Key findings

• The market is still growing, as the total transaction volume of €712 million recorded in Q2 2022 is significantly higher compared to Q2 2021’s €557 million.
• The total volume represents a significant increase compared to the first quarter of 2022 when the turnover was €562 million. A potential explanation is the war in Ukraine as these types of events tend to influence the sale of apartments in Belgrade in a positive direction. Real estate investment is still the safest investment option for many Serbians and the increased numbers amidst panic and fear for the mid-term are reflecting that.
• 71% of all transactions were paid by cash, which is a slightly higher share compared to the prior year, again indicating that individuals with excess cash were fleeing toward real estate.  This trend also shows that the market is less subject to volatility as a result of increased interest rates which are already happening and are set for a further increase in the mid-term, since the share of credit buyers is significantly smaller compared to the cash buyers, as it has been for the past 5 years. The average loan amount is less than €50,000, which suggests that one portion of official credit buyers are buying apartments as an investment and only financing a small portion through credit.
• Prices are still showing double-digit increases compared to Q2 2021.
• The total amount of apartments transacted in Q2 2022 is a little less than 5000 units, so it is unlikely that the purchases made by Russian and Ukrainian citizens had a big impact on the market as a whole or on prices. The number of transacted newly built apartments is slightly higher compared to some previous quarters, but that may not be the case going forward, as it will largely depend on the supply of new apartments in the mid-term.