In the first half of 2019 the Serbian real estate market grew by 12,50% in value albeit the number of sale transactions fell by 2,08%. There was a significant growth of almost 120% in the value of commercial properties transactions.
You may find out more about the Serbian residential and commercial property market performance in H1 2019 if you click on "READ MORE" button below
Financial Times has published its study by fDi Intelligence in Greenfield Foreign Direct investments (FDI) Performance Index 2019. Serbia topped the list as No1 scoring 11,92 closely followed by Montenegro who scored 10,82. In 2018 Serbia received €3.6 billion direct foreign investments.
In the press release the FT stated:
“Serbia tops the Greenfield FDI Performance Index 2019. The south-east European country is ranked number one in the annual study by fDi Intelligence, a Financial Times data division of which fDi Magazine is also a part, which looked at inbound greenfield investment in 2018 relative to the size of each country’s economy. Serbia scores 11.92 in the index, closely followed by Montenegro (11.49) in second place and Cambodia (10.82) in third. Last year’s number one, Mozambique, falls to 12th place after receiving less than half the number of FDI projects in 2018 as it did in 2017. Serbia takes over as the index leader, up one position from the previous year.
Serbia, with a score of 11.92, is attracting almost 12 times the amount of greenfield FDI that might be expected given the size of its economy. Serbia’s index score has improved by 1.33 index points. Although the country’s GDP growth was high in 2018 (14.8%), it received 107 FDI projects – 26 more than 2017 – growing by almost one-third. Automotive components, food and tobacco, textiles and real estate are Serbia’s leading FDI sectors, and combined they accounted for more than half (54%) of total inbound FDI projects in 2018.
Montenegro, which borders Serbia to the south-west and is a new entrant to the 2019 index, ranks second. Although relatively low, the country recorded 11 FDI projects in 2018 – its peak year since fDi Markets began recording FDI data in 2003.”
No doubt this is an excellent news for further prosperity of both Serbia and Montenegro.As a consultancy, we provide assistance in inward investment in Serbia and in Montenegro in the real economy, real estate and hospitality sector.
Healthcare Business International is an independent publisher based in London that covers healthcare services markets in Europe and across the Developing World. They aim to provide insights and comprehensive, systematic and structured coverage of healthcare systems in various countries including Serbia.
On 7th December 2018 HBI published an article about the privatisation of 10 health spa centres in Serbia under the title “Serbia prepares wholesale rehab sell off”. If you are an HBI subscriber you may read the article if you click here.
Prior to the article publication, HBI talked to our Zoran Mitic about the health spas and rehabilitation centres in Serbia. As a financial consultancy with expertise in health spa privatisation and finance, we are pleased to have been able to provide our input to HBI.
What is the state of the healthcare system in Serbia today? What the Serbian citizens can expect from the public healthcare system? In what situation is the private healthcare system and how it will develop in the future? What is the public and private spending for healthcare in Serbia?
Answers to some of the above issues you may find in our article “Private healthcare in Serbia: In the mode for growth and consolidation” if you click on the „READ MORE…“ button bellow...
The leading business portal in Serbia in its regular daily journal on 15th November 2018 published a shorter version of our article “Phases and documentation in financing a hotel development project” under the title “What one should know before deciding to invest in a hotel development”. The article (in Serbian) can be read here.
The readable statistics of the day shows that the article has been read 1,384 times, which classifies it as one of the most read news piece on that day. The full version of the article (in Serbian) you may read here.
The current 2018 has been the best year for property developers and investors in Serbia since the financial crisis of 2008. In the first half of 2018 the property market grew by value and by number of transactions. Although there is a record number of new developments, the prices of residential properties increased by 7,7% y-o-y on the national level. The investors and developers also poured money in office developments, shopping centres and logistic and industrial properties. The healthy demand keeps the yields from commercial properties on high level, one of the highest in Europe outside Russia.
The cause of such healthy property market are the fall in the unemployment rate and the GDP growth. More details about the property market in H1 2018 are packed in tables and charts you will find in our information “H1 2018 property prices in Serbia” if you click on the „READ MORE…“ button bellow.
Balkan Architectural Biennial –BAB is a cross border platform for cooperation between architects and real estate designers in South East Europe. At the 44th International Construction Fair SEEBBE held in Belgrade, Serbia form 18th-21st April 2018, BAB organised a conference Arena of Investments in Architecture and Urbanism–AIA. The main topic of the conference was investments in real estate and architectural developments of modern cities.
Participants of the conference were cities, municipalities, architectural and design companies, banks, real estate developers and investors as well as individuals from different professions who take part in the development of cities and territories...
ISouth-East Europe as well as Serbia are very rich with mineral waters used for convalescence from various illnesses, for health enhancement and for pleasure and joy. Some of them have been used as spa centres since Roman Times. Serbia alone has over 300 registered spa centres.
Wellness is a global tourism phenomenon that grows on average 10% per annum. There is ever increasing awareness that holiday time should be active and fulfilling (full of activities and health benefits) instead of passive lying on the beach, particularly for the middle aged well-funded population with a larger than average disposable income to spend on relaxation and health enhancement...
The Serbian leading business portal eGate (eKapija) published a Special Edition on 26th April “Real estate-The new investment cycle” with various articles about the current state of affairs of the Serbian real estate market. We have contributed with a piece “Real estate finance in Serbia post financial crisis”. Our article is in Serbian and is focused mainly on the local readership. Subsequently, we were asked by the editor to produce the same article for an international audience.
The article provides some interesting observations about the financial aspects of the Serbian RE market, prices and yield movements throughout the financial crisis since 2008 to 2016. The reported statistical data clearly shows the prices and yields are stable now or are showing improvements. Our observation is the dynamism of the market is increasing, there are more projects and more transactions. Investors’ confidence is growing.
In a nutshell, Serbia is an attractive investment destination for several reasons.
GROOMING FOR SALE
INITIAL RESEARCH & SCREENING
FDETERMINE NEED OR CAPITAL
Serbia got a new Government on 27th April 2014. Following the landslide victory at the early general elections held on 17th March 2014 when the Serbian Progressive Party won 168 out of 250 seats in the Parliament, SPP/SNS formed a coalition government with another two parties so that the Government now holds a very comfortable majority of over 200 seats in the Parliament. The now Prime Minister Aleksandar Vucic had called for the early general election seeking a mandate to carry out deep structural (and probably painful) economic reforms to turn Serbian sluggish economy to faster growth, increase efficiency, cut down on red tape, suppress corruption in the public sector, reduce the public deficit. Mandate he got and at a 3 hour long inaugural speech in the Serbian Parliament on 27th April the new Prime Minister presented the program of his Government, which is very likely to remain in power for the full 4 year term.