Real Estate - Eurobank Property Services

June
Real Estate
2009
Market Report
S
Highlights
E
R
B
I
A
Serbia: Macroeconomic Indicators
2008 (est)
2009 (prog)
GDP growth rate (%)
5.4
-2.0
CPI (end period) (%)
8.6
10.0
Domestic demand (%)
5.9
-5.6
-17.1
-13
12.4
3.2
Export volume (% GDP)
9.8
-10.9
Import volume (% GDP)
9.2
-15.8
POLAND
UKRAINE
ROMANIA
Current account balance (% GDP)
SERBIA
BULGARIA
GREECE
Capital & financial account (% GDP)
Sources: Serbian authorities, IMF staff estimates & projections
Disclaimer
The present advertising brochure
«Real Estate Market Report» has been issued by
EFG Property Services d.o.o. Beograd.
Editor in charge:
LADISLAV TOMASEVIC
Research Group:
ROBERT MILKOV
MILENA BESLAC
Date
June 30, 2009
This report has been issued for advertising purposes by EFG Property Services d.o.o. Beograd, a member of the EFG Group,
and may not be reproduced in any manner or provided to any other person. Each person that receives a copy by acceptance
thereof represents and agrees that it will not distribute or provide it to any other person. This report is not an offer to buy
or sell or a solicitation of an offer to buy or sell the real estate mentioned herein. EFG Property Services d.o.o. Beograd and
others associated with it may have positions in, and may effect transactions in the real estate mentioned herein, and may also
provide or seek to provide services (investment banking, brokerage or other) for those companies. The investments discussed
in this report may be unsuitable for investors, depending on the specific investment objectives and financial situation. The
information contained herein has been obtained from sources believed to be reliable but it has not been verified by EFG
Property Services d.o.o. Beograd. The opinions expressed herein may not necessarily coincide with those of any member of
the EFG Group. No representation or warranty (express or implied) is made as to the accuracy, completeness, correctness,
timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility
or liability, whatsoever and howsoever arising is accepted in relation to the contents hereof by EFG Property Services d.o.o.
Beograd or any of its directors, officers or employees. This is an advertising report and is distributed free of charge.
Belgrade
Prime office developments completed - Belgrade
OFFICE MARKET
Usce Tower I
New Belgrade
25,000
EC
GTC House
New Belgrade
13, 500
GTC
Lukoil- Beopetrol
New Belgrade
11,000
Lukoil- Beopetrol
presence of foreign companies) in the office market started in 2004 and
GTC 19 Avenue and
Park Apartments
New Belgrade
60,000
GTC
continued through 2006. In the 1st half of 2008, the total estimated inventory
Atrium
New Belgrade
10,000
D&V
of Class A and B office space in Belgrade has reached 500 000 m2. The New
Comtrade TC
New Belgrade
9,000
Comtrade Group
Belgrade area attracts the greatest number of new developments, due to
EBC
New Belgrade
8,900
Meshulum Levinstein
its infrastructure and land availability as well as proximity of the airport and
Societe General
New Belgrade
6,200
Societe General
Corridor X.
Belgrade Office Park (I phase)
New Belgrade
3,000
CTP
Meteor
New Belgrade
3,000
Meteor
Building
THE MODERN OFFICE MARKET IN BELGRADE started to develop after the
political changes in 2000. The real expansionary phase (due to the increasing
In the second half of 2008, the new office deliveries amounted at approximately
Location
Size
Developer
Block 21
New Belgrade
2, 500
Meteor
80,000 m2. CBD area recorded the total new supply of little under 36,000 m2,
Grawe
New Belgrade
33,000
Grawe
divided almost equally between Class A (17,800 m2), and Class B office space
Balkanska II
City Center
7,000
Mali Kolektiv
(18,200 m2).
Belgrade’s suburban area did not record any new office deliveries in the
Prime office developments to be completed - Belgrade
second half of 2008. The amount of office space under construction amounts to
Building
Location
Size
Developer
around 297,000 m2, which are set for delivery in the period of 2009/10.
Savograd
New Belgrade
20,000
Neimar V
Airport City II Phase
New Belgrade
20,000
Africa Israel Group
Energoprojekt Building
New Belgrade
34, 211
Energoprojekt
shown signs of decreasing. Prices are expected to decrease, but that this is not
Napred Building
New Belgrade
12,000
Napred
due to financial crisis entirely but also due to the oversupply of office space that
Usce phase II
New Belgrade
25,000
EC
has been created the recent years. In 2009 demand is lower because of the
Tri lista duvana
City Center
9,000
EC
financial crisis (i.e. restrictive expansion policy) and supply is decreasing due
Mahler Projekt
New Belgrade
14,300
Siemens
to lack of investments and project financing, therefore yields are increasing.
