Real Estate Serbia 2022

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Contents EXCHANGE RATE 06 MAINTAINS STABILITY IN PROPERTY MARKET

WE IN THE GOLDEN 12 ARE AGE OF REAL ESTATE? NEWS & VIEWS

DEJAN MOLNAR, PROFESSOR AT BELGRADE FACULTY OF ECONOMICS

DESIGN 20 INTERIOR TRENDS IN 2022

CHOICE ON THE 15 FIRST MARKET

INTERIOR DESIGN

TIJANA ELEZ, FINANCE DIRECTOR AT MPC PROPERTIES

A BELGRADE 09 WATERFRONT APARTMENT = A SECURE

INVESTMENT IN THE FUTURE BELGRADE WATERFRONT

FOR THE MOST 10 READY COMPLEX PROJECTS PETAR SIMOVIĆ, ARCHITECT AND GENERAL MANAGER, AND MARIJA SIMOVIĆ, ARCHITECT AND TECHNICAL DIRECTOR, ARCHITECTURAL AND ENGINEERING STUDIO ARIS D.O.O. KRAGUJEVAC

EDITOR IN CHIEF: Neda Lukić n.lukic@aim.rs ART DIRECTOR: Branislav Ninković b.ninkovic@aim.rs CONTRIBUTORS: Rob Dugdale, Maja Vukadinović, Mirjana Jovanović,

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NO LIMITS FOR A 16 PROFESSIONAL AND DEDICATED TEAM

ANA ŠUMAN, ARCHITECT, HEAD OF THE DEPARTMENT FOR URBAN AND SPATIAL PLANNING, NADICA DAVIDOVIĆ, ARCHITECT, HEAD OF THE DEPARTMENT FOR ARCHITECTURAL DESIGN AND SAŠA KOSTIĆ, ARCHITECT, HEAD OF THE DEPARTMENT FOR PROJECT MANAGEMENT AT THE ARCHITECTURAL STUDIO BUREAU CUBE PARTNERS

Miša Brkić, Ljubica Gojgić Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić, Miloš Belčević PHOTOS: Zoran Petrović COPY EDITOR: Mark Pullen

TRANSLATION & EDITING: PULLEN EDITORIAL HALIFAX SALES MANAGERS: Biljana Dević, b.devic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs

REACHING THE HIGHEST 19 STANDARDS OF OFFICES IN SERBIA VESNA KRIZMANIĆ, ARCHITECT, ARCHINOVA ARCHITECTURE

OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs

PUBLISHER: Ivan Novčić i.novcic@aim.rs

FINANCE: Dragana Skrobonja finance@aim.rs

DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

EXECUTIVE DIRECTOR: Maja Vidaković m.vidakovic@aim.rs

REAL ESTATE SERBIA 2022 PRINTING: Rotografika d.o.o.

Segedinski put 72, Subotica

CorD is published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 E-mail: office@aim.rs office@cordmagazine.com www.cordmagazine.com www.aim.rs ISSN no: 1451-7833 All rights reserved alliance international media 2022

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INTERVIEW

DEJAN MOLNAR, PROFESSOR AT THE BELGRADE FACULTY OF ECONOMICS

Exchange Rate Maintains Stability In Property Market Unless there are large fluctuations in the exchange rate and as long as people experience that their standard of living is rising, and while banks guided by the same logic expand their mortgage portfolios, the current trends in the real estate market will continue. The million-dollar question is: when will that connection begin to slip?

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nflation, the possibility that banks will raise the price of mortgages, the future dinar-euro ratio, people’s purchasing power and the conflict in Ukraine bringing new residents to Serbia are just some of the many elements shaping prices in the country’s property market at the moment. Will the growth of property prices that we have been seeing since 2013 and the growth in the value of approved housing loans continue, or are we facing the bursting of a ‘real estate bubble’? Professor Dejan Molnar of the Belgrade Faculty of Economics analyses these trends and possible scenarios.

