Written By: Jacquelyn Annete García Vadnais
With Serbia’s upcoming application to the European Union in 2020, it has become a hot spot for real estate investors to consider. Aside from soon prospectively joining the European Union, Serbia has many potential areas where real estate investors stand to make substantial gains. One particular city in Serbia that is already gaining traction with real estate investment is the capital city of Belgrade. In order to understand more about why Belgrade, Serbia is a wise locale to invest in real estate, it is recommended to learn a little bit about the history, legal policies for investors, and the current economic and real estate environment in Belgrade.
Background of Belgrade, Serbia
Serbia has a distinct history that dates back to the 6th and 7th centuries when the Serbs first arrived in the Balkans. When the Serbs first settled in the Balkans until now, they have formed a border that connects the East and West. The Ottoman Empire came into power and ruled Serbia until the 17th century. When the Hapsburgs conquered the Serb’s territory in the late 17th century, it began a divide and displacement of the Serbs that has lasted into modern times and it was not until 1878 that Serbia became an independent country. That said, WWII caused Serbia to be a part of Yugoslavia after WWII and it was not independent once more until the aftermath of the civil wars in Yugoslavia in 2006. Understanding Serbia’s unique history is important in assessing its rate of development for real estate investment. After the conflicts in the 1990’s, Serbia is now a well-organized locale in Europe that is ready to enter the European Union, thus, making it a great target for global real estate investors. Modern Belgrade is culturally and ethnically diverse, with many opportunities for sightseeing, top class restaurants, museums and architecture. Spiritual life in the city is also vibrant, as there are several churches, a synagogue, as well as a historic 14th century mosque located in the city center.
Advantages to Investing in 2018
Ease of Investment: The Serbian government actively encourages foreign direct investment within Serbia. Foreign citizens can easily obtain property if it is necessary for their business and that is not located near military land or on construction plots. In terms of residential real estate, foreign citizens can easily acquire real estate. Typically, the real estate commission for agents is around 3%. In terms of additional fees, there is a registration fee of €26 (~30.43 USD), a 2.5% Transfer Tax, VAT (first transfer right of property pays 8% and the use of new buildings is 20%), and a Court Fee of €325 (~380.36 USD). By merely working with a local real estate agent and lawyer to check property title information, the process to purchase real estate in Belgrade for foreign citizens is quite streamlined.
Low Cost of Living: Currently, Belgrade has a very low cost of living. This is partially due to Serbia’s recovery since the wars in the 1990’s and the fact that their country has not quite joined the European Union as of yet. Buying up real estate in Serbia will be a wise decision at the present moment because prices are quite low, but will increase upon Serbia being admitted to the European Union in 2020. These increases will occur due to the amount of foreign direct investment that is already occurring in Belgrade and the need for those employees to locate real estate while residing in Belgrade. Real estate investors can expect rental yields in Belgrade to range between 4.20% and 6.20%. In the coveted area of Savski Venad has a price range of €1,582 to €2,050 per square meter (~172 USD to ~222.90 USD per square foot). In New Belgrade, the price per square meter ranges from €1,351 to €1,531 (~146.89 USD to ~ 166.46 USD per square foot).
Internet Connectivity: Belgrade has a very modern and high quality of life available to citizens and residents alike. Due to this, Belgrade has a very high level of Internet connectivity that is affordable and easy to install. The connectivity that Belgrade has to the Internet has a positive impact on their real estate prices in terms of future investors wanting to reside there since it allows for commerce to be conducted and for residents to regularly have access to a strong Internet connection in their homes.
Shortage of Luxury Apartments: One unique aspect of Belgrade is that there is a shortage of luxury apartment properties. Belgrade does not currently have a high quantity of luxury suburban housing that many other European cities have. For this reason, there are many investment projects underway to create more luxury apartments to meet the requirements of individuals that want to invest in business and reside in Belgrade or want to invest in rental properties to rent to tenants in Belgrade. By investing in new construction, it may be possible to have an excellent yield on investment.
Final Remarks
Due to Serbia’s success in the last decade of improving their country’s safety and economy, Serbia now is attracting a great deal of real estate investment. In the years since the 2008 global financial crisis, the market has stabilized, which makes investing in property in Belgrade a great strategic real estate investment for a country that is just about to enter the European Union. Once Serbia does enter the Union, the price of property values will increase substantially due to the European Union’s business opportunities offered between member states and the need for those individuals to relocate to Serbia should their company take them there. Additionally, the fact that an investment in Serbia will pave a path to Permanent European Union Residency for foreign citizens will attract another pool of investors that want properties to take advantage of more affordable European Union school tuition rates as well. By investing in a city such as Belgrade now, global real estate investors truly do have a great and stable investment to gain that will substantially increase in value in the coming years.
