Published on and written by Cyril Jarnias
The Serbian real estate market is undergoing significant transformation. After the price surge of 2021‑2022, the rate of increase has moderated, but the momentum remains positive: apartment prices still rose by approximately 5% in 2024, and experts anticipate moderate annual growth of 3 to 7% until the end of the decade. In this context, choosing the right neighborhoods becomes crucial for achieving a good rental yield or solid capital appreciation.
The Serbian real estate market is now structuring itself around major transportation corridors, industrial cities, and major urban projects like Belgrade Waterfront and EXPO 2027. Belgrade remains the dominant market, but cities like Novi Sad, Niš, and Kragujevac are rapidly gaining importance.
This article provides an overview of the best neighborhoods and areas to invest in Serbia, based on the most recent data available in the research report.
Why Serbia Attracts Real Estate Investors
Serbia offers a rare combination in Europe: still affordable prices, a growing economy, a major infrastructure push, and the prospect of European Union membership. GDP grew by about 12% between 2020 and 2023, annual growth is expected around 3.5 to 4% in 2025, and cumulative foreign direct investment amounts to nearly 16 billion euros in recent years. At the same time, the country obtained an “investment grade” rating from S&P (BBB‑), which reinforces the perception of stability.
On the real estate front, the total transaction volume reached 7.4 billion euros in 2024, up 15% year‑on‑year, of which 4.1 billion was for housing. Prices are rising, but without an apparent bubble: in 2024, the average increase for apartments was around 5%, with significant regional disparities.
This is the amount, in billions of euros, allocated by the ‘Leap into the Future – Serbia EXPO 2027’ program to finance infrastructure, housing, and public facilities.
Finally, Serbia remains significantly cheaper than most Central European capitals: in Belgrade, the average price was around €2,990/m² in mid‑2025, still below Zagreb and significantly above Sarajevo, but with rents and yields considered more attractive. In other major cities, prices remain well below Belgrade’s threshold.
Belgrade, Market Heart and Laboratory for New Neighborhoods
Belgrade captures over half of the transaction value for apartments in Serbia and over 70% of the interest for the luxury segment. The capital is simultaneously the largest market, the most expensive, and the one hosting the most ambitious projects.
In 2025, the average price there reached €2,990/m², with an annual increase of 9.4%. But this overall figure masks a multi‑speed market, where some central neighborhoods exceed €4,000/m², while peripheral areas remain around €1,800–2,000/m².
The Belgrade Waterfront Project: Premium Showcase on the Sava
The Belgrade Waterfront project, on 90 to 170 hectares along the Sava River, embodies Belgrade’s new image. It is a vast partnership between the Serbian state and developer Eagle Hills (United Arab Emirates), with a total investment estimated at $3.5 billion. The goal: to create up to 1.85 to 2 million m² of apartments and offices, eight hotels (2,200 rooms), and about 250,000 m² of commercial space, centered around the Kula Beograd skyscraper (168 m) and the Galerija Belgrade shopping mall, the largest in the Balkans (300,000 m², over 500 stores).
In practice, Belgrade Waterfront is already one of the most sought‑after locations in the country. By mid‑2023, over 6,000 apartments had been sold there, 14 buildings delivered, and over 3,000 units already occupied. Prices have soared: in the BW Vista and BW Parkview towers, the square meter price rose from €2,200–2,600 at launch to approximately €3,700–4,100 in later phases. In the third quarter of 2023, 182 more apartments were sold, ranging from €3,433 to €9,475/m², with an average of €4,390/m².
Gross rental yields there are among the highest in Belgrade for the luxury segment, between 5% and 7% annually. In 2024, a 2‑bedroom apartment typically rented for €1,200–1,500 per month, a 3‑bedroom for around €1,800–2,500, and penthouses easily exceeded €4,000 monthly. According to provided calculations, a typical investment would be amortized over about thirteen years through rent, which remains remarkable for such a high‑end product.
The neighborhood benefits from a strategic location, immediately adjacent to the E‑75 highway, the Gazela and New Sava Bridges, and 20 minutes from Nikola Tesla Airport. Its appeal is further enhanced by a future metro line, the Sava Promenada walkway, and Sava Park and Linear Park.
Simplified summary table for Belgrade Waterfront:
| Indicator | Indicative Value |
|---|---|
| Total project investment | $3.5 billion |
| Planned built‑up area | 1.85–2 million m² residential + offices |
| Average price Q3 2023 | €4,390/m² |
| Price range Q3 2023 | €3,433–9,475/m² |
| Estimated gross rental yield | 5–7% |
| 2‑bedroom rent (2024) | €1,200–1,500/month |
| 3‑bedroom rent (2024) | €1,800–2,500/month |
| Estimated amortization period | ≈ 13 years |
For an investor, Belgrade Waterfront clearly targets an audience ready to bet on the high‑end segment, aiming for both high liquidity, a solid yield, and the relative security of an iconic project, supported by the state and already commercially proven.
