Published on and written by Cyril Jarnias
Long overshadowed by Belgrade or Novi Sad, Čačak is gradually establishing itself as one of the most interesting real estate markets in Serbia for patient investors. Still affordable prices, a booming economic corridor, industrial explosion, major infrastructure projects, development of a science and technology park: everything indicates that this is no longer just a provincial town, but a future economic hub for central Serbia.
Čačak combines an advantageous cost of living with several growth dynamics: rapid industrialization, a position on a major highway corridor, the opening of an airport, an influx of foreign investment, and the development of technology and local tourism. This convergence creates an environment favorable for the gradual appreciation of real estate, whether for residence or rental.
Čačak, the New Industrial and Logistics Heart of Central Serbia
Within the Serbian landscape, Čačak occupies a strategic geographical position. Located in central Serbia, it is both the administrative, economic, medical, educational, and cultural center of the Moravica District, and also a pivot for a hinterland of nearly 16 million consumers. It lies within the Čačak–Kraljevo–Kragujevac corridor, identified as one of the fastest-growing regions outside Belgrade.
The Belgrade–Čačak–Požega corridor (Corridor XI) acts as a key driver, thanks to industrial expansion, improved highway connections, strong domestic demand, and the return of part of the diaspora. It symbolizes the shift from a Belgrade-centralized economy to a networked economy structured around major road axes, serving as both an industrial and tourist gateway.
The industrial zones of Preljina, Konjevići, and Cer play a central role in this transformation. The city equipped these zones with infrastructure as early as 2018, enabling the arrival of groups like Vorwerk (a 43,000 m² factory and over 1,000 jobs) or international players like PWO and Jiangsu Lianbo Precision Technology. These establishments don’t just create jobs: they structure a stable rental demand for skilled workers, engineers, managers, and subcontracting providers.
A Snowball Effect on Housing Demand
Over 79,000 people make up Čačak’s workforce, with profiles ranging from technicians to engineering graduates, notably thanks to the Faculty of Technical Sciences affiliated with the University of Kragujevac. The arrival of factories and industrial parks, combined with the “Čačak 2” Industrial Park project and the “Industrial Park 2030” program, mechanically creates an increase in housing demand near employment zones.
In the Serbian market, where housing supply is structurally lower than demand, secondary cities with industrial growth, like Čačak, are seeing their property prices rise. Although they currently remain below those of major cities like Belgrade or Novi Sad, Čačak’s industrial vitality suggests a gradual reduction in this price gap, sometimes with a slight time lag.
For an investor, it is precisely this differential that constitutes the opportunity: to buy before the market perception catches up with economic reality.
Major Infrastructure Projects: Highways, Bypasses, and Airport
In real estate, infrastructure is often the true conductor of value. Čačak is increasingly ticking boxes in this regard.
Highway Corridors and Regional Opening Up
The Preljina–Požega section of the E763 highway, nearly 31 km long, is now operational. It extends the famous “Miloš Veliki” (Surčin–Preljina) and is part of the Belgrade–Čačak–Bar axis. This segment includes three major tunnels (Trbušani, Laz, Munjino Brdo) and 35 bridges totaling over 5 km. The project is financed by a loan from the Export-Import Bank of China, amounting to 450 million euros, a sign that the Serbian state is heavily betting on this corridor.
In parallel, the Morava Corridor (E-761), designated as Serbia’s “first digital highway“, will connect Čačak to Kraljevo, Vrnjačka Banja, Trstenik, Kruševac, Varvarin, and Ćićevac over more than 112 km, serving over half a million inhabitants. This project, once completed, will further strengthen Čačak’s role as a hub for central Serbia.
This is the length, in kilometers, of the planned new northern bypass to facilitate avoiding the city center.
A Fine Urban Road Network
At the municipal level, Čačak’s budget for 2026 reaches 7 billion dinars and dedicates a significant portion to local road infrastructure: extension of Bulevar vojvode Putnika, development of Sinđelićeva Street, renovation of Kneza Miloša Street, construction of five new roundabouts (Ljubić, Konjevići industrial zone, Bulevar vojvode Putnika, Atenica, Beljina), improvements on Ljubić kej, and rehabilitation of secondary roads and tunnels (notably Vidovski).
These interventions have a dual real estate effect. On one hand, they improve the accessibility of peripheral neighborhoods, increasing their residential appeal. On the other hand, they help revalue areas that have been less well-served until now, notably the 3rd, 4th, and 5th tax zones which are already seeing upward adjustments to their property tax bases.