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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/MBA from Suffolk University, and LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
With Serbia’s upcoming application to the European Union in 2020, it has become a hot spot for real estate investors to consider. Aside from soon prospectively joining the European Union, Serbia has many potential areas where real estate investors stand to make substantial gains. One particular city in Serbia that is already gaining traction with real estate investment is the capital city of Belgrade. In order to understand more about why Belgrade, Serbia is a wise locale to invest in real estate, it is recommended to learn a little bit about the history, legal policies for investors, and the current economic and real estate environment in Belgrade.
Background of Belgrade, Serbia
Serbia has a distinct history that dates back to the 6th and 7th centuries when the Serbs first arrived in the Balkans. When the Serbs first settled in the Balkans until now, they have formed a border that connects the East and West. The Ottoman Empire came into power and ruled Serbia until the 17th century. When the Hapsburgs conquered the Serb’s territory in the late 17th century, it began a divide and displacement of the Serbs that has lasted into modern times and it was not until 1878 that Serbia became an independent country. That said, WWII caused Serbia to be a part of Yugoslavia after WWII and it was not independent once more until the aftermath of the civil wars in Yugoslavia in 2006. Understanding Serbia’s unique history is important in assessing its rate of development for real estate investment. After the conflicts in the 1990’s, Serbia is now a well-organized locale in Europe that is ready to enter the European Union, thus, making it a great target for global real estate investors. Modern Belgrade is culturally and ethnically diverse, with many opportunities for sightseeing, top class restaurants, museums and architecture. Spiritual life in the city is also vibrant, as there are several churches, a synagogue, as well as a historic 14th century mosque located in the city center.
Advantages to Investing in 2018
Ease of Investment: The Serbian government actively encourages foreign direct investment within Serbia. Foreign citizens can easily obtain property if it is necessary for their business and that is not located near military land or on construction plots. In terms of residential real estate, foreign citizens can easily acquire real estate. Typically, the real estate commission for agents is around 3%. In terms of additional fees, there is a registration fee of €26 (~30.43 USD), a 2.5% Transfer Tax, VAT (first transfer right of property pays 8% and the use of new buildings is 20%), and a Court Fee of €325 (~380.36 USD). By merely working with a local real estate agent and lawyer to check property title information, the process to purchase real estate in Belgrade for foreign citizens is quite streamlined.
Low Cost of Living: Currently, Belgrade has a very low cost of living. This is partially due to Serbia’s recovery since the wars in the 1990’s and the fact that their country has not quite joined the European Union as of yet. Buying up real estate in Serbia will be a wise decision at the present moment because prices are quite low, but will increase upon Serbia being admitted to the European Union in 2020. These increases will occur due to the amount of foreign direct investment that is already occurring in Belgrade and the need for those employees to locate real estate while residing in Belgrade. Real estate investors can expect rental yields in Belgrade to range between 4.20% and 6.20%. In the coveted area of Savski Venad has a price range of €1,582 to €2,050 per square meter (~172 USD to ~222.90 USD per square foot). In New Belgrade, the price per square meter ranges from €1,351 to €1,531 (~146.89 USD to ~ 166.46 USD per square foot).
Internet Connectivity: Belgrade has a very modern and high quality of life available to citizens and residents alike. Due to this, Belgrade has a very high level of Internet connectivity that is affordable and easy to install. The connectivity that Belgrade has to the Internet has a positive impact on their real estate prices in terms of future investors wanting to reside there since it allows for commerce to be conducted and for residents to regularly have access to a strong Internet connection in their homes.
Shortage of Luxury Apartments: One unique aspect of Belgrade is that there is a shortage of luxury apartment properties. Belgrade does not currently have a high quantity of luxury suburban housing that many other European cities have. For this reason, there are many investment projects underway to create more luxury apartments to meet the requirements of individuals that want to invest in business and reside in Belgrade or want to invest in rental properties to rent to tenants in Belgrade. By investing in new construction, it may be possible to have an excellent yield on investment.
Final Remarks
Due to Serbia’s success in the last decade of improving their country’s safety and economy, Serbia now is attracting a great deal of real estate investment. In the years since the 2008 global financial crisis, the market has stabilized, which makes investing in property in Belgrade a great strategic real estate investment for a country that is just about to enter the European Union. Once Serbia does enter the Union, the price of property values will increase substantially due to the European Union’s business opportunities offered between member states and the need for those individuals to relocate to Serbia should their company take them there. Additionally, the fact that an investment in Serbia will pave a path to Permanent European Union Residency for foreign citizens will attract another pool of investors that want properties to take advantage of more affordable European Union school tuition rates as well. By investing in a city such as Belgrade now, global real estate investors truly do have a great and stable investment to gain that will substantially increase in value in the coming years.
--
Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/MBA from Suffolk University, and LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
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