In Serbia, we can remember not so long ago when the demand for apartments was so low that owners were happy to find tenants at all, and that now with the story of the arrival of Russians and Ukrainians, apartment rents are said to be growing.

In your opinion, what awaits current and future apartment owners and those who rent them in the next year or two?

In our country, when people earn more (or feel they do), they usually decide to buy property. It is also important that rents have grown in recent years, so in conditions of low interest rates, a monthly mortgage instalment is lower than rent, which leads many to decide to take out a mortgage and start repaying their own square metres instead of renting them. Trends in the apartment rental market will above all be determined by the level of people’s living standards and their loan conditions. Expressed in euros, the 6 |

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INTEREST

DEMAND

TURNAROUND

Any increase in mortgage interest rates would reduce the circle of those who can use bank loans to buy a home

Just when I think that this market is oversaturated and that there are too many shopping centres, I am contradicted (even surprised) by the fact that shopping centres in Belgrade and Novi Sad are almost always full

Trends in the apartment rental market will above all be determined by the level of people’s living standards and the conditions under which they can borrow

average salary was about 50% higher in 2021 (553 euros) than in 2014 (368 euros). At the same time, banks’ average interest rate on newly approved mortgages in January 2022 had almost halved (2.56%) compared to the same month in 2014 (4.87%). This means that for a 20-year mortgage of 50,000 euros, the monthly annuity in 2014 was around 323 euros, up to 88% of the average salary, while today

treat it, so their mortgage portfolios expand.

The value of private mortgages increased by over 73% in the period 2014-2021 – from 2.67 to 4.56 billion euros.

in Germany 12%, in Croatia 9%, in Slovakia 8%, in France 7.1%, in Romania 5.9%, and in Italy and Spain 4.2%. Apartment prices in Serbia have been growing steadily since 2013.

The average price of a square metre in a new building was over 32% higher in 2021 (1,510 euros) than in 2014 (1,140 euros).

Any increase in mortgage interest rates would reduce the circle of those who can take bank loans to buy a home. Each additional percentage point in the interest rate leaves one group of potential buyers ‘out of play’.

This could lead to lower demand and falling prices. New waves of corona virus pandemic would probably cause new interruptions in production and a recession, leading to reduced demand for property. This will affect so-called self-stimulating mechanisms that result from people’s expectations. Today, when prices are rising, buyers hurry to buy property today to avoid paying more tomorrow. Expectation that prices will be even higher creates additional demand that pushes prices upwards. When prices stop rising and start falling, buyers will refrain from buying because they expect prices to fall further, which will reduce demand. At the same time and for the same reasons, sellers will want to sell property as soon as possible and ‘catch the last train’ with high prices.

Economists believe that the real estate market has long been overvalued and will sooner or later fall. Does our market follow what is happening on the ‘big markets’ of

Although the price of a square metre of apartment increased by one third from 2014 to 2021, the amount of housing loans sold to individuals also increased. This is primarily due to the growth of average salaries in euros, falling interest rates and a stable dinar exchange rate against the euro the instalment for such a loan is around 265 euros or just 48% of the average salary. At the same time, the basic macroeconomic variable that ‘holds water’ here is the exchange rate, the value of the euro in relation to the dinar. The fact that we have had no major exchange rate fluctuations during the entire period actually makes people feel that their standard of living is growing. This is how banks

the USA and the EU, or does it have its own laws governing prices?

House and apartment prices in the EU had increased by an average of 9.2% in the third quarter of 2021 compared to the same period in 2020. This growth varied over member states: in the Czech Republic it was as much as 22%, in Estonia 17.3%, in the Netherlands 16.8%, in Austria and Slovenia 12.9%, in Hungary 12.6%,

As we are a nation that is aging and emigrating en masse, a non-expert asks who will live in these apartments? Is our relatively stable housing stock being redistributed between smaller places and towns that people are leaving towards Belgrade and Novi Sad, or are apartments being built with the idea that Serbia will also have an influx of people from other countries who for various reasons want to own property in Serbia?