Morava Airport: An Airport as a Value Catalyst
One of the most structuring projects for Čačak is the conversion of the Lađevci military airport into the Morava civil-military airport. This project, integrated into the “Pillars of Čačak’s Development”, has been identified by a strategic committee composed of academics and economic experts as a direct lever for growth.
According to municipal studies, a local airport could increase local GDP by 2% annually, generating at least 2.6 million euros in additional net annual revenue for Čačak. Its operation is also expected to have other positive effects.
– increase the competitiveness of local businesses,
– strengthen the interest of foreign investors,
– increase the value of land and real estate,
– attract at least 150 foreign tourists weekly,
– generate approximately 5 million euros in annual revenue.
For an investor, such an air hub is not insignificant: it supports both the classic residential market (expatriates, engineers, managers on long-term assignments) and the development of short-term rentals like Airbnb.
A Real Estate Market Still Affordable but on the Move
At the national level, official data shows a Serbian market in a phase of normalization: after several years of double-digit increases, the pace is calming, with expected growth around 3 to 6% depending on scenarios, and little likelihood of a sharp price drop. Nationally, the average price for older apartments is around 1,856 €/m², new homes around 1,776 €/m², with considerable gaps between Belgrade and medium-sized cities.
Prime units in the capital often trade above 3,000 €/m², with peaks over 5,500 €/m² in projects like Belgrade Waterfront. In Čačak, data is more fragmented, but a set of indicators allows for gauging the order of magnitude.
Price Indicators and Local Taxation in Čačak
The city publishes annually a “Rešenje o prosečnim cenama kvadratnog metra nepokretnosti” (Decision on average real estate prices per square meter) which sets average values per square meter serving as the basis for calculating property tax. For 2025, in the best-equipped zone, the average prices used are for example:
| Property Type (Best-Equipped Zone) | Average Price (RSD/m², tax base) |
|---|---|
| Buildable Land | 1,623.00 |
| Agricultural Land | 307.00 |
| Forest | 70.00 |
| Other Land | 307.00 |
| Residential Houses | 58,469.69 |
| Commercial Buildings and Activity Buildings | 138,476.41 |
Even though these amounts do not correspond to strict market prices (but to average fiscal values), they allow for comparing categories and perceiving the gap between residential and commercial.
The territory of Čačak is divided into five tax zones, defined according to the level of infrastructure (networks, transport, services). Recent decisions show that property values are evolving faster in peripheral zones than in the hyper-center.
| Property Type / Zone | Evolution of Tax Base (2026 tax) |
|---|---|
| Apartments – 1st zone | +1% |
| Apartments – 3rd and 4th | +11% |
| Apartments – 5th | +9% |
| Houses – 1st zone | 0% (unchanged) |
| Houses – 3rd zone | +20% |
| Houses – 4th zone | +11% |
| Houses – 5th zone | +9% |
In short: the municipality observes that transactions and prices are rising more sharply in the 3rd, 4th, and 5th zones than in the “prime” center. This is typical of an expanding city: central prices have already experienced a first wave of increase, but the peripheral neighborhoods, better connected by new boulevards and the bypass, are beginning to catch up.
For an investor, it is useful to know that the margin for progression is likely greater in peripheral sectors (like Preljina, Ljubić, Prijevor, or areas near the future northern bypass and new roundabouts) benefiting from good infrastructure projects, than in the micro-center which is already fully valued.
Examples of Price Levels
Available listings illustrate the still affordable nature of the market. For instance, a house located in Dragise Misovica, in the central zone (“Centar”), was listed at 46,000 € for 85 m², or 541 €/m², with a 460 m² plot and commercial premises in the courtyard, before the listing expired. Another property in Jezdina, with a 33,600 m² plot, was offered at 44,000 €.
These levels remain well below those of major Serbian cities and even many cities of comparable size, suggesting potential for catch-up, especially as wages rise and the Čačak–Kraljevo–Kragujevac corridor attracts new businesses.
The Short-Term Rental Market in Čačak: A Niche Segment in Development
The seasonal Airbnb rental market in Čačak remains a niche, with only 35 active listings recorded between August 2024 and July 2025 according to AirROI/Airbtics data. However, this segment already offers an interesting reading for those targeting a flexible rental investment (long-term / short-term mix).
