Belgrade City Report, Q3 2012
Report Authors: Jones Lang LaSalle
Report Summary:
ECONOMY
Given the domestic challenges in the post-election period and on-going economic turmoil in Europe, the Serbian economy seems to be continuing to struggle, with no signs of improvement by the end of the year. Officially published data for Q2 indicated a negative GDP growth of 0.8%, while IHS Global Insight modified their forecast, estimating -0.2% GDP growth for the entire 2012.
OFFICE MARKET
Supply: The third quarter saw the completion of a 17,000 m2 class A office building, constructed as the new Raiffeisen Bank HQ in Serbia. The total investment value of the new Raiffeisen Bank office building, located at Block 66 in New Belgrade, is estimated at over EUR 40 million.
RETAIL MARKET
Supply: The third quarter saw the reopening of refurbished shopping centre, Mercator (22,000 m2 GLA), in New Belgrade. In the year celebrating its tenth anniversary, the investor of the first modern shopping centre in Serbia seems to have accomplished its goals: refurbished interior space, improved layout and increased demand from international retailers. Besides the existing brands that remained in the centre, the renovated scheme attracted new retailers such as Lindex, Monnalisa, Sons & Daughters and Orsay.
INDUSTRIAL MARKET
Supply: Despite its extremely favourable geographic and strategic position at the Pan European corridors VII and X, Serbia has a very low modern logistics supply, estimated at just 162,000 m2. The first modern warehouses appeared in 2005 and the majority of them were constructed in 2007 and 2008. Investors’ preferred locations for logistics and industrial development were the wider Belgrade city area (Dobanovci) and the southern Vojvodina’s municipalities of Pećinci, Stara Pazova and Indija.
About the Author:
Today's changing real estate market dynamics and the volatile world in which our industry operates require knowledge and intelligence to create competitive advantage like never before. Jones Lang LaSalle's industry-leading research group delivers market analysis and insights that drive value in real estate decisions and support successful strategies for clients.
