Massive housing construction not to lower prices of apartments

(Srđan Vujičić)

The CEO of real estate consulting company King Sturge in Serbia, Srđan Vujičić, estimated that the massive housing construction project, announced by the Serbian Government, would not lead to decrease in the prices of apartments.

Vujičić told Beta agency that the prices of residential space in Serbia were 20% lower than in 2008. One square meter in Belgrade's suburbs costs about 1,100 EUR, while its price on Dedinje, in Vračar and Stari Grad amounts to up to 3,000 EUR.

- The supply of apartments for sale is very small, but the previous period was marked by buyers' restraint because of the fear of what might happen in the market - said he.

Vujičić added that, according to their estimate, Belgrade lacks about 20,000 apartments.

- The estimate is done on the basis of who needs apartments, as well as who is able to buy them - said he and added that the apartments for sale existed only in Belville complex and buildings Maxima and Metropoliten.

When it comes to rental of apartments, Vujičić said that the demand for luxury apartments was smaller and the reason was the fact that many foreigners and non-government organizations had left Serbia, so that there were not enough highly-solvent tenants.

He says that the prices of luxury apartments in Belgrade have already been decreased, and that they are expected to drop by additional 10% or so.

Vujičić added the prices of studios and one-room flats had remained the same and that the price depended on the location and quality, ranging between 8 and 13 EUR per square meter.

He says that the rents for apartments are high and that they will, most probably, stay that way because people are ready to pay them.