Serbia Property Market Overview

Serbia’s recent chequered history does not need much description. The country’s political and economic state today is still one of gradual improvement but marred by a host of problems.

The lack of political stability has kept wide scale investment out of the country and governmental reforms are too meek to really transform the economy. Unemployment is still high and economic progress slow.

Years of war and underinvestment have led to an undersupply of housing stock. Prices are already at similar level to those of its neighbours who are already in the EU, such as Romania and Bulgaria.

The immature mortgage market and the high prices mean that room for significant price growth is limited, when compared to lower risk neighbours such as Sofia and Bucharest.

The high prices, developing economy heavily reliant on foreign capital, uncertain political outlook, poor infrastructure and lack of mortgage finance results in Serbia being just too high risk a location in which to invest for many investors. We will, nevertheless, be watching Serbia closely given the recent election of a pro-Western leader.