Composition of the Airbnb Market
The short-term rental stock in Čačak is surprisingly homogeneous:
– 100% of listings are for entire homes,
– approximately 94.3% are apartments or condos,
– 57.1% are one-bedroom units,
– properties with one or two bedrooms represent 80% of listings,
– the average capacity is 3.5 people, with a capacity of 4 people being the most frequent (37.1% of homes).
Tourist and business demand focuses mainly on compact spaces (studios and 1/2-bedroom units), in line with the national trend where small homes generate the best returns per m².
Rental Real Estate Market Analysis
Rental Performance: Revenue, Occupancy Rate, Nightly Price
Available figures show a market where seasonality exists, but remains less extreme than in major mountain or seaside tourist destinations:
| Indicator | Median / General Trend in Čačak |
|---|---|
| Median Monthly Revenue | ~$254 |
| Low Revenue (Bottom 25%) | ~$144 |
| Top 25% | ≥ $412 / month |
| Top 10% | ≥ $575 / month |
| Peak Revenue (Strongest Month) | ~$462 |
| Trough Revenue (Weakest Month) | ~$143 |
Occupancy follows the same pattern:
| Indicator | Approximate Value |
|---|---|
| Median Occupancy Rate | ~20% |
| Bottom 25% | ~12% |
| Top 25% | ≥ 33% |
| Top 10% | ≥ 49% |
| Seasonal Peak | ~35.6% |
| Seasonal Trough | ~12.7% |
Finally, nightly prices remain moderate:
| Indicator | Value in $ |
|---|---|
| Median Average Daily Rate (ADR) | ~$37 |
| Lower Quartile | ~$33 |
| Top 25% | ≥ $45 |
| Top 10% | ≥ $59 |
| Seasonal Peak | ~$45 |
| Cheapest Month | ~$40 |
Seasonality is marked: the best months (May, June, August) show average revenues of about $438 with an occupancy rate close to 32% and an ADR around $45. In the low season (September, November, December), average revenues drop to around $179, with 17% occupancy.
This is far from the spectacular yields of Belgrade or some highly touristic resorts, but the figures confirm that well-positioned operators can achieve respectable profitability in a lightly regulated environment.
City Center: The Focal Point for Short-Term Rentals
The city center constitutes the nerve center for an Airbnb investment in Čačak. This is where the following are concentrated:
Explore the city’s multiple facets, from its historical heritage to its vibrant daily life.
Discover shops, cafes, and restaurants to experience the city’s atmosphere and flavors.
Visit the Čačak Fortress, the Rača Museum, the Church of Saint Zachariah, and enjoy the City Park.
Browse shopping malls and local markets for your shopping and regional products.
This fabric attracts both business travelers (linked to nearby industrial zones and technology parks) and passing tourists who combine cultural visits with trips to the Ovčar-Kablar Gorge or nearby spa towns.
The very limited supply (35 homes for a dynamic urban area) means there is still significant room for new entrants, provided the product is well-calibrated (small modern spaces, good finishes, services adapted for remote work and short business stays).
A Favorable Business Environment: “Business-Friendly” City and Proactive Policy
Čačak has obtained the international BFC SEE (Business Friendly Certification in South East Europe) certification, which recognizes cities offering an attractive framework for businesses. Over 60 million euros in investments have been attracted in three years, a sign that territorial marketing is working.
The municipality distinguishes itself in Serbia through: the importance of its cultural and educational institutions, as well as its ethnic and historical diversity which enriches its heritage.
– a formally adopted economic development program,
– strong cooperation with economic actors (Economic Council, Strategic Affairs Committee),
– a specific budget for active employment measures (40 million dinars in a reference year, plus 10 million for the development program),
– massive support for industrial zones (gas pipelines, electrical substations, service roads, fiber optics).
Number of innovations filed by companies in the Niš Science and Technology Park.
| Science & Technology Park Čačak | Key Data |
|---|---|
| Existing Area | ~5,733 m² |
| Current Number of Companies | > 40 (over 30 in some documents) |
| Current Jobs | > 140 |
| New Area (phase 2) | ~12,700 m² |
| Total Investment | 20.2 M€ |
| State Funding for Čačak | 17 M€ |
| Capacity for New Users | ~50 companies, 200–300 experts |
In the long term, Čačak will have a technology park of comparable size to those in Niš and Kruševac, forming a technology triangle with these cities. This move upmarket towards high value-added activities (IT, R&D, advanced manufacturing) strengthens the appeal for a young, educated population, often renting in their early years, generating stable demand for well-located and well-connected apartments.
Legal Framework for Foreign Investors: An Open but Regulated Market
For an international investor, one of Serbia’s assets is the relative openness of its real estate market to non-residents, within a now fairly standardized legal framework.