Belgrade Office park phase II
New Belgrade
8,900
TM Immo
Due to the world financial crisis, the demand for office space in Belgrade has
Type of space
Cube Block 41
New Belgrade
22,000
GTC
Verano Block 23
New Belgrade
50,000
Verano Invest
MPC Block 43
New Belgrade
30,000
MPC Properties
Average sale prices
(euro/sqm)
Avg rents
(euro/sqm/month)
Class A
2 000 to 2 500
13 - 20
Belgrade Plaza Centre
(mixed use)
Downtown
100 000
Plaza Centers
Class B
1 000 to 1 500
9 - 13
VIG Plaza, block 11a
New Belgrade
50,000
Wiener Städische
and Promo Media
GTC Square
New Belgrade
25,000
GTC
SERBIA • June 2009
2
Οικονομικό Περιβάλλον
Belgrade
Existing shopping centers galleries and retail parks - Belgrade
RETAIL MARKET
ACCORDING TO STATISTICS, BELGRADE currently has 3.500.000m2 of retail
space, encompassing 14.500 units. Rents also show a wide range: from 70 to
200€/m2/month in Kneza Mihajla Street, main shopping street of Belgrade,
to 30€/m2/month (average) in Merkator, and Delta City, to 20€/m2/month in
neighbourhood shopping centres. Services charges are generally in the range
of 3-5€/m2/month. Other zones of interest to retailers are major boulevards
and high streets in residential areas with high pedestrian traffic, good visibility
and easy access, such as Pozeska and Glavna Streets and Kralj Aleksandar
Boulevard, where rental levels reach to 40-100 €/m2.
Building
Mercator Center
Metro
Metro
opening of two food-oriented developments-Roda Cash and Carry and Tus
Supermarket which continued its expansion throughout Serbia). The high
street segment has gained momentum in the second half of 2008 with the
opening of three Robne kuce department stores in Belgrade, one in the central
Size
Developer
New Belgrade
22, 400
Mercator
Zemun
8,000
Metro
Krnjaca
8, 500
Metro
Bezanisjka Kosa
9, 600
Merkur
Idea Extra
New Belgrade
18, 000
Agrokor
Immocenter
New Belgrade
10,000
EC
Delta City
New Belgrade
89, 000
Delta Invest
Palilula
33, 000
Verano Group
New Belgrade
3,000
Rodic
Merkur
Zira Center
TC Rodic
The growth of the Serbian retail market has been notable in 2008 (e.g. the
Location
RKB Terazije
RKB,,Beogradjanka’’
RKB Dusanovac
Terazije square
4 200
Verano
Kralja Milana Street
16 000
Verano
Ustanicka Street
2 000
Verano
RKB Zemun
Glavna Street
4 100
Verano
Usce SC
New Belgrade
130,000
EC
Krnjaca
40,000
Pevec
Pevec
shopping zone – Terazije Square, Beogradjanka and the others in Zemun and
Dusanovac.
Shopping centers galleries and retail parks- pipeline -Belgrade
TQ City, a mixed used complex comprising a shopping mall plus residential
Building
Location
and commercial facilities is being constructed in Indjija by a Belgrade company,
Dorcol Marina development
Tradeunique.
Immo center Cerak
Delta Planet
In March 30th 2009 the largest retail centre in Serbia, Usce Shopping Center
Brdo Shopping City
Size
Developer
City center
35, 000
Engel
Cerak
25, 000
EC
Delta Invest
Autokomanda
340 000
Ibarska motorway
500 000
Verano
Trosarina
72 000
Verano
was opened. With its 43,500m2 GLA (130,000m2 GBA) spread on four retail
Trosarina Shopping Mall
levels and two underground parking levels it will include many brands which
RKB Miljakovac
Miljakovac
5 300
Verano
are already present in Serbian market like Zara, Time Out, Mango, Cortefiel,
RKB Sava
New Belgrade
6 400
Verano
Springfield, Timberland and the most of new brands such as: Brown Shoes,
RKB Fontana
New Belgrade
4 300
Verano
Koton, Promod, Stiefelkoenig, Mandarina Duck, Big Bang, Tosca Blue, Prenatal
Visnjicka Plaza
Visnjica
100,000
Plaza Centers
and many others.
