residential market overview 1h 2012
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TABLE 1
Project Location Developer GBA (sq m) Units no.
Paunova Banjica CPI group 10,000 N/A
Gardenia Apartments Zvezdara Aviv Arlon 32,000 263
Atrium 63 Novi Beograd Basal 11,000 94Ruzveltova Zvezdara Edil Italiana N/A 50
N/A New Belgrade Gradina Zemun N/A 108
Belgrade Residential Pipeline
Source: Coreside RESEARCH
As one of the of stimulating measures,the Serbian government has launcheda subsidized housing constructionproject in Vozdovac municipality on thesite of the former military barracksStepa Stepanovic, as well as on the Dr.Ivan Ribar site in New Belgrade:
Works on the residential complexStepa Stepanovic are currently in fullswing. 11 objects are already fullycompleted and the settlement received
its first residents on 3rd
of May. It isexpected that in the next year or two atotal of 4578 dwellings will beconstructed on 218,000 sq m of GLA.
Works on the residential complex Dr.
Ivan Ribar in New Belgrade started inApril 2012. The completion of the firstbuilding is scheduled for July 2013, andthe whole settlement for September2013. The total area of the complexwill amount to around 37,000 dividedin 707 housing units and 6 buildings.The structure of the apartments willvary from one to four bedrooms withthe size ranging from 30 sq m to 85 sqm.
Several large housing projects arecurrently being built in Belgrade inaddition to government subsidizedhousing construction projects:
West 65 is located in New Belgrade,near the Airport City business complex.The construction of the first phase ofthe project began in late 2011, which
includes construction of 152,437 sq mof residential and office space. On aplot size of 30,316 sq m investor PSPFarman will build 514 residential units.Scheduled completion of the entire
Developements
Research Team SERBIA
H1 2012Market Snapshot
Residential Market Overview
project is in 2013/2014.
Dunavske terase project is located in
Palilula municipality. The investorAramont expects the completion of thefirst phase in H1 2013, and thecompletion of the entire complex bythe end of 2013. Dunavske terase willamount to 57,000 sq m of GBA and270 units.
Imperijal Gradnjas project - Maxima
Center, with a total area of 42,000 sqm distributed amid 180 units, is locatedin New Belgrade. Objects GP5 and GP6within the Maxima Center project arefinished and the object GP3 with 84apartment units is still underconstruction.
Works on Harmony Apartments in
Vracar municipality are in full speed.Investor Pluto Capital is planning tocomplete the whole project with 11,000of GBA and 80 unites by the end of
2013.
Project Golf 8 in Banovo Brdo with atotal area of 31,000 sq m is planned tobe developed in phases. The first 2blocks have been completed while the
investor Peteg has scheduled thecompletion of the whole project for2012.
Marmil land is a project located in
Vracar municipality and will cover thetotal area of 15,000 sq m. Thecompletion of the whole project isplanned for March 2013.
Works on Alpha City project inZvezdara municipality started in 2011,and the completion is planned for April2013. The project amounts to around32,000 sq m and 300 housing units.
GRAPH 1
Pipeline developments in
Belgrade 2012 (sq m GBA)
Source: Coreside RESEARCH
152,437
57,000
42,000
11,000
31,000
15,000
32,000
West 65
Dunavske terase
Maxima Center
Harmony Apartments
Golf 8
Marmil Land
Alpha City
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Belgrade residential
In order to cope with the current crisis,the Serbian Government adoptedspecific measures to support theconstruction industry throughsubsidising housing loans. As a part of
the anti-crisis measures, theGovernment has decided to reducecitizens participation in the funding ofsuch loans from 10% to 5%. Allocatedfunds for these purposes in 2012amounted to RSD 1.2 billion, out ofwhich one half will be used for thepurchase of low-cost apartments in thesettlement Stepa Stepanovic and DrIvan Ribar. The subsidized housingconstruction projects in Vozdovac andNew Belgrade have been launched asone of the stimulating anti-crisismeasures.
