Serbia has emerged as a dynamic hub for commercial property investment in Southeast Europe, driven by its strategic location, competitive costs, and improving business climate. As a non-EU country on the accession path, Serbia benefits from preferential trade agreements with the EU, Russia, China, and Turkey, making it attractive for regional logistics and manufacturing operations.
Key Cities and Sectors:
Belgrade, Novi Sad, and Niš are the main commercial centers. Belgrade, the capital, dominates the office and retail space markets, with a growing pipeline of modern developments. The retail sector has seen robust growth, supported by rising consumer spending and the expansion of international brands. Novi Sad is gaining traction in the tech and IT sectors, while Niš is emerging as a logistics and industrial base due to its proximity to key transportation corridors.
Office Market:
Belgrade’s office market is maturing, with increasing demand for Class A spaces. Rental yields average between 7–9%, which is high compared to Western Europe. Coworking and flexible office spaces are expanding rapidly, supported by a growing startup and tech scene.
Industrial and Logistics:
Industrial and logistics properties are in high demand, bolstered by Serbia’s position on Pan-European transport corridors and ongoing infrastructure upgrades. Foreign direct investment (FDI) in manufacturing and automotive sectors continues to drive demand for warehousing and production facilities.
Legal and Investment Climate:
Foreign investors can purchase commercial property directly, with few restrictions. The government offers tax incentives in designated free zones and supports public-private partnerships (PPPs) in infrastructure and urban redevelopment.
Outlook:
With continued infrastructure investments, growing FDI, and a stable macroeconomic outlook, Serbia’s commercial real estate market is poised for sustained growth. Investors should monitor political developments and regulatory changes tied to EU accession, which could impact future returns and compliance requirements.