Belgrade Takes 4th Place Among the Developing Cities in Europe

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The Economist has published the rating of European cities that are best suited for permanent residence. The Serbian capital was not on the Top 5 – and neither was it on the Top 10. However, Belgrade became one of the cities that shows the most tangible progress and is about to reveal its full potential. Let’s evaluate the prospects of the Serbian capital as a place to live and analyze the situation in the local housing market.

Belgrade is One of the European Leaders by the Speed of Development

An average European city is as a rule a perfect place to live, and this is especially true if we talk about the residential areas in the central and western parts of the continent. Most of them have been at the top of different world and regional ratings of the most liveable cities for many years. They still hold their titles despite the numerous negative changes of geopolitical and economic nature that have occurred in recent years.

The leading cities periodically change places, and the Serbian capital may well become one of the leaders during one of the future reshuffles. According to experts, Belgrade is making impressive progress right now.

The experts of the well-known British journal, The Economist, evaluate cities around the world on an annual basis to determine which of them are best suited for life. Residential areas are assessed on the basis of 6 categories:

culture
environment
education
healthcare
infrastructure
stability

In 2023, the list of leaders in the rating compiled by The Economist has not changed significantly. Vienna retained first place in the list of the world’s best places to live by scoring 98.4 points out of 100 possible ones. Copenhagen, Zurich, and Geneva took second place. Budapest, Prague, and Bratislava obtained the highest scores in Eastern Europe.

However, the Serbian capital was on the list of the cities that improved their results best of all – along with Bratislava, Bucharest, Warsaw, and Stuttgart. According to research authors, Belgrade managed to achieve progress mainly due to considerable improvement in the standards of medical services.

The most suitable cities for living in Europe. Source: The Economist

In 2023, the traditional European leaders suddenly found themselves several positions lower. The research authors say that this is mainly connected to the improving situation in the cities outside the Old World rather than problems in Europe.

For example, Edinburgh dropped to the 23^rd place in the global rating, which is the most substantial drop among all the cities considered as part of the research. The indicators of other British cities, including London and Manchester, have sunk to lower positions as well.

Changing positions of some cities in the city liveability index. Source: The Economist

However, European cities have really become worse places to live in a number of cases. The stability subindex based on the evaluation of the crime rate, frequency, and intensity of civil unrest has deteriorated in some cities. Last-year disturbances in Stockholm provoked by the plans of the ultra-right group to burn the Koran made the Swedish capital sink to the 22^nd place in the rating.

The crisis in Ukraine logically resulted in Kyiv’s lower rating. Forest fires and abnormal heat in the summer of 2023 were not taken into account for rating purposes, but it is quite possible that these events will influence the results of the next report. However, if we believe the estimates made by The Economist, Europe remains the most suitable place for living in the world right now.

Buy or Rent?

If you are a foreigner planning to relocate to Belgrade, accommodation is usually one of the top priorities. Should you buy an apartment in the Serbian capital? However, renting one is easier and more affordable, so maybe you should opt for it? Of course, it is better for newcomers to rent accommodation while they get acquainted with the city – not everybody will like Belgrade, and you may be one of these!

However, buying an apartment has a lot of advantages. For example, if you buy real estate in Belgrade (at any price), you become entitled to a simplified procedure when it comes to obtaining Serbian residence. All you need is to buy enough living space per one dweller. Our experts will help you obtain Serbian residence permits and tax residency through investment in real estate.

Would you like to buy real estate in Serbia or any other European country without paying too much, waiting for a long time, or facing pitfalls that a foreigner cannot know about? Are you studying real estate markets outside the Old World? Our experts will select a liquid asset within short terms and help you conclude a transaction on beneficial conditions. Fill out a form to book a consultation where you will find out much more!

Market analysts and real estate agents expect foreign citizens to become very active in the real estate market starting from September 2023. The increasing demand will inevitably result in higher prices. It means that potential buyers should hurry up to close their transactions. If you want to speed up your search, please consider the following options by proven developers:

What is the Cost of Real Estate in Belgrade?

The analysts polled by EuroNews agency note that the real estate market in the Serbian capital is stagnating as of July 2023. Experts think that the situation will not change much by the end of the year. There are no grounds to expect a considerable growth in the cost of square meters, but there are no prerequisites for any decrease, either.

The outskirts of Belgrade have always been considered a cheaper solution on the real estate market. And though the prices are much higher than several years ago, the outskirts are the only opportunity today to find real estate at a price of below 2,000 euros per square meter (in old and newly-built houses). The price per square meter practically has not changed as of the first six months of 2023 if we consider the outskirts and remote periphery. However, 2022 showed an increase in the cost per square meter in these districts by 10% on average in annual comparison.

