High-risk market hinders investment in Serbia

BELGRADE - The insufficiently developed infrastructure and inadequate laws, as well as lack of liquidity and non-transparent market, prevent a more significant inflow of foreign investment to Serbia, said the participants of the international conference on South East European property market “SEE Property Business Forum”.

One of the most prospective markets in the region offers strong investment opportunities for potential investors, but due to widespread corruption and inadequate laws, they come with a high risk, the Hungarian Portfolio Conferences and the Royal Institution of Chartered Surveyors (RICS) noted in the report from the conference held recently in Belgrade.

Around 150 leading SEE real estate professionals gathered at the conference pointed out that investors show particular interest in the region of Belgrade, where modern office space and retail facilities are in high demand.

The number of offices and retail facilities per capita is significantly lower compared to other Central and East European countries so it is no surprise that the office space rental prices in Serbia are the highest in the region, Portfolio Conferences and RICS noted in a joint statement.

This is an excellent starting point for investors willing to come to Serbia, but deficiencies in the regulatory system prevent them. The obstacles they face during the project preparation and planning pose the biggest problem, along with the unpredictable market, the statement reads.

Nikola Senesi of RICS pointed out that institutional investors are more interested in short-term, low-risk investments, which is completely opposite to the current situation in Serbia.

For that reason, the local market is more attractive to...