Serbia A country with a bright real estate future
in Blog

Serbia, located in South-Eastern Europe, is a country that offers great potential for investment in the infrastructure sector. At the same time, the country has also become of great interest to investors for real estate, not only because of its central position in the Balkan region, but also as a transit country for the transport of goods and people from Asia to Europe. The construction market in Serbia, together with the infrastructure market, which was abandoned for years due to the war, is developing very positively with the help of international organizations, especially the EU. The demand for real estate is constantly increasing. Prices and yields remain attractive by European standards.

In the meantime, the country has provided important preconditions: Serbia guarantees absolute legal security for a foreign investor. The ownership position of a foreigner in Serbia is basically as secure as that of a local owner. A change of citizenship, e.g. in cases of later naturalization with accompanying release from Serbian citizenship, does not lead to an automatic loss of ownership of the real estate, as the entries in the land register do not require proof of citizenship. There is therefore no economic disadvantage.

The Serbian real estate market offers interesting returns for a wide variety of real estate asset classes. Offices or commercial properties, logistics, industrial space, rental properties or owner-occupied homes have different yields, which can change depending on availability. The interest in these asset classes also changes regularly according to market developments.

A key advantage for foreign investors: a holistic support in Serbia

A foreign investor needs holistic support; this is the only way to ensure that he achieves his return targets and does not have to take any avoidable risks. For foreign investors in real estate, the same challenges always arise. Apart from the valuation of the property, the avoidance of risks, many details are involved: the variety of local information sources that have to be consulted, the possible lack of a single up-to-date map that can be consulted, the lack of transparency with regard to levies on real estate or the misinterpretation of property ownership have all led to widespread problems for buyers from abroad in many countries. Language problems also have to be solved time and again. Every foreign investor needs comprehensive advice and help with many details.

Holistic support by a professional real estate company requires that they analyze and know exactly the respective interests and needs of the investor.

What are the investor's strategy and goals? What are his return expectations and what are his other needs? How is the investor to be assessed, what type of investor does he belong to - does he only have economic interests, is his need for security, for example, to be rated higher than his return objectives?  Why does he want to move abroad and to Serbia? What can he afford financially? What are the tax implications? Where does he want to buy? How does he want to use the property? How big should his possible home or office be? How old should the property he is looking for be?

Concrete answers must be found for all these and similar questions. A client can only be advised comprehensively if his interests and motivations have been analyzed in detail and are known. This does not always have to be economically motivated.

In practice, this also means that opportunities and risks at a location and for a real estate object must be recognized. A location analysis must be included in the purchase decision so that the real estate investment can be ideally aligned. Current market analyses and data will also be able to provide the investor with certainty. A comprehensive consultation also includes presenting alternatives and pointing out other options. A perfect real estate company will also be able to advise and inform the client comprehensively in other matters and areas. In this context, it can be about questions of culture, customs and traditions or questions of daily life.

A professional real estate company like CNZ will have the right solutions for all problems. Details in legal matters or translations are also taken care of holistically for the investor. Joint dealings with the authorities with the investor are a matter of course. However, a real estate company with a holistic approach will only be able to fulfil its tasks if it has familiarized itself with the culture and interests of the investor's country of origin. Even investors who come from the same language area can still have different mentalities and cultures. If you want to do business successfully with foreign investors, you have to be able to adjust to their mentality. A foreign investor feels immediately at ease when he realizes that he is being advised by people who have dealt with his country of origin.

The goal of a holistic real estate company will not only be to satisfy the client, but to exceed his expectations. The right service and advisory concepts are the future in the real estate industry.