What is going on with property market in Novi Sad?
I have to write this, as I just can not believe what is going on with property market in Novi Sad, Vojvodina, and Serbia in a last few months. It all started in September when we have three foreign investors contacted us to find a land in Novi Sad to build commercial and residential real estate. That was good news after ‘slow summer’ days.
Now, October and November brought twelve more investors from abroad looking to build shopping malls, factories, outlets, high-rise commercial and residential buildings (even one interested in buying whole part of the old town), and so on. Great, isn’t it? Yes, if you look as it is great for the city development, expansion of businesses, more employment opportunities, to name just few. However I ask myself. What is going on, what they (investors) know that I (or we) don’t know?
Not only investors are knocking on our door every week, there is another issue I am concerned with. Prices of apartments have increased 20 to 30 percent in last three months, and what is more shocking to me is that there is a luck of one and two bed roomed apartments for sale, not to mention studio apartments that you cannot buy anywhere in Novi Sad. Then, I have started research, and what I have found out is even more alarming than this. Everyone is waiting for prices to increase MORE, and have stopped sales of available properties!!! So, again I asked myself: What is going on? More research, more talking to the people in RE business (even started watching TV and news again), talking with some politicians, and the global conclusion of all will point to something like this:
There is a high demand on available properties in Novi Sad, whole Vojvodina Province, Belgrade, and larger cities in Serbia.
Why? Is it politics? Are we going to enter European Union very soon? Is it because of Kosovo? Is it because the labor force in Serbia is most educated and work for lowest wages in Europe? Maybe is Serbian advantageous position as a cross road to Eastern Europe and Russia? Or, is it something else not mentioned above…
I didn’t mention that banks are competing with loans for apartment buyers, didn’t touch the issue of current salaries (that are same, or even lower on average than three months ago), unemployment rate, other price increases… If you know the answer, please tell me what is going on? Even though I really like foreign investors coming to our country, I cannot understand that sudden demand in such a short time, and when these prices swell will stop?
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