October
Property
2010
Market Report S Highlights
E
R
B
I
A
Serbia: Macroeconomic Indicators 2008
2009
2010f
2011f
Real GDP (%)
5.5
-3.0
1.5
3.0
CPI (end of period) (%)
8.6
6.6
6.5
4.5
Unemployement Rate (% of labor force)
14.7
16.1
18.5
16.5
Current Account (% GDP)
-17.1
-5.7
-8.5
-9.0
Net FDI (€bn)
1.8
1.4
1.5
2.0
Credit to Enterprises (% GDP)
25.8
29.4
30.8
32.9
Credit to Households (% GDP)
14.0
14.7
15.3
16.4
POLAND
UKRAINE
ROMANIA SERBIA BULGARIA
GREECE
Sources: Eurobank EFG Research & Forecasting Division
Disclaimer
The present advertising brochure «Property Market Report» has been issued by EFG Property Services d.o.o. Belgrade. Editor in charge: LADISLAV TOMASEVIC Research Group: MILENA BESLAC Date October 1, 2010
This report has been issued for advertising purposes by EFG Property Services d.o.o. Belgrade, 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. Belgrade 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. Belgrade. 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. Belgrade or any of its directors, officers or employees. This is an advertising report and is distributed free of charge.
Belgrade
Type of space
OFFICE MARKET
Average sale prices (euro/sqm)
Avg rents (euro/sqm/month)
Class A
2 000 to 2 500
13 - 17
Class B
1 000 to 1 500
9 - 12
THE OFFICE MARKET IN BELGRADE has been divided into the Central Business District (CBD), the Wide center and the Suburban area. Real Estate market currently holds a supply of approximately 299,000sq.m. of Class A and
Prime office developments completed - Belgrade
223,000sq.m. of Class B office space. This particular market segment has a
Building
Location
Size
Developer
continuous tendency toward a modern Class A type of office developments.
Usce Tower I
New Belgrade
25,000
EC
The Central Business District holds approximately 80% of the total supply.
GTC House
New Belgrade
13, 500
GTC
However, due to the expansion of the city, the wide center areas have begun to
Lukoil- Beopetrol
New Belgrade
11,000
Lukoil- Beopetrol
radiate around the CBD toward areas with more affordable rents and parking
GTC 19 Avenue and Park Apartments
New Belgrade
60,000
GTC
Atrium
New Belgrade
10,000
D&V
availability. In comparison to other CEE metropolitan areas, Serbian cities currently hold the lowest ratio between total office stock per capita. This fact is indicative of further development potential and much needed investment ventures in the sector. Total office stock in Belgrade (Yr 2006-2009) F 2009 2008
New Belgrade
9,000
Comtrade Group
EBC
New Belgrade
8,900
Meshulum Levinstein
Societe General
New Belgrade
6,200
Societe General
Belgrade Office Park (I phase)
New Belgrade
3,000
CTP
Meteor
New Belgrade
3,000
Meteor
Block 21
New Belgrade
2, 500
Meteor
Grawe
New Belgrade
33,000
Grawe
City Center
7,000
Mali Kolektiv
Savograd
New Belgrade
20,000
Neimar V
Napred Building
New Belgrade
12,000
Napred
Mahler Project
New Belgrade
14,300
Siemens
GTC Square
New Belgrade
25,000
GTC
Energoprojekt Building
New Belgrade
34,211
Energoprojekt
VIG Plaza block 11a
New Belgrade
50,000
Wiener Städische and Promo Media
Balkanska II
H2 2007 H1 2007
2006 0 200.000 Source: Serbian Statistical Office
Comtrade TC
400.000
600.000
Prime office developments under construction- Belgrade Prominent new developments have mostly been recorded in the area of New
Building
Belgrade, where most newly-built office space can be categorizes as Class
Airport City II Phase
A. Master Plan for the city of Belgrade allows for more liberal architectural
Usce phase II
design of new construction, however most available construction land can
Tri lista duvana
City Center
9,000
EC
also be found in the area of Belgrade.
