It is also interesting to ask what will happen with the mentioned trends after the crisis from 2020, when the growth of real estate prices is somewhat reduced, and whether there will be a decline in that respect during and after 2021.
In the construction industry, it is difficult to assess in which direction things will go, given the large number of factors that affect it, such as the economic stability of consumers, which directly affects demand. Find out more about existing and expected real estate trends for 2021 below.
Did the works stop and to what extent?
To answer this question, we will return to the first half of 2020. For example, we will look at the situation from that period of the year in the capital of Serbia, which is economically one of the most developed cities in the region.
According to the data of the Republic Bureau of Statistics of Serbia, during the first six months, ie the first half of the year, not a single apartment was sold in as many as 20 municipalities in Serbia, while in the rest the purchase was reduced to a minimum.
The situation was similar in all countries of the region and the world, considering that in most countries there was still a state of emergency, and people did not want to invest money due to the impossibility of predicting the possible economic situation.
In that period, the works went slowly and in accordance with the situation, but since the middle of June, there has been an increase in the purchase of real estate, so the construction works were carried out on time. Real estate sales have returned in the direction of growth, and the pandemic has not brought down the price per square meter so far.
In addition, real estate prices are influenced by many other factors, so prices in Belgrade depend on the location, which is mostly the case in all major cities in the region.
During 2021, the trend of building a large number of residential and business premises throughout the country continued.
Rising prices for the purchase of real estate during 2021.
We realized that during 2020, there was no drop in the price of a square meter, despite the expectations caused by the crisis. After that, in the middle of the current year, it can be concluded that the value of real estate not only did not fall, but also increased to some extent. As one of the main indicators of this trend, we can single out the capital of Croatia.
According to the Central Bureau of Statistics, it is pointed out that in the second half of 2020, an increase of 1.2% of the average square meter was recorded in Croatia, while in Zagreb alone that percentage is significantly higher and amounts to 5.5%.
This trend continued during 2021. In addition to the economic crisis caused by the pandemic, the fall in GDP and the earthquake that hit Croatia, the real estate market was significantly shaken, so prices rose. One of the reasons is definitely the reduced sales of apartments, while the market is additionally affected by the low interest rate.
Real estate prices on the Croatian coast have risen even more drastically, so for a 30-square-meter studio apartment in Rovinj on the coast, it is necessary to set aside around 3,300 euros per square meter. On the popular islands, the value of real estate is even higher.
As for Montenegro, the situation with real estate on the coast is somewhat better, so you can find a minimum price per square meter of 1,500 euros, which of course depends on the location. For example, in Budva, you can find a studio of about thirty square meters for about 46,000 euros, according to data from local real estate agencies.
The value of a square meter in the center of Belgrade remained on average 2,500 euros, but the prices on the outskirts increased, so in Voždovac, the price per square meter per month increased by 1%, observing March and April. In addition, the current trend in Serbia is followed by other large cities such as Nis (growth between 5 and 15 percent) and Novi Sad, where the highest growth of 7.5% was recorded by the settlement Grbavica, observing the same period of the year.
What about the prices of renting apartments and renting office space?
During 2020, many landlords in the region raised rental prices due to their own poor economic situation, but changes soon followed.
During March 2021, in Serbia, the prices of renting three-room apartments decreased by as much as 20%, while a smaller decrease of 10% was recorded in apartments of smaller size, for which more is required. The fall in prices was caused by the fall in demand, which is the case in the two largest cities in the region, Belgrade and Zagreb.
These tendencies were mostly influenced by the coronary virus pandemic, due to which a large number of people work from home, so they had the opportunity to return to their native places. The same is the case with students, who follow a large part of their classes online. In addition, the number of tourists is lower than in previous years, and they accounted for a large part of the demand for apartment rentals per day.
In which direction will the situation develop during 2021?
Analyzing the situation on the global market, we see that a recession and a great economic crisis are announced, which will affect all activities. Also, observing the consequences of the crisis from 2008, when the real estate market took 5 years to recover, it can be said that the situation is not the brightest.
Looking at market flows in general, there is a period of growth, stagnation and decline in every economy. Specifically, until last year there was a high growth in the value of real estate, after that during 2020 and so far in 2021 there was a d
o stagnation and a slight increase, while for the very end of the current and the beginning of next year, a decline is expected.