As one of the of stimulating measures,the Serbian government has launcheda subsidized housing constructionproject in Vozdovac municipality on thesite of former military barracks StepaStepanovic, as well as on the Dr. IvanRibar site in New Belgrade.
According to the Statistical Office ofthe Republic of Serbia, the totalnumber of newly built apartments inBelgrade in 2010 was 5,048, which
represents a percentage decline of12.4% compared to 2009 when 5,759apartments were finished. According tothe unofficial data, the number ofnewly built apartments in 2011 rangedbetween 4,500 and 4,600, continuingthe downward trend in residentialconstruction in Belgrade.
According to National MortgageInsurance Corporation of Serbia, theaverage prices during H1 2012 werethe highest in Belgrade region reachingEUR 1,275 per sq m. However, the
average prices in other regions were50% lower when compared toBelgrade.
Prices
Depending on the location, quality andgeneral conditions of development theprices of apartments in Belgrade arestill the highest in the area of Dedinjewhere recorded price levels are up to
EUR 4,000 per sq m depending on theequipment and micro-location of thesubject property. It should be notedthat the asking prices for individualfamily homes in Dedinje in its mostelite parts range from EUR 4,500 toEUR 5,000 per sq m.
Dedinje is followed by the central partsof Belgrade (Vracar and Stari Grad),and prices of apartments in the newlybuilt complexes in New Belgrade. Thelowest prices are noted in suburbmunicipalities where the average price
range is from EUR 700 to EUR 1,000.
Rents
Rentals have been characterized by aquite steady demand in the last 18months.
Luxurious apartments located in thenew residential complexes, apartmentsand villas along the Bulevar Miracontinued to enjoy high rental rates in2012. The average cost of anapartment or house renting in Dedinje
in H1 2012 range from EUR 10 to EUR14 per sq m. A similar trend isobserved in the Stari Grad municipalitywith a recorded average monthly rentof EUR 10 per sq m. In the suburb,apartments were rented at the muchlower prices amounting around EUR 4to EUR 5 per sq m.
Yields
Yields have been generally quite stablein previous periods and range from 4%to 5%.
Market Snapshot | Residential H1 2012
Coreside d.o.o. have based this document on information obtained from sources they believe to be reliable, but they have not independently verified all the information presented in this document. Accordingly, no representation or warranty, express orotherwise implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained in this document, or otherwise arising in connection therewith.This report has been prepared by Coreside d.o.o. Beograd and has not been reviewed by Savills. This report and the valuation services provided by Coreside shall be outside the scope of the services provided by Savills. While Savills provides this reportin good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the Savills or by any of its officers, employees or agents in relation to the accuracy or completeness of thisreport and Savills hereby expressly excludes, to the fullest extent permitted at law, any liability arising in connection with the report, any reliance placed upon the report and the valuation services carried out by Coreside.
Jovan VujicAssociate Director+381 11 301 0000
Ivana KnezevicResearch Analyst+381 11 301 0000
Darko GrahovacConsultant+381 11 301 0000
Please contact us for further information
GRAPH 3
Average asking prices in
Belgrade(EUR/sq m)
Source: Coreside RESEARCH
0
1,000
2,000
3,000
4,000
5,000
StariGrad
Dedinje NewBelgrade
Vracar Suburb
min max
GRAPH 2
Average prices by region(EUR/sq m)
Source: Coreside RESEARCH
0200400600800
1,0001,2001,400
Q1 2011 Q2 2011 Q1 2012 Q2 2012VojvodinaSumadija and Western SerbiaBelgradeSouthern and Eastern Serbia
GRAPH 4
Belgrade Rents(EUR/sq m/month)
Source: Coreside RESEARCH
0
5
10
15
Stari
Grad
Dedinje New
Belgrade
Vracar Suburb
min max