Belgrade Office park phase II
New Belgrade
8,900
TM Immo
Demand for high quality office space in the Belgrade area can be characterized
Verano Block 23
New Belgrade
50,000
Verano Invest
as one of the highest in the region, particularly due to a large number of
MPC Block 43
New Belgrade
30,000
MPC Properties
incoming foreign companies willing to invest in modern, non-converted, open
Belgrade Plaza Centre (mixed use)
Downtown
100 000
Plaza Centers
plan offices. Approximately 70% of the demand is for small to medium offices
Location
Size
Developer
New Belgrade
20,000
Africa Israel Group
New Belgrade
25,000
EC
(areas ranging between 250 to 1,000sq.m). In 2009 the total annual delivery amounted to 135,000sq.m., of which 77,500sq.m of Class A office space and 57,500sq.m. of class B office space. Vacancy rates have been recorded with an increase when comparing rental data for 2007 and 2008, considering office space of both Class A and B. Increase in vacancy rates is recorded over the course of 2010, in part due to the world economic crisis but also as a result of incoming new development in the office sector planned for completion in the near future. Vacancy rate for class A office space at the end of 2009 amounted to 17, 5% and 23, 1% for class B office space.
SERBIA • October 2010
2
Οικονομικό Περιβάλλον Belgrade
Existing shopping centers galleries and retail parks - Belgrade
RETAIL MARKET POPULATION OF BELGRADE IS currently recorded at approximately 2 million inhabitants, making the city an environment with great investment potential with the regards to the retail sector. Many foreign investors have recognized this fact; hence the competition has heightened to a level where retail real estate market can be positioned as the most effective market segment in Serbia. Development of shopping centers in Serbia started in Yr 2002, with the market entrance by regional conglomerates such are Veropoulos, Mercator, IDEA, ImmoCenter, etc – all of which have strategically been located in the New Belgrade area. At the onset of Yr 2007 retail/shopping center stock has been increased by approximately 70,000 sq m of space. All of these centers recorded a major success, therefore encouraging further development in the sector while constantly bringing new concepts and contemporary facility construction. Downtown Belgrade on the other hand represents the main high street shopping and pedestrian zone. Prime retail areas are Knez Mihajlova Street,
Building
Location
Mercator Center
Size
Developer
New Belgrade
22, 400
Mercator
Zemun
8,000
Metro
Metro 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 RKB Terazije RKB ,,Beogradjanka’’ RKB Dusanovac RKB Zemun Usce SC
Terazije square
4 200
Verano
Kralja Milana Street
16 000
Verano
Ustanicka Street
2 000
Verano
Glavna Street
4 100
Verano
New Belgrade
130,000
EC
Kika
Bezanijska Kosa
22,600
Kika
Pevec
Krnjaca
40,000
Pevec
Kralja Petra St., Terazije Square, Blvd Kralja Aleksandra, Slavija Square, etc. Most prominent high street shopping usually houses retail units of approximately 500 to 1,000 sq m in size, where smaller retail units are
Shopping centers galleries and retail parks- pipeline -Belgrade
occupied by local cafes, domestic brand retailers, bank branches and other
Building
service areas.
Dorcol Marina development
Location
Size
City center
Immo center Cerak
Developer
35, 000
Engel
Cerak
25, 000
EC
Autokomanda
340 000
Delta Invest
Ibarska motorway
500 000
Verano
In March 30th 2009 the largest retail centre in Serbia, Usce Shopping Center
Delta Planet
opened. With its 43,500m2 GLA (130,000m2 GBA) spread on four retail levels
Brdo Shopping City
and two underground parking levels it includes many brands already present
Trosarina Shopping Mall
Trosarina
72 000
Verano
on the Serbian market like Zara, Time Out, Mango, Cortefiel, Springfield,
RKB Miljakovac
Miljakovac
5 300
Verano
Timberland and the most of new brands such as: Brown Shoes, Koton,
RKB Sava
New Belgrade
6 400
Verano
Stiefelkoenig, Mandarina Duck, Big Bang, XYZ, Prenatal and many others.