Uncertainty and expectations of inflation make people with money invest everything they have in real estate. On the other hand, there is a continuous decline in the country’s population. Negative natural increase (more M AY

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INTERVIEW deaths than births) and physical outflow of the population (migration) make a synchronized contribution to this. In addition, we live in a country where children become independent and leave their parents’ homes relatively late.

The concurrence of these two trends (continuous decline in population and growth in the number of newly built apartments) raises certain questions.

In 2020, in as many as 19 out of a total of 25 administrative areas (districts), a higher number of emigrants than immigrants was recorded in Serbia. Apart from Belgrade (+4,866 inhabitants), a positive balance of migratory movements in 2020 was also achieved in Novi Sad (+1,572), Pančevo (+179), Subotica (+143) and Niš (+255). The towns from which people emigrated more than immigrated are more numerous: Sombor (-115), Vršac (-57), Kikinda (-159), Sremska Mitrovica (-13), Užice (-308), Valjevo (-112) , Sabac (-35), Cacak (-17), Krusevac (-141), Kraljevo (-227), Kragujevac (-42), Leskovac (-287), Vranje (-263), Smederevo (-330), Zajecar (-87), Pirot (-93), etc.

Just as rural areas and other towns in the country (except Belgrade and Novi Sad) are ‘empty’, so there is a kind of division within urban areas - young people move to new apartments and parts of the city where housing is ‘flourishing’, while other parts of these cities remain abandoned and slowly die out.

On the one hand, primarily in Belgrade and now in various parts of Serbia with well-preserved nature, we see a wave of construction of luxury buildings, large

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surfaces with fenced green areas and common facilities exclusively intended only for residents, or weekend resorts. Is this a marginal phenomenon or does the structure of new residential buildings tell of some new trends in our market?

I think that this segment of the property market is intended for a narrow circle of more solvent buyers or users of these, for our conditions exclusive, housing estates.

Climatologists, urban planners, architects, ecologists say that many cities have long since switched to combining blue and green structures that should enable cities to more easily resist pollution and rising temperatures. In contrast, in Belgrade and

question of return on investment – high quality modern installations are more expensive to build. Finally, there is the ability to pay (the living standards) of buyers and their willingness to set aside money for such housing.

There are smart buildings on the market, but the number of those who can afford such an environment is limited.

Along with new apartments, facilities are being built that make an area comfortable to live in, from supermarkets to shopping malls. What is happening in this market?

Is it saturated?

New settlements and the people who live in them also require appropriate content (especially if it is a younger population, families

Just as rural areas and other towns in the country (except Belgrade and Novi Sad) are ‘empty’, so there is a kind of division within urban areas - young people move to new apartments and parts of the city where housing is ‘flourishing’, while other parts of these cities remain abandoned and slowly die out larger cities in Serbia, we see the pouring of concrete on all surfaces that can be used for construction. What needs to happen on the domestic real estate market to see smart cities in Serbia?

This issue is related to both supply and demand. When it comes to supply, this is first of all about urban planning and appropriate regulations and standards. Secondly, it is a

with small children, etc.). The modern way of life ‘dictates’ appropriate models for spending money and free time. We see that shopping malls are quite well visited in larger cities. Just when I think that this market is oversaturated and that there are too many shopping centres, I am contradicted (even surprised) by the fact that shopping centres in Belgrade and Novi Sad are almost always full.

BUSINESS

A Belgrade Waterfront Apartment =

A Secure Investment In The Future

The Serbian real estate market is expanding constantly, thus according to a report of the Republic Geodetic Authority, the number of real estate sales in 2021 was up 28% on the recordbreaking year of 2020. Real estate agents note that location remains the main criterion influencing the choice of living space, followed by construction quality, number of floors and good infrastructure.

