Low Vacancy Rates and Stable Rental Prices
According to the latest data, the vacancy rate for Class A office spaces was 2.1%, while Class B spaces had a slightly higher rate, but still below 4%. Rental prices for premium office buildings have remained stable, averaging around €18 per square meter per month. This stable market environment provides favorable conditions for investment in commercial properties.
Impact of Residential Construction on Commercial Spaces
Although the residential market is experiencing rising prices and high profitability, it also affects the commercial real estate market. Investors focused on residential projects often pay more for land, which can reduce the availability of land for commercial developments and increase rental prices. This phenomenon is known as "unfair competition" between residential and commercial property development.
Potential for Institutional Investments
The commercial real estate market in Serbia is still not fully developed, which presents an opportunity for institutional investors. Compared to cities like Sofia and Zagreb, Belgrade has significantly less commercial space available, indicating room for growth and expansion. Investors with favorable capital can leverage this potential to achieve long-term profits.
The commercial real estate market in Serbia offers significant potential for investors ready to recognize and seize available opportunities. Although residential construction currently dominates attention, commercial property development represents a sustainable and profitable market segment. Investors who choose to invest in this sector can expect stable income and long-term appreciation of their investments.
