Offices for rent in Belgrade become less affordable
The geopolitical conflict in Europe has forced many people to look for a new place of residence in another country and adapt to its way of life. It is not only about ordinary people, but also about companies that transport their employees to other countries for their safety.
Serbia has become a popular destination, where a large number of foreigners have arrived. Such trends have made adjustments in the local real estate market, and changes are noticeable both in the sector of housing and commercial properties. For example, in Belgrade, with the influx of people, offices for rent are becoming less affordable.
According to the company CBS International, the demand for such premises doubled in 2022. And the increase in demand for space contributed to an increase in supply. At the moment, in the Serbian capital, there are more than 1 million square meters of office premises, about 200 thousand square meters – under construction.
While in previous years the demand on the Belgrade office real estate market was about 100 thousand square meters, in 2022 this figure was at the level of about 200 thousand square meters. Such dynamics have significantly reduced the availability of premises, and now it is extremely difficult to find an object for rent that will perfectly meet all the given parameters. Vacancy of office space is only 3%.
As for the cost of renting, the rates in the capital market are in the range of 10 to 70 euros per month per square meter. Buying office space will cost 2-7 thousand euros per square meter. According to official statistics, there were 2545 transactions for the purchase/sale of commercial premises in 2022. This figure is 170 units more than what was recorded in 2021, and 850 more than in 2018.
It should be noted that the rent of such premises in Serbia has been quite high for several years, but the influx of newcomers from other countries has contributed to additional price increases. As a result of the rise in price, small companies suffer first and foremost, and a number of them rent spaces or the whole premises in Belgrade’s co-working halls. This option is becoming more and more popular, and there are already problems with supply, some companies are even queuing up to rent certain facilities.
Experts hope that the availability of offices for rent in the Serbian capital market will soon increase. Currently, a large number of projects are under construction, which will be able to cover the demand. In addition, in view of the demand, a number of developers are planning to build new facilities. However, it is likely that the increase in supply will not be able to stop the increase in prices for rent and purchase of office premises, and the market will continue its growth this year.