All-encompassing residential quarters are becoming increasingly popular, both around the world and in our country, simply because the modern buyer isn’t only choosing their own “four walls”, but also the entire lifestyle that’s applied by a particular residential space

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n attractive location with unique views and the highest quality construction, but also excellent connectivity to other parts of the city, represent just some of the elements that distinguish Belgrade Waterfront on the real estate market, positioning it as the most desirable residential destination.

According to data from the real estate cadastre, more than half of all buyers of new builds in Belgrade have opted for an apartment within the scope of this project. Moreover, according to the claims of real estate agents, Belgrade Waterfront’s apartments are the quickest to receive rental tenants. Investing in an apartment in this most modern quarter of the capital, located on the bank of the Sava, represent a secure long-term investment, regardless of whether you buy it for your own housing or to rent. Thanks to housing loans created specifically for Belgrade Waterfront, potential residents also have the opportunity to apply for a bank loan at an early stage of construction, with monthly payment rates of as little as 499 euros. Another option is an interest-free loan in seven instalments pegged to the project’s construction phases.

Apart from top-quality construction in all phases and the use of the latest materials, apartments are characterised by their outstanding functionality and comfort, ample natural light, impressive views, spaciousness, elegant lobbies with a reception area and security on the ground floor of each building, underground parking and landscaped inner courtyards for residents Seven buildings with a total of 1,500 apartments have so far been completed in the Belgrade Waterfront, while the sale of the jubilee 4,000th apartment was celebrated during spring. And what awaits residents of this all-encompassing neighbourhood?

Apart from top-quality construction in all phases and the use of the latest materials, apartments are characterised by their outstanding functionality and comfort, ample natural light, impressive views, spaciousness, elegant lobbies with a reception area and security on the ground floor of each building, underground parking and landscaped inner courtyards for residents. But that’s just the start of the benefits of living in Belgrade Waterfront. Whichever building you choose, you will find shops, cafes and restaurants in the building itself, while kindergartens, schools, the spacious Sava Park with its numerous possibilities for recreation and relaxation, as well as the attractive Sava Promenada, are all never more than a few minutes’ walk from your doorstep.

Shopping at more than 200 stores of renowned international and domestic brands, lunch or dinner at restaurants overlooking the river, the latest blockbusters with IMAX technology, and endless fun at the country’s largest trampoline, all await you at the Galerija.

Works are being finalised on the façade of Kula Belgrade, representing the crowning glory of this entire project and a new symbol of the Serbian capital. This 168-metre-tall masterpiece of architecture will house a St. Regis hotel and The Residences at The St. Regis Belgrade. The arrival of this prestigious brand, which forms part of the portfolio of the famous Marriott International hotel and residential chain, places Belgrade on the map of the very carefully selected destinations in which St. Regis operates. At the same time, the opening of The Residences at St. Regis Belgrade will raise housing standards to a level not previously reached – not only in Serbia, but across this part of Europe.

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PETAR SIMOVIĆ, ARCHITECT AND GENERAL MANAGER, AND MARIJA SIMOVIĆ, ARCHITECT AND TECHNICAL DIRECTOR, ARCHITECTURAL AND ENGINEERING STUDIO ARIS D.O.O. KRAGUJEVAC

Ready For The Most Complex Projects ARIS is a relatively young bureau that was founded in 2016 as a partnership between engineers who had already worked together for many years. The studio is successfully engaged in design, supervision, project management and consulting in the field of construction

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e have correctly and at the right time dimensioned and structured a company that can respond to such challenging and complex project demands. There are above all large complexes in Kragujevac for clients like Tesla Palace, Euro Motus Real Estate, Delta Real Estate, JDM Real Estate - says the Simović tandem

How did you profile yourself in the industry and how did the development of your design office go?

Petar: The idea of ARIS from the start was to position it as a reliable partner for design and all the other activities in design and engineering in Kragujevac and beyond. We recognised a lack of local quality service, while Kragujevac has experienced a kind of expansion and development in the last ten years, so it was logical to focus on narrow specialisation.