Let’s have a look at separate locations:

Voždovac. Experts called this location one of the most attractive ones if you want to buy an apartment on the outskirts of Belgrade. Its main advantages include proximity to the center and well-developed infrastructure. However, these features do not come for free: the average cost of accommodation in Voždovac is among the highest in the selection (2,450 euros per square meter).
Surčin. The demand for local apartments increased sharply after the district became a potential venue for the organization of EXPO-2027 and plans were announced to build a national stadium here. Analysts predict further price increase in this part of Belgrade. Today, the cost of a residential square meter in Surčin ranges from 1500 to 1700 euros in new buildings. The apartments in old buildings are 100-200 euros less expensive. A square meter in the parts of Surčin that are located the farthest from the center costs 200 euros less than on average in the district. A large number of apartments have been recently sold relatively quickly in Surčin, which means that the real estate here is easy to sell.
Mirjevo. In addition to Surčin and Voždovac, the district of Mirjevo with a large number of new buildings is enjoying high popularity. This part of the agglomeration still has some space for the construction of new buildings. The cost of a square meter in a new building in Mirjevo ranges from 1,600 to 1,850 euros depending on materials and infrastructure. If this is an old building, one square meter will cost about 100 euros less.
Krnjača and Borča. These districts are quite popular as there is low-priced accommodation here. The cost per square meter in Krnjača ranges between 1,500 and 1,600 euros in a new building, and it increases as the buildings approach the Pančevo Bridge. Borča now has all the infrastructure you need for a comfortable living, and it offers housing where a square meter costs from 1,500 to 1,650 euros.
Palilula. In May 2023, the cost of apartments in new buildings dropped by 7.7 percent here in annual comparison, which is the most substantial decrease among all districts in Belgrade. Today, the average price of new accommodation is 2,300 euros per square meter. For comparison, the average price in this municipality made up 2,963 euros per square meter in February. On the other hand, the price of secondary housing rose by 12 percent. Experts explain this price drop by changes in the calculation methodology. The territory of the district expanded thanks to a part of Borča and Krnjača. The new locations are not very pleasant places to live in spring due to high waters and mosquitoes, so housing is not in high demand there. As a result, the average price in Palilia dropped down.
Visnjicka Banja. The price per square meter of accommodation in this location makes up about 1,600 euros on average if you choose a new building. If you opt for high-rise buildings located closer to the city center, be prepared to pay around 1,800 euros per square meter. Some premium-class buildings may have a higher cost per square meter (1,900 euros).
Other districts. A square meter in a new building in Rakovica is offered at a price ranging from 1,800 to 1,900 euros. A square meter in Batajnica has been quickly growing in price over the past few years and now costs 1,800 euros on average. In Jajinci, you will have to pay from 1,700 to 1,800 euros. In Železnik, the square meter costs from 1,700 to 1,800 euros.

The market analysts that comment on the situation on the city outskirts note that the apartments bought there were in most cases financed with the help of mortgage loans. This is the reason why the outskirts of Belgrade suffered most from the growing interest rates at the background of the deteriorating economic situation. It was there that the demand sank most of all, resulting in price stagnation.

Today, a square meter in the locations closer to the city center costs much more. You will pay at least 2,200 euros per square meter depending on the municipality. The prices on the outskirts and closer to the center are expected to grow in autumn after the expected normalization of the situation in the field of mortgage loans and at the background of the growing demand.

However, a potential buyer that chooses easy-to-resell real estate in Belgrade should pay attention to some aspects beyond the location. The building exterior, choice of materials, façade condition, additional equipment, and infrastructure also influence the cost per square meter.

For example, pay attention to availability of a pool, as well as kindergartens, schools, shops, banks, or pharmacies in close proximity to the building. Some popular residential complexes have plenty of such facilities around them, which explains why the prices in this case are much higher than on average on the market. Still, the location limits the price per square meter, and it will be hard to resell the real estate in the future at a price above a certain threshold level.

If you are ready to start choosing accommodation to buy, we recommend starting the procedure by opening an account with a local bank, which will simplify payments for the services of realtors, lawyers, appraisers, notaries, as well as money transfer to the seller. Pay attention to the following turnkey services:

Help with Relocation to Serbia

Are you considering a possibility of relocation to Serbia? Would you like to settle down in Belgrade? Our experts will help you take care of your accommodation and obtain a Serbian residence permit and tax residency by registering a company or investing in real estate.

Find out more by booking a free personal session! Send a request using the feedback form to one of the phone numbers above or to our corporate email.

The Economist: Belgrade Takes 4th Place in the Rating of Europe’s Developing Cities

Belgrade is One of the European Leaders by the Speed of Development

Buy or Rent?

What is the Cost of Real Estate in Belgrade?

Help with Relocation to Serbia