Some perceptions die hard: Many consider Serbia as a war-torn country still reeling from the Milosevic era but the reality of the country's growth and resurgence is actually very promising for those looking to invest in the Serbian property market.

Belgrade, Serbia's capital city, was so badly damaged during past wars, the region has recently benefited from modern reconstruction. Millions of dollars has gone into creating a 'New Belgrade', where infrastructure and brand new commercial and residential developments are being built the highest of Western standards.  

As there is currently a lack of quality housing in the city, whilst developments are under construction, many overseas investors are set to capitalise on rising rental prices due to huge demand for superior Serbian property. The most popular areas for investors in the Serbian property market are currently the Belgrade districts of Senjak and Dedinje, as well as areas of Vracar, Banovo, Brdo, Vozdovac, Zvesdara, Beaanijska, Kosa and Zemun.

Although the Serbian property market is currently restricted by a lack of affordable mortgage options, the future looks brighter as fiscal policies in the country are set to come in line with those of the EU in the coming decade. Serbia also has a tax regime conducive to investments and foreigners eligible to buy freehold Serbian property have the right to purchase the land on which it sits.  

As well as becoming an increasingly popular tourist destination – the numbers of tourists increased by 90 per cent between 2000 and 2004 – Belgrade is also attracting an increasing amount of expatriates and foreign workers due to city's radical economic overhaul.

Belgrade is now The Financial Times 'City of the Future for Southern Europe/South-East Central Europe' and 2.5 billion US dollars have already been committed in Foreign Direct Investment this year. Microsoft has also established a global development centre in Belgrade and the Serbian government has an active Foreign Investment Incentive Strategy promoting the country as a good place to invest.   

Thankfully, though, the level of investment required to buy into the Serbian property market is considerably less than this. A three-bedroom, two bathroom apartment in Belgrade with cable TV, high-speed wireless Internet and security systems is currently on the market at 120,000 euros. The apartment is 100 metres from market-place Kalenic pijac and Temple St. Sava and is available through Ezilon Real Estate.

Alternatively, a 13,813-square-metre plot of land located along the Jurija Gagarina Street in New Belgrade is currently available through Some Place Else. It is a commercial building with the option of construction of three floors and possibility for an underground level. The land is priced at 7,931 euros. 

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Picture courtesy of SomeplaceElse
Article first published 15th May 2007