Belgrade
According to our analysis the most promising market to currently invest in
would be prime retail locations especially in the city of Belgrade, where there
is lack of prime retail locations and high class residential projects. Investment
Type of space
Shopping Center
AVERAGE RENTAL
PRICE €/sqm
AVERAGE SALES PRICE €/sqm
20-80
-
opportunities include: Shopping centers expansion i.e. Plaza projects currently
in Serbia: two shopping malls are currently under construction while the
Summary
third is in the pipeline, Global Finance:currently business towers are under
Predictions:
Demand
Prices
construction.
Office Market
decrease
decrease
Type
Location
euro/m2/month
High street
Knez Mihajlova
70-150
Semi anchor
New Belgrade
20
Food store
New Belgrade
30
Retail units
New Belgrade
25-35
Food court
New Belgrade
20
Retail Market
decrease
Stable/decrease
Retail Market - Malls
decrease
Stable/decrease
Residential Market
decrease
Stable/decrease
SERBIA • June 2009
3
Οικονομικό Περιβάλλον
Belgrade
Residential -Belgrade
RESIDENTIAL MARKET
IN THE CAPITAL, THE LARGEST NUMBER of new homes targeting the mid-end
market was constructed in the municipalities of New Belgrade, Cukarica, Vracar,
Zvezdara and Vozdovac. Larger apartment blocks appeared in the areas of New
Belgrade, Cukarica and Zvezdara due to the general availability of land. Apart
from GTC International, which is the first international developer on the Serbian
Building
Location
Size
Developer
Dedinje
15,000
Meridian Balkans
Zvezdara
3,000
MPC
Dedinje
4,000
Immo Point
New Belgrade
20,000
GTC
Panorama
Oaza
Vile beli dvor
Avenue 19
construction scene, the investor profile has basically remained the same.
Residential (pipeline)-Belgrade
Building
Location
Size
Developer
emerging areas of Savski Venac (known as Dedinje and Senjak) and Vracar.
Bellville
New Belgrade
178,000
Delta Invest
Apart from the higher quality finishing works, new developments usually include
Savograd
New Belgrade
14,911
Neimar V
one or two garage/parking spaces per apartment, while additional amenities
Vracar
Vracar
11,000
Lamda Development
such as security gate, on site management, gyms, etc. remain undersupplied.
Kalemegdan Park
Center
12,000
EC
Aleksandar
Dedinje
6,000
Aleksandar Gradnja
Immo East Francuska Apt
Center
12,000
Ocean Atlantic
The high-end apartment projects and villas are mostly concentrated in the
Sales prices in the area of Stari Grad have remained stable in the last couple
of years, with prices of prime properties ranging from EUR 2.500- 4 500/m2
and mid-range properties registering prices between EUR 1 900-2 300/m2.
The highest range for new elite properties was recorded in the area of Vracar
Development costs/m22
between EUR 3 000- 3 500/m2. Sales ranges in Dedinje have remained steady,
City
at EUR 2,500 – 3,500/m2 for high-end properties and EUR 2,000 – 2,500/m2
Belgrade
Location
euro/ sq m
Extra Zone
1000-2500
for average quality properties. The highest price increase was recorded in the
Zone I, II
600-1000
area of New Belgrade, where quality apartments range between EUR 3,000-
Zone III, IV, V
100-500
4,500/m2. Mid-end properties in the area of New Belgrade achieve prices of
EUR 1,700-2,200/m2, while Zvezdara and Vozdovac can be found in the range
Biggest current projects
of EUR 1,500-2, 400/m2.
Name
The supply of new apartments and houses in Belgrade is estimated at
Number of Units
Block 11c
110
Zvezdarski Horizonti
150
between 5,600 and 6,000 units per annum. Considering Belgrade’s population
Sava City
100
current residential stock and high demand, the supply is inefficient and is
Block 11a
130
expected to increase in the next few years.