Savski Venac, Stari Grad, Vračar: The Capital’s Premium Triangle
Surrounding Belgrade Waterfront are several highly sought‑after municipalities that continue to appreciate. First‑quarter 2025 data shows that Savski Venac, Stari Grad, and Vračar form a veritable golden triangle.
Savski Venac, home to Belgrade Waterfront and prestigious residential neighborhoods like Dedinje or Lisičji Potok, showed an average price of €4,369/m² in early 2025, up 8% year‑on‑year. New construction there averages €4,361/m². Stari Grad, the historic city center, is not far behind, at €4,260/m² with an 8.1% increase. Vračar, known for its upscale buildings and vibrant cultural life, is around €4,103/m².
The most expensive sub‑districts of Savski Venac, according to recent data, illustrate this market tension well:
| Sub‑zone (Savski Venac) | Average Price €/m² (approx.) |
|---|---|
| Belgrade Waterfront | 4,215 |
| Dedinje | 3,634 |
| Lisičji Potok | 3,399 |
| Savamala | 3,514 |
| Klinički centar | 3,795 |
| Kneza Miloša | 3,467 |
Demand is driven by local professionals, multinational company employees, diplomats, and a significant portion of the Serbian diaspora. Scarcity of land, renovated pre‑war buildings, and a dense cultural offering ensure particular resilience in case of a slowdown.
For the investor, these districts have two major characteristics: a high entry price and high liquidity. The square meter price is expensive, but apartments sell or rent quickly, especially for medium‑ and long‑term furnished rentals.
New Belgrade: The Business Hub That Continues to Attract
On the other side of the Sava, New Belgrade (Novi Beograd) exemplifies revisited Yugoslav urbanism: large blocks, wide avenues, and modern towers. It concentrates most of the capital’s office stock, with stock nearing one million square meters, very low vacancy (about 2–4% for grade A), and prime rents around €18/m² per month.
In the New Belgrade residential market, prices rose by approximately 8% year‑on‑year in early 2025, reaching an average of €2,658/m². New developments traded around €3,200/m². Blocks 11 to 45 are particularly identified as the most attractive zones for a mixed investment, combining offices and housing.
Some approximate figures by block:
| Area (New Belgrade) | Average Price €/m² (approx.) |
|---|---|
| Block 21 | 3,200 |
| Block 22 | 3,400 |
| Block 45 | 2,500 |
| Block 70 | 2,800 |
| Ušće | 3,000 |
New Belgrade is driven by the presence of headquarters of large companies, IT firms, shared service centers, as well as shopping malls and hotels. The practical aspect (parking, road access, trams, buses) appeals to young families and expatriates who prefer a functional setting to the eclectic architecture of the historic center.
For a rental investor, New Belgrade generally offers decent yields, slightly lower than in peripheral neighborhoods but with very low vacancy risk, especially for well‑positioned units near office hubs.
Palilula, Karaburma, Zvezdara, Voždovac: The New Winners of Gentrification
With central prices pushing some demand towards the second ring, several municipalities are rapidly upgrading.
Palilula is the most striking example. This vast municipality, long perceived as more working‑class, saw its average price jump from €1,960/m² to €2,600/m² in one year, a spectacular growth of 32.7%. Central areas there already exceed €3,000/m². The reasons: new developments, infrastructure projects (a small “mini‑metro” type tunnel, road network improvements), and strong demand for housing more affordable than in Stari Grad or Savski Venac.
The estimated average price per square meter in Karaburma in 2025, illustrating the dynamics of this micro real estate market.
Zvezdara, on the other hand, attracts with a combination of still reasonable prices and proximity to the center. Average values were around €2,045/m² in 2024, with sub‑districts like Mirijevo highlighted for their competitively priced new projects (about €2,000/m²). The launch of the future Makiš‑Mirijevo metro line should further strengthen this sector’s potential.
Finally, Voždovac exemplifies the rapidly densifying residential belt. Well‑connected, with a mix of multi‑family housing and houses, it showed a price around €2,500/m² in early 2025, up about 5%. The urban‑suburban balance, accessibility by public transport, and proximity to employment zones make it a safe bet for renting to families and young professionals.
Zemun, Čukarica, Rakovica: Rising Values on the Periphery
On the periphery, some municipalities still combine moderate prices with good growth prospects. Zemun, on the banks of the Danube, offers a more “village‑like” alternative to Belgrade, with an average around €2,067/m² (range €1,341–4,125/m² depending on the street). There is sustained rental demand, fueled by those seeking a compromise between peace, architectural authenticity, and proximity to the capital.