You have a brilliant team of experienced professionals that you have been working with for years? Without their expertise, understanding and complementarity, you wouldn’t be so successful?

Marija: That’s true and we saw the first five years of the company’s development as a period to profile our services, so we specialised ARIS as a bureau that provides quality service in architectural and construction design, with permanent, high quality external associates necessary to complete the documentation so we can provide a complete service.

We have invested a lot of time and effort in mastering and forming knowhow, especially for coordinating projects on a small scale through large and varied typologies. So it is very important to understand all the specifics 10 |

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It is important to understand all the specifics of the different phases of a project so that the final product is satisfying to both clients and ourselves as designers of the different phases of a project so that the final product is satisfying to both the client and ourselves as designers.

Serbia is seeing building more than ever before, which has its downsides - the chaos of lay and ad hoc architecture. Can this be stopped?

Marija: We think that the regulations that are on their way to be integrated with the EU’s have almost stopped lay architecture. People became aware that permission was needed

to build something, so a culture of hiring an architect was established so that at least the bureaucratic part would be respected. In that sense, it has already been taken care of to some extent, but that is the only thing that is right.

And ad hoc architecture, if we define it as something that is designed quickly and without too much attention to the importance that architecture can have for users and the immediate and wider environment, it is present and is initiated by the speed required to spend certain funds or carry out intentions. The only way to

stop this is through education, not only education in terms of knowing the importance that architecture can have in everyday life, but also in economic, environmental and social terms, in order to see the benefits of careful planning.

Has the fact that investors have been asking and deciding about everything for the last 20 years done enormous damage?

Is Kragujevac one of those cities?

Petar: Stigmatisation of investors through the term investor architecture is a very simple approach to a complex phenomenon. It is quite clear that investors are building for the market, and the market is made up of people, and human expectations from functionality to the aesthetics of space are conditioned by personal and group culture. And changing culture is a slow process that eludes perception.

We have some good experience with investors, because we cooperate with them, we try to understand them and slightly change their perception and attitude towards space.

However, if we analyse the current situation in Kragujevac and Belgrade in more detail, as far as our experience goes, the situation is not so bad at all and has a positive trend. Of course, ‘Parisians’ are still sprouting here and there, but it is impossible and unhealthy to regulate public aesthetics. It must be a matter of evolution. In the end, a more detailed analysis of the time before investor urbanism shows it was also full of omissions and mediocre design and urban solutions, but the past always looks much better than the present.

Do you think that it would be better for the development of the city if there were serious public architectural and urban competitions with the best solutions chosen?

Marija: We are absolutely in favour of a the institution of competition. A choice is good, which is also shown by the fact that private investors sometimes decide to organise internal competitions to be sure they choose the best option for themselves. Public competitions are mostly absent due to the slowness of the whole process and impatience for spending funds. If things were viewed in the long run, there would probably be more interest in organising them.

However, we must note that in the last two years, several interesting competitions have been organised in Serbia and that quality solu-

Investors build for the market, the market is made of people, and human expectations from functionality to the aesthetics of space are conditioned by personal and group culture tions have been chosen. We hope that they will be realised, because that would completely confirm the institution of the competition and lead to greater interest in society.

Although you have completed many buildings, large in size and budget, are there some that stand out, some that you are especially proud of?

Marija: As architects, we started working together on small scale projects of different typologies, from housing to business in a small studio (Studio Simović) that has grown into ARIS. In that period of transition from independent work to a partnership company, we made several interesting miniature residential buildings for which we won prizes and were nominated for prestigious European awards (N1 Housing, N8 Housing), with which we actually presented our architectural vision of transforming the urban environment in Kragujevac.

What are you currently engaged in? Do you have any major projects planned for the next period?

Petar: Right now we are in the big scale phase, mostly residential and business complexes, which is very challenging and implies a completely different logic and design approach.