Park Apartments
170
Bezanijska Kosa Energoprojekt
420
Galeria Apartments
103
Residential sales price- Belgrade
Dorcol Marina
Location
Belville
Center
Average price eur/m2
500
2,000
1900-3500
Dedinje
2000-3000
New Belgrade
1600-2500
Bezanija
1500-1800
Vracar
2500-3000
Zarkovo
1100-1400
Karaburma
1000 - 1100
New Belgrade (Blokovi)
1300-1800
Banovo brdo
1500-1800
Zemun
1400-1700
Banjica
1400 -1700
Visnjicka banja
1100 - 1300
Vozdovac
1200-1700
Konjarnik
1100-1500
SERBIA • June 2009
4
Οικονομικό Περιβάλλον
Belgrade
HOTEL MARKET
- A 200-room luxury hotel on the corner of Knez Mihajlova and Rajićeva
Street, near Kalemegdan Park is in the preparation phase. However, initial
Hotels Belgrade
Name
construction uncovered Roman ruins and it is anticipated that the archeological
Category
Aleksandar Palas
Hyatt Regency Belgrade
Zlatnik
Admiral Club
Balkan
Best Western M
Best Western Sumadija
Continental Hotel Belgrade
In Hotel Belgrade
Holiday In
Majestic
Moskva
Palace
Slavija Lux
Astoria
Kasina
Le Petit Piaf
Metropol Palace
*****
*****
*****
****
****
****
****
****
****
****
****
****
****
****
***
***
***
***
Name
N
Nacional
Park
Posta
Prag
Rex
Royal
Splendid
Srbija
Union
Beograd
Excelsior
Lav
Putnik
Slavija
Trim
Mihajlovac
Category
***
***
***
***
***
***
***
***
***
***
**
**
**
**
**
**
*
DELTA HOLDING has purchased the properties owned by International CG
(Genex) – including Hotel Continental in Belgrade - for nearly EUR 149m. In
February 2008 Delta purchased Hotel Park in City center. The sale took place
as a public tender in Belgrade, with the total sale price being EUR 148,800,999.
Properties purchased include the Continental Hotel, plus apartments, business
facilities and tennis courts, covering a total of 72,225m2. Delta Holding in
investigation may delay the project by several months or more.
- Hotel Metropol was bought by a Greek chain hotel operator “Grecotel”. It
is located in the prime location – Kralja Aleksandra Boulevard. It is currently
in refurbishment phase.
HOTEL DEMAND PROJECTIONS
Belgrade is expected to experience growth in hotel demand from
approximately 0.85 million guest nights in 2003 to a conservative estimate of
1.3 million and to an optimistic estimate of 1.6 million guest nights by 2010. This
estimate is driven primarily by an increase in business activity and GDP. Growth
in demand is expected to come from the mid-tier market segment more than
accommodations catering to upscale travelers. Prospective investors may
consider focusing more on development of quality mid-scale, economy and
budget hotels than on development of luxury and upscale hotels.
1.800.000
1.600.000
1.400.000
1.200.000
1.000.000
800.000
600.000
400.000
200.000
0
2004
2005
2006
Conservative Scenario
2007
2008
2009
2010
Optimistic Scenario
co-operation with Intercontinental Hotel Group (IHG) plans to introduce the
Crowne Plaza brand to Serbia and to provide new standards of excellence in
the hotel industry in Serbia.
The conservative scenario assumes slow growth of the economy, business
activities as well as spontaneous tourism development. A more optimistic
scenario assumes stronger economic and business growth and a proactive
Lamsa bought hotel Excelsior and became the owner of 51 % of Hotel Hyatt.
approach of the city authorities and other parties in stimulating tourism
Hotel IN was opened in August 2006, Hotel Holiday Inn (2007) and Hotel
development of Belgrade. In both scenarios it is expected that the hotel
Rezime Residence (2007)
demand will grow steadily.
Hotel Moskva was sold to a private investor. It is located in Terazije Street
At present, a number of Greenfield projects are underway. Furthermore,
in the center of Belgrade. This location is perfect for foreign tourists and
premium locations are waiting for potential investors. The following map
businessmen because of its location – 2 minutes walking distance from Knez
shows some of the locations available.
Mihailova Street.
The five-star Aleksandar Palas is a boutique hotel opened near the pedestrian
street Knez Mihajlova. It has nine luxury apartments and two restaurants.
The four-star Le Petit Piaf opened in Skadarlija. The hotel has seven rooms.
Hotel Jugoslavija, located in New Belgrade on a Danube river bank, is bought
by Hypo-Alpe-Adria Group. The plan is to refurbish it and make a five star hotel
of it, or to sell it to a chain operator Kempinsky
NEW HOTEL PROJECTS
- Serbian company Grading Invest is constructing a 50-room select service
hotel in Ivanium Center, a mixed-use complex near centrally located Terazije
Square. The construction will be completed in 2009.
