Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Serbia

Serbia

In Serbia, the revenue of the Residential Real Estate Leases market market is forecasted to reach US$2.35bn in 2024.
Apartment Leases segment is expected to dominate the market, with a projected market volume of US$1.56bn in the same year.
The market is anticipated to grow at an annual growth rate (CAGR 2024-2028) of -3.24%, leading to a market volume of US$2.06bn by 2028.
The demand for residential real estate leases in Serbia is on the rise due to the country's growing population and increasing urbanization.

Key regions: France, United Kingdom, Australia, Japan, China

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Analyst Opinion

The Residential Real Estate Leases market in Serbia has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: In Serbia, there is a growing trend among individuals and families to opt for residential real estate leases rather than purchasing a property. This shift in customer preferences can be attributed to various reasons. Firstly, leasing provides greater flexibility for individuals who may need to relocate frequently due to work or personal reasons. Additionally, leasing allows individuals to avoid the financial burden of a large upfront payment associated with purchasing a property. Furthermore, the younger generation in Serbia, who are increasingly prioritizing experiences over ownership, are more inclined to opt for leasing as it offers them the freedom to explore different neighborhoods and lifestyles without the commitment of buying a property.

Trends in the market: One of the notable trends in the Residential Real Estate Leases market in Serbia is the increasing demand for urban apartments. As the country's cities continue to develop, more individuals and families are seeking to live in urban areas that offer a range of amenities, such as shopping centers, restaurants, and recreational facilities. This trend is particularly evident among young professionals and millennials who value convenience and a vibrant city lifestyle. As a result, there has been a surge in the construction of apartment buildings in urban areas to cater to this growing demand. Another trend in the market is the rise of co-living spaces. Co-living spaces, which are shared living arrangements where individuals rent a room within a larger property, have gained popularity in Serbia. This trend can be attributed to the rising cost of living and the desire for social connections among individuals. Co-living spaces offer a more affordable housing option and provide opportunities for residents to interact and build a sense of community.

Local special circumstances: One of the unique aspects of the Residential Real Estate Leases market in Serbia is the significant role played by the informal sector. It is estimated that a significant portion of the rental market operates outside of formal channels, with many individuals leasing properties without proper contracts or legal protections. This informal sector presents challenges in terms of regulation and monitoring, as well as potential risks for both landlords and tenants. However, efforts are being made to address this issue and increase the formalization of the rental market.

Underlying macroeconomic factors: The growth of the Residential Real Estate Leases market in Serbia is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable incomes and improved living standards. This has contributed to the growing demand for residential real estate leases as individuals have more financial capacity to afford rental properties. Additionally, low interest rates and limited availability of mortgage financing have made leasing a more attractive option for individuals who are unable to secure a mortgage loan. In conclusion, the Residential Real Estate Leases market in Serbia is experiencing growth due to changing customer preferences, including a preference for flexibility and urban living. The market is also influenced by the rise of co-living spaces and the significant role of the informal sector. Underlying macroeconomic factors, such as economic growth and limited mortgage financing, further contribute to the development of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.