We have correctly and at the right time dimensioned and structured a company that can respond to such challenging and complex project demands. There are primarily large complexes in Kragujevac for clients such as Tesla Palace, Euro Motus Real Estate, Delta Real Estate, JDM Real Estate. Kragujevac is experiencing a serious expansion and as native citizens of Kragujevac we are very happy to have the opportunity to participate in defining new parts of the city. And we hope that we will be able to expand the experience we will gain into the whole region, which is our long-term goal.

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NEWS & VIEWS

Are We In The Golden Age Of Real Estate?

There are numerous factors contributing to the increased interest in buying real estate and the rising prices of both housing and commercial space, from low interest rates and favourable mortgage deals, via large amounts of “ready cash” in circulation, all the way to changes on the world market. Despite expectations that prices and demand would stagnate over the course of this year, real estate experts are predicting that this will have to wait until at least mid-2023.

How Much Square Footage Can Be Bought For A Million Dollars?

Overlooking the fact that almost none of us ordinary little people will ever have a million dollars to buy real estate, analysis conducted by global real estate consultants Knight Frank shows how much square footage can be bought for that amount. Led by the notion “location is everything”, they set off from Monaco, where a million dollars will only buy you 15 square metres of living space. Only six square metres more, i.e., 21, can be bought for that amount in Hong Kong, which ranks it second, while the UK capital of London comes third because there you can buy a “whopping” 31 square metres for a million dollars.

This amount can buy you 33 square metres in New York, 35 square metres in Singapore, 37 square metres in Geneva, 41 square metres in Sydney, and 42 square metres in Shanghai, Paris and Los Angeles. You can find a 56-square-metre apartment in Beijing for a million dollars, 64 sqm in Tokyo, 73 sqm in Berlin, 77 sqm in Miami, 84 sqm in Melbourne, 106 sqm in Madrid, 108 sqm in Mumbai, and as much as 137 sqm in Dubai, followed by Cape Town (220 sqm) and Sao Paulo (256 sqm).

Considering that the average price of residential property in Belgrade stands at around 2,000 euros, or 2,190 dollars, per square metre, a million dollars could buy you a 456 sqm property in the Serbian capital. However, calculating on the basis of the price of the most expensive square metre in the city, which stands at around 10,000 euros, Belgrade ranks somewhere between Melbourne and Madrid.

Source: knightfrank.com 12 |

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London, Capital Of Microflats

The ever-growing trend of people relocating en masse from small towns to major cities is creating a growing shortage of housing and demand for miniature apartments. Microflats are essentially mini studio apartments or tiny bedsit residences that have a miniature living room that doubles as a bedroom, a mini kitchen and a tiny bathroom. They are ideal for people living alone, usually students or single workers, though there are also variations encompassing 10 square metres that can accommodate two. They are generally equipped with fold-down beds that are stored vertically against a wall when not in use, as well as folding desks or tables.

As many as 8,000 new microflats were built in the UK in 2016 alone, with the world’s largest microflat residential building, containing as many as 546 residences, located in London. This building also includes tiny apartments covering a surface area of nine to 12 square metres that utilise a shared kitchenette and bathroom. Each floor includes a larger kitchen with a dining table, which is used by between 30 and 70 tenants.

Prices Won’t Start Falling Anytime Soon The current situation doesn’t indicate that real estate prices in Serbia will fall in the near future, given - among other things - the growing number of Russian and Ukrainian citizens opting to rent and buy apartments in Serbia. But urban apartments aren’t the only properties exposed to rising prices, as summer houses, building plots and garages are also becoming more expensive...

The pandemic has led to increased demand for summer houses and building plots on the outskirts of larger cities, primarily Belgrade, Novi Sad, Niš and Kragujevac, leading to prices per acre having multiplied several times. In terms of popularity, demand and price, Avala, Kosmaj and Fruška Gora stand out, as do settlements along the banks of the Danube and the Sava, with no indication of a return to the previous situation.