RKB Fontana
New Belgrade
4 300
Verano
Austrian furniture retailer Kika opened its first store in the second half of
Visnjicka Plaza
Visnjica
100,000
Plaza Centers
2009, total GBA 22,600sqm. Slovenian home and appliance retailer opened its
Black Oak Developments
Indjija
30,000
Black Oak development
Belgrade-higway E- 70
50,000
second store in Belgrade with total GBA of 29,500sqm.
Type
Location
Zmaj
euro/m2/month
Rodic
BELGRADE
High street
Knez Mihajlova
40-70
Semi anchor
New Belgrade
15
Type of space
Food store
New Belgrade
25
Shopping Center
Retail units
New Belgrade
25-35
Food court
New Belgrade
20
Average Rental Price €/sqm
Average Sales Price €/sqm
30
-
SUMMARY Predictions:
Demand
Prices
Office Market
decrease
decrease
Retail Market
decrease
decrease
Retail Market - Malls
decrease
decrease
Residential Market
decrease
decrease
SERBIA • October 2010
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 Panorama Oaza Vile beli dvor Avenue 19
Location
Size
Developer
Dedinje
15,000
Meridian Balkans
Zvezdara
3,000
MPC
Dedinje
4,000
Immo Point
New Belgrade
20,000
GTC
construction scene, the investor profile has basically remained the same. Residential completed -Belgrade The high-end apartment projects and villas are mostly concentrated in the
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
Aleksandar
Dedinje
6,000
Aleksandar Gradnja
such as security gate, on site management, gyms, etc. remain undersupplied.
Immo East Francuska Apt
Center
12,000
Ocean Atlantic
Sales prices in the area of Stari Grad are showing decreasing trends due to global economic crisis with prices of prime properties ranging from €2.000-
Development costs/m22
3,000/sq.m. and mid-range properties registering prices between €1 400-1,800/
City
sq.m.. The highest range for new elite properties was recorded in the area of
Belgrade
Location
euro/ sq m
Extra Zone
1000-2500
Vracar between €2,000- 3,000/sq.m.. In Dedinje sale prices range between
Zone I, II
600-1000
€2,300 – €3,330/sq.m. concerning luxury properties and €2,000 – €3,000/sq.m.
Zone III, IV, V
100-500
concerning average quality properties. In the area of New Belgrade, mid-end properties’ prices range between €1,700-2,200/sq.m., while in Zvezdara and Vozdovac prices range between €1,200-2, 000/sq.m. The supply of new apartments and houses in Belgrade is estimated at between 5,600 and 6,000 units per annum. Considering Belgrade’s population current residential stock and high demand, the supply is inefficient and is expected to increase in the next few years.
Residential sales price- Belgrade Location Center
Average price eur/m2 2000-3300
Dedinje
2000-3000
New Belgrade
1300-1800
Bezanija
1500-1800
Vracar
1900-3000
Zarkovo
900- 1100
Karaburma
1000 - 1100
New Belgrade (Blokovi)
1300-1800
Banovo brdo
1500-1800
Zemun
1300-1600
Banjica
1300 -1600
Visnjicka banja
1000 - 1200
Vozdovac
1200-1700
Konjarnik
1100-1500
SERBIA • October 2010
4
Οικονομικό Περιβάλλον Belgrade
continue Hotel
Rating
four-star segment of the Belgrade hotel/hospitality market. Brand new
Majestic
****
n/a
87
3
65 €
hotels such are Zira Hotel, Holiday Inn, Bach hotel and IN Hotel enhanced the
Moskva
****
1973
138
1
56 €
accommodation supply, where some of the already existing has been subject
Palace
****
1989
86
1
53 €
to major reconstruction efforts (Metropol Palace Hotel and Putnik Hotel in
Slavija Lux
****
1973
96
1
106 €
New Belgrade). Reoccurring European trend of smaller boutique-type hotels
President
****
2005
27
2
90 €
is finding its way into the Belgrade market as well – Admiral Club Hotel, Mr.