Property Rights and Restrictions
Foreigners can buy in their own name:
– apartments,
– houses (with the land they stand on),
– commercial premises (offices, shops, warehouses, mixed-use buildings),
provided there is a principle of reciprocity between Serbia and the buyer’s country of origin (formal or de facto). For most Western countries (EU, UK, USA, Canada, Australia), this condition is met.
However, some assets remain prohibited for direct purchase by foreign individuals:
– agricultural land,
– vacant land without construction,
– forests,
– properties in sensitive military zones.
To circumvent restrictions on acquiring agricultural or vacant land in Serbia, a common solution is to create a limited liability company (DOO). This entity, even if entirely owned by a foreigner, is considered a local legal entity and can legally own such properties. This structure is particularly relevant for development projects, for example in areas like the surroundings of Čačak where available land is still significant.
Purchase Process and Timelines
The acquisition process is relatively clear, with an average duration of 30 to 60 days between the acceptance of the offer and the effective registration at the Cadaster:
The acquisition of real estate in Croatia follows a structured procedure. It begins with property search and selection, often facilitated by a licensed real estate agency. Then, legal due diligence is imperative, conducted by a lawyer to verify the title deed, permits, and potential disputes. A preliminary contract (predugovor) may be signed, accompanied by a deposit. The final sales deed is then signed before a notary, a mandatory step. This is followed by full payment of the price and settlement of taxes. Finally, the notary registers the deed in the cadaster within 24 hours, a process that generally takes between 5 and 15 working days.
Everything can be done remotely via an apostilled and translated Power of Attorney in Serbian.
Additional Costs and Transaction Taxation
In practice, one must anticipate additional costs on the order of 7.6 to 10% of the property price, including:
– lawyer fees: 1 to 3%,
– notary fees: 0.1 to 0.5% (often a flat fee of 300–500 €),
– agency commission: on average 2%, often charged to the buyer,
– transfer tax (older properties): 2.5%,
– VAT (new properties): 10%, in lieu of the transfer tax,
– cadaster registration fees: about 50 €.
The annual property tax, meanwhile, remains moderate, with a progressive rate starting at 0.4% of the cadastral value up to 10 million dinars, then increasing in steps.
Rental Yields: Where Does Čačak Stand in the Serbian Landscape?
National data gives an average estimate of gross rental yield around 5.3% for Serbia, with a realistic range of 4.3 to 6.8%. Once expenses and taxation (notably income tax on rental income of about 15% of gross for individuals) are factored in, the net yield is rather around 3.7% on average.
Studios and small units of 25 to 45 m² show the best yields, with a bonus of 0.5 to 1.5 percentage points compared to large apartments. In “average” Belgrade neighborhoods, one easily reaches 6% gross, while prime areas are more compressed around 4%.
For Čačak, the absence of detailed official statistical series requires reasoning by analogy:
Prices are below the national average and well below Belgrade. Rental demand is supported by industrial zones, the technology park, a future hospital, and infrastructure. The short-term rental market remains underdeveloped, with only 35 active listings.
In this context, an investor who buys a small apartment in a good location (center, proximity to major axes, near the Faculty of Technical Sciences or the future hospital) has a good chance of aiming for a real gross yield in the upper part of the national range, especially if combining classic annual rental with short-term periods during high season or specific events (conferences, sports competitions, industrial visits, mountain and spa tourism).
Segments and Locations to Watch in Čačak
Even without an exhaustive list of neighborhoods, the available documents allow identifying some particularly interesting axes and zones.
City Center and Adjacent Areas
The center remains the historical anchor point:
– high density of services,
– cultural and religious heritage,
– easy access to facilities (health, education, administration),
– major asset for short-term rentals and for young professionals.
Structural streets like Dragise Misovica illustrate an still attractive price level for an urban center, with renovation potential (older buildings offering large spaces). The development of the Start-up Center in the Cultural Center building (621 m² allocated) adds a “tech” layer right in the heart of the city.
Industrial Zones and Employment Hubs
The zones of Preljina, Konjevići, and Cer, as well as the future Industrial Park Čačak 2, concentrate industrial and logistics projects. Buying in residential neighborhoods connected to these zones (with good road network and public transport service) allows targeting a stable clientele: factory employees, engineers, managers staying several months or years.
With zone expansion projects, new urban plans, and connections to gas, electricity, and fiber networks, the attractiveness of these sectors is set to increase progressively over the decade.
