policies for both domestic and foreign investors. The combination of high homeownership rates, increasing property values, and government initiatives creates an attractive environment for real estate investment in Serbia.