Le Petit Piaf
***
2004
12
0
150 €
HOTEL MARKET
Activation YR
OVER THE PAST SEVERAL YEARS, most dynamic changes occurred in the
Presidents, etc). Ongoing world-wide financial crisis heavily affected Serbia as
Number Conf Single Rm of rooms Rooms Rates
*Prices include bed and breakfast
well, in the last quarter of 2008 and the beginning of 2009. Coupled with current
Belgrade is the principal base of all administrative, economic, financial,
political and economic issues present in Serbia, a decrease of tourists was to be
educational and cultural activity for the Republic of Serbia. It is also a regional
expected. However, the hosting the Eurosong competition in 2008 along with a
transit center. The hotel market has experienced a 20% growth in the number
few other important congressional events somewhat improved the operating
of tourists, in the past year. Most visitors are arriving from Slovenia, Bosnia
results in the hotel market. Considerable contribution to a temporary increase
and Herzegovina, Macedonia, Croatia, Italy, Germany and United Kingdom.
in foreign visits was also provided by the Belgrade Summer Universiade that
In comparison with other Central and Eastern European capitals, Belgrade’s
took place in July of 2009. Overall average length of tourist stays in a period of
yearly demand for hotel accommodation is still substantially lower, due to
past five years is approximately 2.2 nights per guest. Belgrade Statistics office
lower economic activity, lack of development and international marketing.
informs that in 2007 1,563 tourist nights were recorded (701 domestic = 44.8% of total, and 862 foreign = 55.2% of total). Further, 46.9% of domestic and 53.1%
Above many cultural, historical and natural market development instigators,
of foreign tourist nights equal a total of 1,431 recorded in 2008; first half of
market demand in mostly influenced by an increased amount of business
2009 records show 37.5% of domestic and 62.5% of foreign stays totaling in 817.
activity. Higher demand is usually experienced in the spring and autumn,
Serbia was one of very few European countries to record an increase in tourist
which indicated a dominance in business related travel.
overnights in the first half of 2009; approximately an 8% increase attributed in comparison to same time frame in 2008.
City
Current stock holds approximately 350 rooms in five-star hotels and around
Athens
1.090
Munich
1.020
1,400 rooms in four-star hotels. Majority of hotels are located in the city center,
Amsterdam
1.760
Moscow
2.211
both within its inner and wider areas – 27 hotels, with around 2,500 rooms.
Vienna
621
Oslo
2.577
Additional hotels exist in New Belgrade, city of Zemun, and southern parts of
Berlin
1.489
Prague
Belgrade. A significant numbers of the hotels have recently been privatized or
Bern
1.361
Rome
are in the pipeline.
Bruxselles
1.702
Sarajevo
325
The table below is an overview of upper and medium ranked hotels in Belgrade,
Budapest
383
Skopje
440
and this information was taken into account during analysis. Information
Bucharest
619
Sofia
380
provided states hotel ranking, capacity, year of construction/re-construction,
Istanbul
928
Thessaloniki
700
and price levels (for single occupancy).
Copenhagen
2.018
Stocholm
2.622
London
2.073
Warsaw
1.115
528
Zagreb
Hotel
Ljubljana
City
Distance (km)
901 1.280
390
Rating
Activation YR
*****
2004
9
0
240 €
SUPPLY
Hyatt Regency Belgrade *****
1989
308
8
275 €
Serbia is an attractive tourist destination offering vibrant cities, mountain
Hotel Zlatnik - Zemun
*****
2004
32
1
120 €
resorts and spas. Serbia currently comprises 295 hotel facilities, 87 motels and
Continental Belgrad
****
1979
415
7
205 €
344 vacation complexes, mountain lodges and other accommodation facilities,
Hotel Admiral Klub
****
2006
17
0
200 €
totaling 88,598 beds (37,234 in hotels). Belgrade offers 46 hotels with the total
Holiday Inn
****
2006
141
2
180 €
capacity of 6,229 beds. The four-star category takes up the largest share
IN Hotel
****
2007
187
3
140 €
(48.21%), followed by the three-star category (33.65%). There is a considerable
Best Western M
****
2001
176
3
90 €
lack of five-star hotels in Belgrade, presently counting only three facilities –
Sumadija
****
2005
104
3
95 €
Hyatt (372 beds), Aleksandar Palas (9 beds) and Zlatnik (49 beds). The largest
Balkan
****
2006
80
1
75 €
hotel is the Continental hotel, offering the capacity of around 750 beds.