Neighborhoods Boosted by New Infrastructure
Several projects are changing the game for certain neighborhoods:
Projects to improve roads and mobility in several localities, including the creation of roundabouts, new axes, and bridges.
Creation of roundabouts, new axes (Njegoševa), and bridges. Improved access to the future Ljubić health station and installation of stormwater collectors.
Integrated into the northern bypass route and connected by a new bridge over the Zapadna Morava River.
Benefit from roundabouts and road projects to improve traffic flow and quality of life.
Nearby rural municipalities (Vranići, Milićevci, Sokolići, Gornja Gorevnica, Botunja, Karača, Viljuša, Prijevor, Preljina) are subject to work on water and sanitation networks. As infrastructure strengthens, these localities gain residential potential, notably for profiles seeking houses with gardens close to a strong employment basin.
Ecological Transition and Quality of Life: An Often Underestimated Angle
Real estate value depends not only on the economy and infrastructure, but also on quality of life and the environment. On this front, Čačak is tackling a crucial project: water and waste management.
A wastewater treatment plant (Wastewater Treatment Plant) project is underway, supported by Sweden (750,000 € for documentation preparation via the PEID project), the European Union, and the Serbian government. The goal: stop the discharge of 250 liters of wastewater per second into the Zapadna Morava. The project is part of a broader program covering 17 cities and municipalities, with the following key outcomes:
Main advantages resulting from renaturation and improvement work on a watercourse.
A clear improvement in water quality thanks to natural filtration and reduced pollutants.
A reduction in health risks linked to pollution and flooding.
Increased value of riverbanks for residential, leisure, or tourist projects.
In parallel, Čačak is integrated into a waste sorting program which plans the delivery of 15,000 bins, about 600 containers, and three collection vehicles. The city is expected to become the first in Serbia to completely eliminate non-compliant landfills.
In the medium term, this type of initiative strengthens residential and touristic appeal: families, retirees, international executives are increasingly sensitive to the environmental quality of their living place. For the investor, this translates into better property liquidity and, often, a price premium in the best-managed sectors.
How to Approach a Real Estate Investment in Čačak Concretely?
Getting started in Čačak requires articulating several dimensions: macro (corridors, industry, airport), micro (tax zones, neighborhood infrastructure), legal (foreigner status, taxation), and product (property type, size, rental strategy).
Some practical lines of thought:
1. Target the right property types: Serbian data confirms that small units – studios, 1-bedroom, 2-bedroom units of 25 to 45 m² – offer the best gross yields, whether for classic or short-term rental. In Čačak, where Airbnbs are still few and mostly small apartments, this segment remains a priority.
For a rental investment in Čačak, prioritize properties located in well-connected sectors. Target the city center for its proximity to services and the faculty, the axes serving the Preljina, Konjevići, and Cer industrial zones, as well as sectors near the new boulevards or roundabouts. The arrival of Morava Airport and the development of the highway network significantly increase the value of areas well connected to interchanges.
3. Take fiscal signals into account: the stronger increases in the tax base in the 3rd, 4th, and 5th zones are an indicator that the market is awakening in these sectors. It can be wise to position oneself while prices remain low, targeting neighborhoods where road and network projects are already budgeted.
For a foreigner, it is crucial to verify reciprocity of acquisition rights, use a local lawyer, and prioritize properties with proper building and use permits. One must anticipate an overall transaction cost of about 8 to 10% of the purchase price. For acquiring land or agricultural land, creating a local company (DOO) is an option to consider.
5. Choose the right rental strategy: in the short term, a long-term rental targeting employees of industrial zones, teachers, engineers, or doctors offers a stable income base. Short-term rental via Airbnb is currently a possible complement in the city center, but should gain importance with the development of the airport, mountain and spa tourism, and event activity (conferences, trade shows).
Conclusion: Čačak, a Second-Tier City with First-Class Potential
Čačak does not play in the same league as Belgrade in terms of price, volume, or international visibility. But this is precisely what makes it an interesting opportunity for an investor who knows how to read the weak signals: sustained industrial growth, major highway and airport projects, massive development of a science and technology park, notable improvement of networks and the environment, positioning at the heart of a corridor announced as one of the country’s most dynamic.
In a Serbian market undergoing normalization with moderate price growth, industrial and well-connected cities like Čačak, still affordable, offer the best yield/potential for medium- and long-term capital gain compromise. They represent a thoughtful diversification option in Southeast Europe, rather than mere peripheral speculation.
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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.