1. Blok 13a
2. Blok 12
3. Blok 67
4. Dorcol
5. Knez Mihajlova & Rajićeva
6. Skadarlija
7. Ivanium Center
8. Kneza Milosa 32-36 (West)
9. Federal Ministry of Defense
10. Kneza Milosa & Highway (NE)
11. Kneza Milosa & Highway (NW)
12. Slavija Square (NW)
13. Slavija Square (NE)
14. Slavija Square (E)
15. Vračar
16. Depo
SERBIA • June 2009
5
Οικονομικό Περιβάλλον
Novi Sad
Shopping centers galleries and retail parks-existing
OFFICE MARKET
Nork
City center
8,000
Bazar
City center
11, 000
Delta Real Estate
Building
WITH 15 SUBURBAN SETTLEMENTS, the territory of the City of Novi Sad
encompasses the surface of 702.7 km2. The city with Petrovaradin and
Sremska Kamenica occupies the space of 129.4 km2 while construction
terrain occupies 106.2 km2.
Merkator
Location
Size
Developer
Aleksandar Gradnja
City center
36,000
Merkator
Metro
Novosadski put
8,000
Metro
Tempo
Novosadski put
12,000
Delta
There are four new developments built on the corner of Oslobodjenja Blvd.
and Futoska Street, next to the market. All of these buildings are for residential-
Shopping centers galleries and retail parks-in pipeline
commercial use and are located 100m from each other, while there is one
Building
Location
Size
more development under construction nearby. The buildings are very modern,
Liman 3
City Center
11,000
n/a
with large retail areas in the ground floor, office spaces on the first, second and
Novi Sad SM
Spens
45,000
Delta
Developer
the third floor and business and residential apartments on the top floors. The
number of floors ranges from 6 to 10 without the ground floor.
The sales prices for the new spaces in this area vary depending on the size
and the type of the space as follows:
• Retail spaces- average sales prices 2 000 to 2 500 €/m2
• Office spaces- average sales prices 700 to 2 500 €/m2
• Residential - average sales prices 900 to 1 800 €/m2
The dynamics of leasing of these spaces is satisfactory. The prices differ
depending on size, ranging between 10 and 20€/m2 for a space which is in the
grey phase (needs additional investments, such as interior design). This is the
most popular retail area so the fact that these spaces are leased out quickly
can be explained solely on the location.
On the other hand, rental prices for office space vary from 8-18 €/m2 depending
on the class of office space and are leased for a longer period of time.
RETAIL MARKET
RETAIL PREMISES –Development cost for these type of premises range
between 700-900eur per sqm. Attractive location for these types of premises
is industrial zone of Novi Sad. For smaller retail premises prices vary between
€500-700/q m in prime city locations in downtown.
Prime rents - Novi Sad
Type
Location
euro/m2/month
Trend
Zmaj Jovina
50-80
Stable
Other
City center
35-50
Stable
Other
Periphery
10-20
Stable
High street
SC
20
SERBIA • June 2009
6
Οικονομικό
Novi
Sad Περιβάλλον
Type of Space
Average rental price €/sqm
Average sales price €/sqm
20
/
Shopping centers
RESIDENTIAL
CONSTRUCTION OF RESIDENTIAL PREMISES in Novi Sad is the most popular
form of building construction, especially small average quality apartments
up to 60sqm. At the moment the most attractive locations for construction
of residential premises are the city center without pedestrian streets and
municipality areas called Grbavica and Liman. Average development cost
ranges between 450-500eur per sq m.
Residential sales price-Novi Sad
Location
Average price eur/m2
Center
1000-1700
Liman
900-1400
Detelinara
900-1300
Novo naselje
900-1300
Residential (pipeline)-Novi Sad
Building
n/a
Liman III
Location
Size
Developer
City center
50,000
Aleksandar Gradnja
Liman
25,000
n/a
HOTEL MARKET
Hotels Novi Sad
Name
Category
Park
*****
Leopold I
*****
Gymnas
****
Car-Royal Apartments
****
Aleksandar
****
Novi Sad
***
Sajam
***
Zenit
***
Vojvodina
***
Rimski
**
Mediteraneo
**
Panorama
**
Sveti Georgije
*
Duga
*
SERBIA • June 2009
7
Οικονομικό Περιβάλλον
Nis
GENERAL INFORMATION
BEING THE SECOND LARGEST REGIONAL CENTER in the country and
the center for Southeast Serbia, Nis is keeping pace with the nationwide
development transition and presents some often overlooked possibilities for
real estate investment. Real estate market in Nis is still far less developed
than the market in Belgrade. Due to this fact the situation is that the supply
of high quality office space is virtually non existent relevant to class A office
space. Most of stock in Nis consists of old office buildings which have to be
renovated and modernized.