Aleksandar Palas
Number Conf Single Rm of rooms Rooms Rates
Distance (km)
SERBIA • October 2010
5
Οικονομικό Περιβάλλον
DELTA HOLDING has purchased the properties owned by International CG
approach of the city authorities and other parties in stimulating tourism
(Genex) including Hotel Continental in Belgrade - for nearly EUR 149m. In
development of Belgrade. In both scenarios it is expected that the hotel demand
February 2008 Delta purchased Hotel Park in City center. The sale took place
will grow steadily. At present, a number of Greenfield projects are underway.
as a public tender in Belgrade, with the total sale price being EUR 148,800,999.
Furthermore, premium locations are waiting for potential investors. The
Properties purchased include the Continental Hotel, plus apartments, business
following map shows some of the locations available.
facilities and tennis courts, covering a total of 72,225m2. Delta Holding in 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. Lamsa bought hotel Excelsior and became the owner of 51 % of Hotel Hyatt. Hotel IN was opened in August 2006, Hotel Holiday Inn (2007) and Hotel Rezime Residence (2007). Hotel Moskva was sold to a private investor. It is located in Terazije Street in the center of Belgrade. This location is perfect for foreign tourists and businessmen because of its location – 2 minutes walking distance from Knez 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
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
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 constructed a 50-room select service hotel in Ivanium Center, a mixed-use complex near centrally located Terazije Square. The construction was completed in 2009. - A 200-room luxury hotel on the corner of Knez Mihajlova and Rajićeva Street, near Kalemegdan Park is in the preparation phase. However, initial construction uncovered Roman ruins and it is anticipated that the archeological 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. 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
SERBIA • October 2010
6
Οικονομικό Περιβάλλον
Novi Sad
continue Building
Location
Size
Merkator
City center
36,000
Merkator
Developer
OFFICE MARKET
Metro
Novosadski put
8,000
Metro
WITH 15 SUBURBAN SETTLEMENTS, the territory of the City of Novi Sad
Tempo
Novosadski put
12,000
Delta
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.
Shopping centers galleries and retail parks-in pipeline
There are four new developments built on the corner of Oslobodjenja Blvd. and
Building
Location
Size
Futoska Street, next to the market. All of these buildings are for residential-
Liman 3
City Center
11,000
n/a
commercial use and are located 100m from each other, while there is one
Novi Sad SM
Spens
45,000
Delta
more development under construction nearby. The buildings are very modern,
BIG CEE retail parks
Novi Sad
28,500
BIG
Developer
with large retail areas in the ground floor, office spaces on the first, second and 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.
Type of Space
The sales prices for the new spaces in this area vary depending on the size and
Shopping centers
Average rental price €/sqm
Average sales price €/sqm
14
/
the type of the space as follows: • Retail spaces- average sales prices
1,500 to 2 000 €/m2
• Office spaces- average sales prices
700 to €1,800/sqm €/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 Development cost for retail 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. The average sales prices range from €1,500/sqm to €2,000/sqm. Prime rents - Novi Sad Type High street
Location
euro/m2/month
Trend
Zmaj Jovina
30-50
Decreasing
Other
City center
20-30
Decreasing
Other
Periphery
5-10
decreasing
SC
15
Shopping centers galleries and retail parks-existing Building
Location
Size
Nork
City center
8,000
Bazar
City center
11, 000
Developer Aleksandar Gradnja Delta Real Estate
SERBIA • October 2010
7
Οικονομικό Novi Sad Περιβάλλον
RESIDENTIAL MARKET THE CURRENT PERIOD, the most attractive areas that concentrate the developers’ interest remain the city center without pedestrian streets and the municipalities of Grbavica and Liman. The average development cost ranges between €450/sqm - €500/sqm. 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
City center
50,000
Aleksandar Gradnja
Developer
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 • October 2010
8