Čukarica, to the west, benefits from new residential projects and improved road axes. New construction there was around €2,534/m² in 2024, compared to €1,909/m² for older buildings. Rakovica remains Belgrade’s most affordable municipality with an average price of €1,838/m², while also being among the most in‑demand zones in 2024.
For an investor looking to optimize the purchase price/yield ratio, these sectors can generate yields higher than in the center, with relatively high rents relative to the acquisition cost.
Novi Sad: Second City, Primary Growth Relay
Novi Sad, the capital of Vojvodina province, represents the country’s second real estate market. The city benefits from a very attractive profile: a major university (over 50,000 students), a growing tech ecosystem, the EXIT festival attracting over 200,000 visitors, a high‑speed rail link with Belgrade, and proximity to the Fruška Gora hills, which have become a genuine residential and tourist “belt.”
In mid‑2025, the average apartment price was around €2,483/m², with an annual increase of 4.7%. Third‑quarter 2024 data even shows a rise of 17.4% for new developments (€1,960/m²) and 8.7% for older ones (€2,000/m²). Demand is therefore strong, especially for modern, well‑located, and energy‑efficient housing.
The key neighborhoods of Novi Sad for investment are:
Overview of the main neighborhoods in Novi Sad, with their characteristics and real estate market trends.
Authentic charm, proximity to the Danube and Petrovaradin Fortress. Prices can reach €3,000–4,000/m² in new developments.
Riverside area appreciated for its green setting and excellent accessibility.
A rapidly expanding neighborhood, with significant new construction development.
Highly sought‑after central location and dynamic rental market (students). Slight correction in 2024, 3 to 7% increase anticipated by 2025.
Veternik, Salajka, Sajlovo: more affordable (€1,500–1,600/m²) while remaining well‑connected to the center.
Simplified table of price ranges in Novi Sad (new and old combined):
| Area of Novi Sad | Indicative Price Level €/m² |
|---|---|
| Stari Grad (center) | 3,000–4,000 |
| Liman / Grbavica | ≈ 2,000–2,500 |
| Telep | ≈ 1,800–2,200 |
| Periphery (Veternik, etc.) | 1,500–1,600 |
Rental yields are around 3.5–3.8% gross according to available data, slightly lower than Belgrade but with solid fundamentals: significant student population, IT companies, rising tourist appeal. For medium‑term investors, Novi Sad appears as a natural growth relay, particularly along axes towards Sremska Kamenica or along the Danube.
Niš: The Rising Star of the South, with High‑Potential Neighborhoods
Niš, the country’s third‑largest city, combines several assets for investment: a strategic position on Corridor X (Belgrade–Sofia/Thessaloniki axis), a developing international airport, a strong university presence, and the rise of electronics and IT (local science and technology park).
The market remains more affordable than in the two major metropolises. In the second half of 2024, new builds sold for an average of €1,774/m², while national statistics indicated an overall average of about €1,661/m² in mid‑2025, with annual growth of 6.73% – the strongest in the country. In detail, new developments saw their prices climb 21.4% year‑on‑year (€1,700/m² in Q3 2024), older ones by 9% (€1,320/m²).
The neighborhoods to consider in Niš are distinguished by their specific profiles. To make the right choice, it is essential to analyze their individual characteristics based on your needs (proximity to the center, atmosphere, amenities, etc.).
– Mediana (Medijana): central municipality, better equipped, close to schools and offices. New apartments there exceed €2,000/m² and rental demand is strong, particularly from the middle class and young professionals;
– Palilula (Niš): lively neighborhood, very popular with students due to its proximity to cafes, transport, and faculties;
– Durlan and Pantelej: calmer residential sectors, with many houses and more green spaces; supply increased there in 2024, attracting families;
– Trošarina: still affordable area, but under rapid development;
– Niška Banja: spa town about ten kilometers away, targeted by seniors, wellness tourism, and secondary residences.
Local agencies report gross yields of 5 to 7%, with higher peaks for furnished studios near the university. For instance, a studio of about 30 m² purchased for €45,000 can rent for €250/month to students, generating an annual gross yield over 6%. Similarly, a new 2‑bedroom in Mediana bought for €85,000 can target young couples or professionals, in a market where rents are still rising.
For an attentive investor, Niš presents two major advantages: strong potential for rent and price growth (the market saw a more than 40% increase in volume and nearly 100% increase in transaction value in 2024) and an entry point still much lower than Belgrade or Novi Sad.
Kragujevac, Subotica, Čačak: Secondary Cities to Watch
One of the major evolutions of the Serbian market is the rise of regional cities, especially along major highway and railway corridors.
The average price per square meter for new real estate in Serbia in the third quarter of 2024, in euros.