Foreign companies present in Serbian market are still not prepared
to extend their business towards Nis. There are few large multinational
companies present in Nis as (Phillip Morris) but they have small marketshare
in Serbia. Large business/ residential complex with 30,000 sqm is currently
being built in Nis.
The most of the firms willing to do business in this area are usually big
retailers who notice the chance in the city’s size.
OFFICE MARKET
SEVERAL MODERN BUT SMALL-SCALE OFFICE developments in Nis are
scheduled for opening during 2008 and 2009. Additional office space of 2,600 m2
GLA will be offered within mixed-use development TPC Srbija, also referred as
strian zone.
Office tower. Both projects are located within the Nis’s main pedestrian
cial, mobile
Companies which are percent are mostly from the fields of financial,
and network services, real estate consultancy etc.
Office space prices in Nis
Year
Average sales prices (€/m2)
Average rent prices
rices (€/m2)
2001.
500 - 900
7-100
2002.
500 - 900
7-122
2003.
600 - 1000
8-144
2004.
700 - 1100
10-155
2005.
700 - 1200
10-155
2006.
800- 1300
12-155
2007.
800- 1400
13-155
2008.
800-2000
13-200
SERBIA • June 2009
8
Οικονομικό Περιβάλλον
Nis
RETAIL MARKET
a rising trend in the recent years, due to a growing demand in this real estate
AS PER DEVELOPMENT OF RETAIL PREMISES there is a slightly better
sector. The newly developed high-end projects in downtown market achieved
situation than in the office market. In the last two years construction of large
prices of 1,200 eur/sqm.
shopping malls was registered and the first international standard shopping
center (METRO) was opened in 2007. Average development cost per sqm
The city center, Knjazevacka Jug and Mokranjceva Streets continue to be
the prime locations for high-end residential sale and lease.
stabilized at 600-800 euros.
The main retail street in Nis is the pedestrian Pobedina street with Nis’s popular
Residential (pipeline) Nis
shopping mall called Kalca, where the average rent can go to 30-40 euro/sqm.
Building
Rental levels of retail units along high streets during 2008 was about 40-70 eur/
Mozaik Residential Complex
Location
Size
Developer
Downtown
21 000
DV Mozaik Inzenjering
sqm. Beside these attractive locations, there are underground passages around
Residential sales price-Nis
the city center where the rents vary between euro 10-20per sq m.
Location
Shopping centers galleries and retail parks-existing - Nis
Center
Average price eur/m2
900-1200
Location
Size
Developer
Calije
700-800
Kalca
City Center
30,000
City of Nis
Palilula
800-1000
Tempo
City entry
10,000
Delta Invest
Pantelej
700-800
City center
32,000
Merkator
Duvaniste
950-1000
Highway- city entry
9,900
Metro
Mokranjceva Street
650-900
Bulevar Nemanjica Street
800-1000
Building
Merkator
Metro
Shopping centers galleries and retail parks-pipeline - Nis
Building
Location
Size
Developer
RK Pionir
Center
20,000
MPC
RKB
Center
6,000
Verano Invest/
Marphin group
Nis
Type of Space
Shopping centers
Average rental price €/sqm
30-40
Average sales price €/sqm
-
RESIDENTIAL MARKET
HOTEL MARKET
Hotels Nis
Name
Category
My Place
****
Aleksandar
***
Ambasador
***
Nais
***
Niski Cvet
***
Panorama Lux
***
IN THE PAST, NIS’S PRIME residential market has largely been in the
multifamily area called Duvaniste 3 and central city area, which have witnessed
a significant increase in construction. Nis residential sales prices have marked
SERBIA • June 2009
9
Οικονομικό Περιβάλλον
Kragujevac
OFFICE SPACE
THE CITY OF KRAGUJEVAC recently experienced increasing developments in
the real estate sector. There is lack of standard office space in Kragujevac,
most of the office space available is converted residential. Business premises
in Aerodrom area with the total size of approximately 3, 000sqm is the only
real office space. Average rents for this building range between 6-10 eur/sqm
and around 1,000 eur/sqm for sale.
RETAIL SPACE
FEW LARGE RENOWNED RETAILERS have recently opened their premises
in Kragujevac. Trends are indicating that large investors (i.e. Plaza Centers,
Tempo, Idea, Mercur, Tush SC etc.) are interested in investing in Kragujevac.