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 market share 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 operated during 2008 and 2009. Additional office space of 2,600m2 GLA are estimated to ed as Office be offered within mixed-use development TPC Srbija, also referred n zone. The tower. Both projects are located within the Nis’s main pedestrian rket belong companies which showed greater mobility in the domestic market mainly to the fields of financial, mobile and network services and real estate proximately consultancy. Also within shopping center Forum there will be approximately 1,800m2 of office space that will be rented out at 10eur/m2. Office space prices in Nis Year
Average Sales Prices (€/m2)
Average Rent Prices (€/m2) €/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
2009
700-1500
7-144
2010
700-1500
7-100
SERBIA • October 2010
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Οικονομικό Περιβάλλον Nis
RETAIL MARKET
HOTEL MARKET
THE MAIN SUBMARKET in Nis is the pedestrian Pobedina street the popular shopping mall called Kalca, with average rent ranging from €30-€40/sqm. In
HOTELS NIS
high retail streets Rental levels range between €25-€45/sqm. In secondary
Name
submarkets the average rental levels range between euro €10-€20/sq.m. The
My Place
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average development cost remains stable at €600-€800/sq.m
Aleksandar
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Category
Ambasador
***
Shopping centers galleries and retail parks-existing - Nis
Nais
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Building
*** ***
Location
Size
Developer
Niski Cvet
City Center
30,000
City of Nis
Panorama Lux
Tempo
City entry
10,000
Delta Invest
Merkator
City center
32,000
Merkator
Highway- city entry
9,900
Metro
Kalca
Metro
Shopping centers galleries and retail parks-pipeline - Nis Building
Location
Size
Developer
Forum
Center
7,500
RK Nis doo
RKB
Center
6,000
Verano Invest/ Marphin group
Type of Space
Average rental price €/sqm
Average sales price €/sqm
15-19
-
Shopping centers
RESIDENTIAL MARKET NIS RESIDENTIAL SALE prices had a rising trend in the recent years, mainly due to the growing demand in residential sector. The city center, Knjazevacka Jug and Mokranjceva Streets remain the prime locations for high-end residential sale and lease.
Residential (pipeline) Nis Building Mozaik Residential Complex
Location
Size
Developer
Downtown
21 000
DV Mozaik Inzenjering
Residential sales price-Nis Location
Average price eur/m2
Center
900-1200
Calije
700-800
Palilula
800-1000
Pantelej
700-800
Duvaniste
800-1000
Mokranjceva Street
650-900
Bulevar Nemanjica Street
700-900
SERBIA • October 2010 10
Οικονομικό Περιβάλλον
Kragujevac OFFICE SPACE THE CITY OF KRAGUJEVAC experienced increasing developments in the real estate sector over the past few years. 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 5-8 eur/sqm and around €1,000/sq.m. for sale.
RETAIL SPACE LARGE INVESTORS SUCH AS PLAZA CENTERS, Tempo, Idea, etc are interested in investing to that area. There are worth mentioned the Bubanj Lake construction that will consist of two parts including services, public buildings, corporate buildings and parks and the under construction Plaza Centers project totaling 30,000sqm of retail space Retail space- existing – Kragujevac Building
Location
Size
Developer
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
Metro Cash and Carry
Retail space- under construction – Kragujevac Building
Location
Size
Developer
Kragujevac Plaza
Kragujevac
65,000
Plaza Centers
Delta park
Kragujevac
10,000
Delta Invest
Rental levels for retail space in Kragujevac Type Pedestrian zone
Location
Average euro/m2/month
Dr. Zorana Djindjica
20
Kragujevac
5-10
Other suburbs
RESIDENTIAL SPACE IN KRAGUJEVAC the demand levels are higher that the supply levels and the prices are driving up. The largest project in Kragujevac remains the Stara Radnicka kolonija with 90 apartments that are completed and other 90 apartments in the pipeline. Type
Location
Euro/sqm
New buildings
City center
800-1200
Old buildings
City center
700-900
New buildings
Suburbs
500-700
Old buildings
Suburbs
500-600
SERBIA • October 2010 11
Οικονομικό Contact Information Περιβάλλον
MAP OF SERBIA
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BELGRADE ,3"(6+&7"$ /*4
EFG Property Services d.o.o. Belgrade 10, Vuka Karadzica Str, 11000 Belgrade, Serbia, tel: +381 11 3207 580
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