Belgradee’s residential market recorded transactions worth €479.6 million during Q1 2024, down by around 11% compared to the same period of 2023, but the overall amount spent is still high, according to a report by real estate agency Cordon.
Key conclusions:
- 75% of all transactions were cash while 25% were credit buyers. This is a slight increase in the activity of credit buyers compared to the same period last year when that percentage was 73%, which suggests that the market has somewhat adapted to high interest rates.
- The amount of turnover of all real estate at the level of Belgrade in the partially regulated market (incomplete documentation) continues to be high and amounts to around €285 million for Q1. This figure includes houses, garages, business premises, and land. Of this amount, about €213 million were transactions on the primary market (purchases directly from investors), which shows that proper documentation for new real estate is still an advantage. A part of this amount refers only to the delay in issuing the use permit for the buildings at the time of the transaction
- Q1 2023 is the moment when the market slowed down significantly, and today it is almost 18 months of a new reality, with no real indications that there will be a rapid shift. However, the market is still suitable for the construction of apartments, as individual projects (not the entire market like a few years ago), can still prove it through the number of apartments sold.
- The European Central Bank lowered interest rates, while the American FED will do it only once before the end of the year, and this represents an unusual sequence of events compared to earlier periods.
