APARTMENT RENTS IN BELGRADE HAVE RISEN BY UP TO 50%, DEMAND REMAINS HIGH

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Since the start of the of the war in Ukraine, apartment rental prices in Belgrade have risen by up to 50%. If the trend of low supply and high demand continues, in the next six months to a year, we will have a social problem, which the state will have to solve with some social housing program, as most developed countries do, told Nenad Djordjević, the president of the management board of Cluster Nekretnine, to Tanjug.

"There has been a big change since the beginning of the war. There are a large number of Russian citizens who came here to live and work. They started renting properties, and the demand increased, and rent prices rose up to 50 percent. We now have a situation where the supply is very small and the demand is high. We will see how long it will last, " said Djordjević.

He stated that a growth trend in the purchase and sale of apartments has been observed in the last five or six years, to the greatest extent after the end of the state of emergency caused by the pandemic, as well as when the war in Ukraine began.

"People want to invest their funds in what they consider to be the safest in the country, which is the real estate market, since in our country, unlike other countries, people do not trust securities, even in the banking sector, because of what happened in the nineties," Djordjević said.

He believes that the growth of Euribor, i.e. the growth of interest rates on the real estate market, will lead to a decrease in the number of credit buyers, but this will not affect our market.

"In 2021, around 31 to 32 percent of apartment purchases were financed with housing loans. "However, 14 percent of the total number of transactions financed by loans for the purchase of real estate, and I mean construction land, agricultural land, business space, is a small number compared to the size of the entire market," Đorđević points out.

Many people have withdrawn funds from savings and financed the purchase of real estate, Djordjević said, which is largely influenced by the psychosis caused by the war in Ukraine, as well as people's perception that this war can become global, and there is a fear of what will happen to the banking system not only in Serbia but in the world.

Source: blic.rs