(AG real estate) Belgrade, city of the future

Belgrade, capital of Serbia and Montenegro, is the biggest administrative, political, cultural, commercial and educational centre as well as a communication junction (Europe's corridor X and VII) in the state. There are some 2 million people living in the metropolitan area of the city (16% of Serbia's population) and there are 33% of Serbia's employed working there, with young population characterized with high educational level, good knowledge of foreign languages and an impressive computer literacy.

On of the main levers for the channelling of further development of Belgrade is his Belgrade Land Development Public Agency, better known in Europe and elsewhere as Beoland. This is a public company founded by Belgrade municipality for the purpose of preparing properties for land development and construction.

What are the possibilities for investing in Belgrade?

Belgrade today is a modern city where there is a tremendous building activity for the last 5 years in the reconstruction of overall infrastructure, renovation and refurbishment of downtown area and the building of new business and housing space, hotels, industrial structures and shopping malls situated at motorways heading towards the entrance of Belgrade.

Dynamic city environment, diversified offer of cultural events and tourist destinations, good restaurants, clubs and cafés, hospitality and joviality of its citizens have contributed to Belgrade's election as the "City of the Future" for the central part of southeast Europe for 2006 – 2007 in accordance to the choice of Financial Times. We are to expect that the city will be highly ranked among competitors for the title of the "City of the future of Southern Europe" during MIPIM held on 16 March 2006.

This is the right moment to invest in building in Serbia, especially in Belgrade, since the city is still disposing of quality locations for the construction of most various purposes. The new Planning and Construction Law as well as the Master Plan until 2021 have been introduced in 2003 have contributed to a more efficient and more flexible system of planning and construction. Hence in this area the legislation has been brought closer to the existing standards of Europe.

Land development

In accordance to the Planning and Construction law, the land development can be:

• Public land development (traffic roads, infrastructure, public facilities and buildings, parks, cemeteries, etc.) – always owned by the Republic of Serbia
• Other land for development is at disposal and can have different forms of possessorship (right to use, lease and ownership)

How to find locations in Belgrade?

There are different ways for investors to find potential locations:

• Free real estate market (the prices depend on the agreement between the seller and the buyer) where we have real estate agencies and law offices acting as mediators;
• Locations are available through the process of privatization and liquidation of legal entities;
• The Belgrade Land Development Public Agency - Beoland, is organizing the procedure of land lease for a period of 99 years through public tendering or through collection of bids for locations where legal aspects are settled in favor of municipality or the city of Belgrade where is planned the building of more than 800 sqm of Gross Floor space;
• District municipalities are organizing procedures of leasing the land through public tendering for locations where legal aspects are settled in favor of municipality or the city of Belgrade where is planned the building of less than 800 sqm of Gross Floor space;

Belgrade Land Development Public Agency

The Agency has been established by the City Municipality for the purpose of land development along with construction. It employs 300 persons in 10 specialized sectors and is administering following affairs:

· Preparation of programme regulation and leasing of land;

· Preparation and follow-up of conceived town planning layouts, studies and design of important infrastructure and traffic systems (bridge over Ada Ciganlija, inner road ring, light rail transit system, etc.);

· Settling of legal and ownership aspects;

· Preparation of location for lease and public announcement for land lease through public tendering or through bid collection;

· Preparation of contracts with investors for the new construction in relation to the payment of land regulation fees and for lease;

The Marketing and Information Department of the Agency is preparing locations for lease in accordance to urban regulation plans and design. At this moment there is a preparation of an important number of locations for the construction of buildings for business and commercial use of various dimensions in Novi Beograd (New Belgrade). During 2201 -2006 period some 2,000,000 sqm of Gross Floor space have been leased for different purposes (approximately 27% housing and some 54% business and commercial). Around 25 bigger locations have been allocated to foreign investors.

BLOCK LXVII – Sports village

At the present the biggest project in Belgrade has been advertised on the 22 February 2006 in order to collect bids for the lease of land in Block 67 in Novi Beograd for the construction of a Sports village for the Universiade 2009 participants (in the first stage of use) while in the final stage the compound with buildings will be used as a new residential complex. Some 2,000 apartments are planned to be built with appurtenant facilities, total area approx. 206,100 sqm.

Author :

Slobodanka Prekajski, dipl. ing. arh.

slobodanka.prekajski@beoland.com