Bubanj Lake project will consist of two parts with following purposes: services,
public buildings, business buildings and parks. Plaza Centers project which
will encompass about 30,000sqm of retail space is also in the pipeline.
Retail space- existing – under construction - Kragujevac
Building
Location
Size
Developer
Metro Cash and Carry
Kragujevac
6,000 sp
Metro Cash and Carry
Mercator
Kragujevac
20,000
Mercator
Radnicki stadium
Kragujevac
1,500
N/A
Robne Kuce Beograd
Kragujevac
7,700
Verano Invest/
Marphin group
Kragujevac Plaza
Kragujevac
65.000
Plaza Centers
Rental levels for retail space in Kragujevac
Type
Pedestrian zone
Other suburbs
Location
Average euro/m2/month
Dr. Zorana Djindjica
30
Kragujevac
6-15
RESIDENTIAL SPACE
KRAGUJEVAC HAS RECENTLY experienced a boom in residential market.
Demand is still higher than supply thus driving prices up. Stara Radnicka
kolonija is currently the largest project in Kragujevac, with first phase of
90 apartments already completed, while another 90 are planned. Total
investment until now amounts to 750,000 Euros. Residential zone Zelenilo is
also scheduled for construction, the project consisting of 3 parts with a total
area of 7, 000sqm.
Type
Location
Euro/sqm
New buildings
City center
1000-1300
Old buildings
City center
800-1000
New buildings
Suburbs
600-800
Old buildings
Suburbs
500-800
SERBIA • June 2009 10
Οικονομικό Περιβάλλον
Construction Procedure
A NOTICE OF THE START OF CONSTRUCTION
AFTER THE COMPLETION of building documents, the investor should select
AN ASSESSMENT OF URBAN CONDITIONS
the contractor who will be responsible for the whole building site and notify
THIS ASSESSMENT IS BEING DONE based on the extract from the urban plan.
the city or municipality of the start of works. The investor is obliged to provide
The extract contains all requirements and data necessary for the elaboration
the Office in charge of issuing the construction approval with the name of the
of a general project and particularly for the development and building lines, as
contractor, construction start date, and completion target date within a period
well as leveling requirements. This document can be obtained within 8 days
of 8 days before construction starts.
from the date of submission of an application, on payment of the actual costs
of their issuance. It is issued by the competent city/municipal authorities or the
Ministry of Capital Investment.
In Belgrade, the extract and other documents for structures with respective
areas of up to 800sqm each can be obtained from the Department for Property
Rights Relations and Construction of the city municipality where the structure is
located. For structures over 800sqm, the necessary documents can be obtained
in the Secretariat for Urban Planning and Construction. In other cities and
municipalities in Serbia, the documentation is obtained in the office of the city
or municipality, where the structure is erected. Lastly, for structures of national
significance, the documents are issued by the Ministry of Capital Investment.
ACQUIRING CONSTRUCTION LAND
CONSTRUCTION LAND can be acquired by leasing land and obtaining the
“right to use” or converting agricultural land into construction land.
OBTAINING A CONSTRUCTION APPROVAL
PRIOR TO THE CONSTRUCTION of a structure, a potential investor is obliged
to obtain a construction approval and prepare the technical documentation for
the construction (general project, conceptual project, main project, execution
project, and as-built project).
As part of the application, the following should be submitted:
• An extract from the urban plan, not older than 6 months;
Also, an investor must submit:
• A conceptual presentation of the project, in compliance with the extract;
• confirmed main project,
• An evidence of ownership, or leasehold rights to the construction land, or
• report on completed technical control,
property rights in an object, or the right to use undeveloped construction land;
• The report on setting out the building plot and the regulation protocol
issued by the Republic Geodetic Authority, including the appropriate copy of
the plot plan;
• Other evidence required in the urban plan.
• construction approval,
• evidence of payment of compensation for the development of construction
land, and
• evidence that the administrative fee has been paid.
