Based on assessments from the official authorities, the construction sector started to recover (growing by 1.8% y-o-y) on the back of recent improvements in issuing construction permits and lower financing costs as interest rates fell in 2017.

The demand for residential units in Belgrade remained strong, having in mind that the number of sold apartments significantly exceeds the number of completed units for several years in a row which has triggered the increase in sales prices. In 2017, more than 14,000 residential units were sold with largest share recorded in Zvezdara municipality (20%). According to the Republic Geodetic Agency statistics, more than 4,500
residential units were sold in Belgrade in the first 4 moths of 2018, with the largest number of units being sold in Zvezdara municipality, followed by Zemun, Vozdovac and Palilula municipalities. The strong development of Belgrade residential market continued in 2018, whereas most Belgrade’s key municipalities are experiencing intensive development.