mysite blog

Office Real Estate News

Mon, 25 Jan 2010 18:01:00 +0100

Office Real Estate Highlights

In the first half of 2009, Belgrade total office space (Class A/B) increased by around 32,500 m2 (5.14%). At mid 2009, the total Class A and B office space in Belgrade reached approximately 626,000 m2. In the first half of 2009, the office space supply has exceeded the demand, causing the rising vacancy rate and decreasing net rents.

Presently, the overall vacancy rate (Class A and B) marks 16%, with the highest rate in the suburban area (26%) and the lowest in the CBD (13%).
Net rents have marked a decreasing trend in 1H 2009, coming to the average EUR 14.1/m2/month for Class A and EUR 11.5/m2/month for Class B office space.

Source: Colliers International Market Overview 2009

Retail Real Estate News

Mon, 25 Jan 2010 14:48:00 +0100

Retail Real Estate Hightlights

The first half of 2009 was characterised by the opening of the largest shopping mall in Serbia-Usce Mall, comprising 43,500 m2 GLA, whichh introducted a dozen of international retail brands to the Serbian market. Another important retail project that was opened is Beogradjanka department store, offering a comprehensive tenant mix on 12,000 m2 GLA, located in the primary shopping zone of Belgrade.

Due to the economic crisis, retailers have generaly grown more cautins concerning their expansion plans for 2009, which has resulted in lower pre-opening occupancy rates of projects under construction. Rental levels in Belgrade have remained stable in the primary and secondary zones, whereas other areas have experienced a decrease of 15-20%. Rents in retail projects currently under constructin have been somewhat reducted, as a result of a decreased demand.

Source: Colliers International Market Overview 2009

Residental Buildings Overview

Sun, 24 Jan 2010 16:55:00 +0100

Residential Highlights

Residential market of Serbia remained dormant in the first half of 2009 in terms of new construction and sales transactions. In order to revive residential construction, the government brought the Low on urban planning and development which will significantly reduce the time needed for obtaining a construction permit.

The Government also initiated plan of incentives for both credit buyers and developers, which is expected to boost residential construction and sale of new apartments
Residential demand decreased due to stricter crediting policy and uncertainty of interest rate levels. In Belgrade, the majority of new projects with project financing decreased their sale prices by 10-15%, whereas apartments in existing buildings recorded a decrease of 5-22% depending on the location and quality.
The highest curreent asking sales prices for new developments are recorded in Stari grad and Dedinje with the levels of EUR 2,200-4,000 per m2, followed by Vracar and New Belgrade.

Source: Colliers International Market Overview 2009