Market impact of building legalization – Will real estate prices and rents in Serbia drop?

Many citizens are wondering how the proposed law that will resolve the issue of legalization will affect real estate prices. Professor at the Faculty of Economics Ljubodrag Savic told Euronews Serbia that they could be expected to fall.

– Provided that legalization goes as planned, real estate prices can be expected to fall. It is believed that the majority of people will legalize their apartments, and although not all of them will immediately enter the market, a significant part will – said the interviewee.

He explained that, as a result, the supply will be greater.

– The entire housing market will probably move forward because a much larger number of people will meet the requirements for obtaining a housing loan because they will have a quality mortgage. So far, banks have not accepted unregistered apartments as collateral. After legalization, citizens who had unregistered apartments will be able to mortgage them – said Savic.

According to him, this will accelerate housing construction. He noted that the price drop would not happen quickly, because citizens would need time to decide whether to sell their property.

Ekonomski fakultet Beograd

Faculty of Economics

Ljubodrag Savić

Bill on Legalization

real estate prices

legalization