Great interest of foreign companies for retail parks - Recovery of the real estate market only in 2012

(Retail park Pancevo)

If there is a retail park in Belgrade, consumers in Serbia will already get ten new world brands. Lease of office space in the retail park in Pancevo begins by signing the contract with several companies for the first time entering the Serbian market. These companies are also interested in the retail park in Jagodina, where the first stores should be opened in January 2011.

About the great interest of the companies to lease such retail shops and about its advantages over the lease in the shopping centers, professionals from the real estate agency "Danos" have talked today (8th of July 2010) at a press conference on the occasion of the company's presentation.

- Monthly price of the office space lease in a retail park ranges from 8 EUR per square meter for large tenants to 12-13 EUR for smaller offices. Maintenance of this facility is 1.5 to 2 EUR per square meter while in the malls maintenance price is 10 EUR per square meter. The interest of the companies to lease space in retail parks is great. We have reached the second stage of signing of the contracts in the first retail park in Pancevo, which is on about 7000-8000 squares - said Ivan Simic, Manager of the Transactions Department in "Danos".

Consultants from "Danos", the member of "BNP Paribas" Group, one of the largest financial organizations in Europe, presented today the state of real estates in our market.

The same leasing price for office space

( Jovan Vujić, Jovan Jovanović, Ivan Simić i Bojan Jevremović)
According to Jovan Jovanovic, director of the company "Danos", the recovery of the real estate market is expected when the gross domestic product (GDP) increases and when the purchasing power of the population increases, that is according to estimates of experts of this company, by 2012.

- Retail property sector property has been expanding due to construction of shopping centers, "Delta City" and "Usce". Our estimate is that there will be no construction of shopping centers by 2012 , although Belgrade as the capital should have more shopping moles. For example, Zagreb has 10 shopping malls. Announced the construction of such facilities, but it will not be realized until the increase of life standrad - said Jovan Vujic, Manager of the Department for Assessment and Investment Consulting in "Danos".

He believes that because of the appearance of shopping moles and the beginning of the crisis the price of the rental in the busiest streets in the capital have been lowered, primarily in the main commercial zone of Knez Mihailova Street, where now there are empty shops. In his words, the price of the rental has decreased from 100-150 EUR per m2 to 30-90 EUR depending on the attractiveness of the location and the size of the premises.

- Big boom in the construction of office space has begun since 2005. year. Due to the construction of new facilities in recent years, at the market appeared around 150,000 m2 of additional office space. B23 was constructed, Three tobacco leaves, Blue Center, Savograd. All this has caused the price of the rental of office space of A class of to decrease from 18-20 EUR to 15 EUR per m2 - Vujic said.

According to his estimate, the cost of leasing office space will no longer be reduced because it is not profitable for investors. He notes that the price growth can be expected with filling of the existing office space, and that now Belgrade has 20% of empty class A office space.

- We do not expect investment in the construction of business premises, unless investors decide to build facilities for their needs, as in this year began Raiffeisen Bank - says Vujic.

For Class B tenants of business premises should set aside 10-12 EUR per square meter.

Vujic said that the cost of the land has dropped down in the vicinity of Belgrade from about 100 EUR per square meter, how was in 2006, to about 50 EUR, far how much you can buy a square meter.

Biggest demand for smaller apartments

(Gallery apartments)

When it comes to housing prices, the estimation of Bojan Jevremovic, a consultant for residential property in the company "Danos", is that housing prices will decrease.

- Square meter on the outskirts of Belgrade, will cost between 1100 and 1,200 m2, while the "top" sites such as Dedinje, Senjak, Vracar and the center of Belgrade prices climb up to 4000 euros. As far as New Belgrade, prices range from € 1,600 per m2, and in better locations 2900-3600 EUR - Jevremović said.

He said that the settlement "Belville", in which there are 380 unsold flats, and in the "Gallery Apartments" the prices didn't come down. Jevremović notes that now there are mostly smaller sized buildings constructed, and that the most successful sale is of smaller apartments - studio flats and one bedroom flats, which "disappear as soon as they appear on the market."

Since April of this year, the company "Danos" has opened a Department of residential real estate. According to assessment of the experts of this company, despite the crisis the sector is not declining and there is always interested customers for luxury real estate.