Belgrade, Serbia – Real estate Market overview H1 2018


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Serbian investment market update

Serbian GDP grew by 4.4% in Q2 2018 yoy and inflation dropped to 2.3%. This stable economic growth, government reforms and other incentives have secured a stable influx of investments in Belgrade’s real estate market. The appeal of the market has been confirmed by the continuous expansion of investors already present on the market such as GTC and AFI in the office space, as well as by new investors such as CTP in the logistics, who announced their EUR 75m of investments in the country in July 2018.

Selected investment transactions

  • EUR 75m planned investments in Serbian logistics sector by CTP (July 2018)
  • EUR 46m acquisition of Mercator Center, a 22 000 sqm shopping center in New Belgrade, by the local investor MPC Properties, backed by the Dutch-based Centurion Venture Capital
  • EUR 39m acquisition of the 18,000 sqm Belgrade Business Center by GTC

Prime office yields for office segment at 8.5%, for retail – 8.00% and for industrial – 9.75%. Positive trends in Belgrade office market had an effect on the yields, which compressed to the level between 8.25-8.75% for modern office space.

Belgrade office market update

Prime office rents remained stable, ranging between EUR 14.5-16.5 sq m/month for Class A office buildings and between EUR 11-12/sq m/month for class B premises. The overall vacancy rate dropped to app. 5%. The total supply remained at the level of 842,000 sq m of GLA.

Active period expected ahead with several development projects in the pipeline. In February 2018 MPC Properties commenced the construction of the second Usce Tower (22 floors). The building will have approx. 23,000 sqm of GLA. GTC is currently developing a large-scale Class A project Green Heart – total 46,000 sqm GLA upon completion. Israeli investors AFI Europe and Shikun & Binui Group are currently developing 14,000 sq m large office tower Business Garden, within their downtown residential and commercial complex Central Garden.

Market demand was driven mostly by relocations in New Belgrade, and the demand for new and modern office space. First half of 2018 recorded a strong activity in the market, with a take-up of 71,000 sqm vs. 97, 850 sqm for the full 2017, majority of it for new leases and preleases.

The most active submarket remains New Belgrade, with increasing activity also recorded in the city center. The most active sector was IT, followed by the financial services and FMCG industry.

In comparison with other SEE countries, Belgrade office stock is still limited. However, at the moment, Belgrade office market witnesses a healthy development pipeline with several class A office schemes.


Development pipeline

  • Green Heart/ New Belgrade/ 46,000 sqm/ GTC Developer (expansion of GTC Square)
  • Skyline Belgrade/New Belgrade/ 30,000 sqm/ AFI Europe
  • Navigator Business Center 2/ New Belgrade/ 27,000 sqm/MPC Properties
  • Usce Tower 2/New Belgrade/ 23,000 sqm/ MPC Properties
  • Business Garden/ City Center/ 14,000 sqm/ AFI Europe and Shikun & Binui Group
  • N-House/ New Belgrade/ 10,000 qsm/ Napred (local developer)
  • Sirius Offices 2/ New Belgrade/ 10,000 sqm/ ERSTE Bank
  • Ziegel House/ Vrachar/ 5,000 sqm/ Trgomen nekretnine


See our other corporate real estate market reports for Eastern Europe:

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