Subotica, in the north near Hungary, benefits from its role as a cross‑border hub. Prices there were around €1,304/m² in mid‑2025, with growth of about 4.3%. The dynamism of trade with Hungary, the growth of SMEs, and urban projects are gradually improving prospects for appreciation. Rental yields there are often considered high, precisely because the entry point remains modest.
The city benefits from the development of the Čačak‑Kraljevo‑Kragujevac corridor and the establishment of major industrial players like PWO and Jiangsu Lianbo Precision Technology. This dynamic creates new jobs and housing demand. Residential property prices, still well below those in major cities, present an opportunity for long‑term investors.
Simplified comparative table of some secondary cities:
| City | Average Price €/m² (approx. 2025) | Recent Dynamic |
|---|---|---|
| Kragujevac | 1,478 | +5.2% annual, auto boom |
| Subotica | 1,304 | +4.3%, high rental yield |
| Niš | 1,661 | +6.7%, tech & logistics |
| Novi Sad | 2,483 | +4.7%, IT & student hub |
These markets are particularly interesting for investors looking for a catch‑up effect: they start from a lower price level, but benefit from an accelerating economic environment (new skilled jobs, infrastructure, universities) and a housing supply still limited relative to demand.
Resorts, Mountains, and Spas: Another Way to Invest in Serbia
Beyond the major urban areas, Serbia offers a second universe for investment: mountain resorts, spa towns, and Danube riverfronts.
The average price per square meter in Kopaonik in 2023, close to that of central Belgrade neighborhoods.
Spa resorts like Vrnjačka Banja, Sokobanja, Prolom or Lukovska Banja are also gaining momentum, driven by the rise of wellness tourism and public policies favoring this segment. Prices there remain lower than in the “star” mountain resorts, but the prospects for value increase and occupancy rates are real.
Finally, cities along the Danube – Belgrade, Novi Sad, Smederevo, Sremska Mitrovica – are part of a vast riverbank redevelopment project: modernized river ports, promenades, marinas, hotels, and tourist residences. In the long term, these developments should sustainably support the price of land and riverside housing.
Cross‑Cutting Trends: Yield, Credit, Regulation
To choose the best neighborhoods to invest in Serbia, one must also integrate the major cross‑cutting trends affecting the market.
In terms of yields, estimates point to an average level of 5% gross for residential, with peaks around 7% in certain areas (Belgrade and Novi Sad suburbs, regional cities like Niš or Kragujevac, or very seasonal tourist segments). Compact apartments (45–67 m², 2‑3 bedrooms) in new, well‑located, and energy‑efficient buildings are those that appreciate best and rent fastest.
Only about a quarter of apartment purchases in Serbia in 2024 were made using a mortgage.
On the regulatory front, the environment is described as relatively simple compared to other European countries: 2.5% transfer tax for existing properties, 10% VAT for new residential, moderate property tax (maximum 0.4% for housing), and the possibility for foreigners to purchase housing benefiting from the reciprocity principle. Agricultural land ownership, however, remains more regulated.
Demand for low‑consumption housing is expected to increase by 30% by 2025, driven by the tightening of European standards.
How to Choose Between Different Neighborhoods and Cities
Faced with this mosaic of options, the central question remains: where to invest first? The answer obviously depends on each investor’s profile and objectives, but the data allows for some broad guidelines.
For maximum security, with high liquidity and structural rental demand, Belgrade’s central neighborhoods – Savski Venac (including Belgrade Waterfront), Stari Grad, Vračar – remain essential. The entry ticket is high, but the buyer benefits from a regional capital, a chronic shortage of well‑located housing, and a constant influx of young professionals, expatriates, and tourists.
Near‑central neighborhoods like Palilula (Karaburma), Zvezdara (Mirijevo), Voždovac, and Zemun offer a good compromise between purchase price and capital appreciation potential. Their infrastructure is improving rapidly, price growth there is above average, and rental demand from families remains solid.
For a geographic diversification and medium‑term strategy, Novi Sad and Niš constitute two pillars: the first as a technological and university hub in the north, the second as the capital of the south, at the crossroads of a major logistics corridor. In both cities, prices remain significantly lower than Belgrade but recent increases have been significant, especially in Niš.
Tourism revenue in Serbia reached a record 1.6 billion euros in 2024.
Underlying all this, one point emerges from the data: the Serbian market is transitioning from a capital‑centric model to a network of corridors and secondary hubs connected by heavy infrastructure (highways, high‑speed lines, river ports, airports). By 2035, the map of the “best neighborhoods to invest in Serbia” might therefore give more space to intermediate cities than just to Belgrade’s districts. But to date, the capital remains, by far, the main engine, and the neighborhoods it is reshaping – especially along the Sava and Danube banks – constitute the laboratory where the future of Serbian real estate is being drawn.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