In addition, the investor must also report to the municipality office in charge
of inspection that the construction of the structure has started. The investor
The construction approval is issued within 15 days from the date of submission
can start construction works when the relevant municipal department
of the application. The approval for infrastructural works is issued by the Ministry
confirms receipt of the notification on the commencement of works. The
of Capital Investment, while the issuance of the approval for other structures is
receipt of documentation should be confirmed within 8 days, provided the
the responsibility of the city or municipality. The approval is not obligatory for
documentation is complete. Prior to construction, the surveyor should set out
the construction of auxiliary structures, nor is it necessary for adaptation or
the building site, after which it will be possible to commence excavations for
renovation but it is required for the reconstruction of premises. Upon obtaining
the foundation. Upon the construction of the foundation, the contractor should
the construction approval, the consulting company will start elaborating other
submit the geodetic survey of built-up foundation, so that the competent body
documents (e.g. main project) for the investor, whereby technical inspection of
can inspect its conformity with the main project. Within 3 days, if everything is
the design must be carried out by another licensed consultant.
in order, a written certificate will be received and the works can be continued.
SERBIA • June 2009 11
Οικονομικό Περιβάλλον
Construction
Procedure
CONSTRUCTION
covers 83% of cadastral municipalities, with the Land Cadastre and Land
THROUGHOUT THE CONSTRUCTION STAGE, the investor must have
Books accounting for the remaining 17%. The Real Estate Cadastre contains
construction documents (if the main project does not contain details required
the data on real estate, its shape and position, surface area, form of use, land
for the construction process) and provide supervision.
fertility, cadastral income, real rights and rights holders, as well as the data on
encumbrances and limitations.
TECHNICAL INSPECTION
A TECHNICAL INSPECTION of a structure is done upon the completion of
Unlike the Real Estate Cadastre, the Land Cadastre contains no data on
construction, i.e. the completion of all the works specified in the construction
real estate property rights, featuring information on plots and structures built
approval and defined in the main project or upon the completion of a part of the
on land with respect to their position, shape, area, type of land, land fertility,
structure for which an occupancy permit may be issued. Upon the submission
class, cadastral income, and users. Lastly, the Land Book is a public record
of the investor’s request for the technical inspection, this assessment may also
registering real estate (land and structures), real rights, encumbrances, and
be carried out simultaneously with the construction process, if the verification
limitations related to such real estate.
of the actual condition of certain parts of the structure is not possible after
Once the unified Real Estate Cadastre is introduced, registration of real
its completion. The inspection includes the control of compatibility of as-built
estate will be done in one place–with a local office of the Republic Geodetic
conditions with the construction approval and technical documentation on the
Authority. Currently, the procedure is handled by a competent court.
basis of which the structure was constructed, as well as with the technical
regulations and standards applicable to certain trades or materials, equipment,
and installations.
PROBATION OCCUPANCY
The Construction Procedure
Assessment of Urban Conditions
TO ENSURE THE SUITABILITY for the use of a structure, an assessment and
verification of installations, devices, machinery, stability or safety of structure,
Acquiring Construction Land
devices and equipment for environmental protection may take place. If
envisaged by the technical documentation, the commission in charge of a
technical inspection may propose to the relevant office to approve probation
Obtaining a Construction Approval
occupancy, provided the conditions are met. The probation period that cannot
last longer than 1 year. Upon the expiration of a probation period, an investor is
Notice of the Start of Construction
obliged to submit the results of the probation occupancy to the relevant office.
OBTAINING AN OCCUPANCY PERMIT
Construction
TO OBTAIN AN OCCUPANCY PERMIT, the investor must submit the main project
(with possible changes occurred during construction) which is compatible
Technical Inspection of the Structure
with the construction approval and the technical inspection of a structure.
The structure may be put in operation only upon obtaining the occupancy
Probation Occupancy
permit. The office competent for issuing the construction approval issues the
occupancy permit within 7 days from the date of receiving the commission’s
findings which have established the structure to be suitable for use.
REGISTRATION IN THE CADASTRE
Obtaining an Occupancy Permit
Registration in the Real Estate Cadastre
THE FINAL STAGE IN THE CONSTRUCTION PROCESS is the registration of a
structure in the Real Estate Cadastre, after the occupancy permit is obtained.
The process of establishing the Real Estate Cadastre on the entire territory
of Serbia is under way. By 2010, a comprehensive system of tracking real
estate and real estate property rights will replace the existing records on real
estate–the Land Cadastre and Land Books. The project is aimed at boosting
the security of ownership and real estate rights, while leading to a transparent
and prosperous real estate market. At present, the Real Estate Cadastre
SERBIA • June 2009 12
Οικονομικό
Contact
Information
Περιβάλλον
ZONES OF BELGRADE
EFG Property Services d.o.o. Beograd
62-64 Cara Dusana, 11000 Belgrade, tel: +381. 11. 202. 2410
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