Over the last few years, during which it has become all but impossible to find a parking space in Belgrade, the prices of garages in the city centre area have reached the value of a small apartment in a provincial town or a full rural homestead. Buying a garage as an investment has proven to be the best in the Belgrade municipalities of Vračar and New Belgrade, where ever more residential and commercial buildings are emerging. According to estate agents, a city centre apartment is a good investment today, but buying a garage in the city centre or in New Belgrade is an even better investment.

Dear, Dearer, Dearest The most expensive residential square metre sold in Serbia last year was in the Belgrade Waterfront complex, in the Savski Venac municipality, and cost €10,068. The apartment encompasses 144 square metres, meaning that the buyer spent just over €1,449,000 for this property. The city’s most expensive garage space was also sold in the Belgrade Waterfront quarter and cost €40,000. According to the Republic Geodetic Authority, the highest price per square metre in an older building was achieved in Vračar, at a price of €4,615 per square metre for a 26m2 flat.

The dearest city apartment sold in 2021 is located in New Belgrade, covers an area of 399 square metres and cost the new owner €1,888,614. Belgrade’s most expensive house sold in 2021 is located in the Savski Venac municipality and cost five million euros.

Source: Euronews M AY

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NEWS & VIEWS

Smart Offices Will Own The Future The way we buy, work, socialise and communicate with friends, colleagues and business partners has been viewed differently since the Covid-19 pandemic hit the whole world two years ago. Firstly, thanks to quarantines and lockdowns, we discovered what it is like to work from home, then we learned how to keep our distance, and we ultimately grasped how we can live with the virus. For employers, the health of workers become a priority, but this isn’t only restricted to the period of the pandemic and is set to become the standard.

Future business premises must be dynamic and flexible, with digital tools applied to the max, as they are set to play a key role in the offices of this new age. These smart offices will reduce the need for physical touch to a minimum, thus ensuring the maximum protection of employees’ health, while various sensors that register the presence of people in a space will be used to increase the flow of fresh air.

The preferred business properties will be those located in close proximity to parks and other areas of greenery, but also commercial premises situated beside rivers or recreation and relaxation zones.

Mortgage Interest Rates On The Rise Fixed interest rates on 30-year mortgages in the U.S. have reached 5% this year for the first time since 2011, and professionals from the banking and real estate sectors warn that interest rates could continue to rise.

“Most buyers base their price range on how much they can afford every month and mortgage payments go up for a given loan size as rates increase. As a result, the increase in mortgage rates means that homebuyers will have to adjust their expectations, and begin shopping in lower price ranges. We might see less competition for higher priced homes and more competition for lower-priced homes,” says Holden Lewis, a home and mortgage expert at U.S.-based personal finance company NerdWallet.

Source: marketwatch.com

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TIJANA ELEZ, FINANCE DIRECTOR AT MPC PROPERTIES BUSINESS

First Choice On The Market MPC Properties was already a market leader more than 10 years ago, when its portfolio included significantly fewer assets, and it’s also a leader today, when it has six retail centres and six premium office buildings in its portfolio.

Market leader is not only about size and dominance, but it is more about how relevant the products are for the customers

that do imply a higher risk, but for return bring significantly higher returns. The crucial factor of success, in this case, is industry knowhow, a network of partners and tenants, familiarity with financial trends and portfolio strength.

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elgrade, along with Serbia as a whole, is becoming an increasingly serious destination for investments in various types of real estate, while the actual market is slowly profiling itself. MPC Properties’ strategy, according to the company itself, has complete clarity.

Judging by your portfolio, we can conclude that MPC Properties will be a key player when it comes to investment and development for a long time to come. What will your next investment be?

Our portfolio gives us strength and strategic positioning in the market, but above all, our expertise and know-how, makes difference. We know why we are investing.

We make long-term projections and invest more in fields of sustainable construction of our assets than the competition, our assets have the highest LEED and BREAM certificates. We also have strategic partnerships with all global brands, but above all we are very well experienced with the dynamics of this market. This fact is also confirmed by the full leasing of the business buildings UŠĆE Tower Two and Navigator Business Centre 2, as well as the BEO shopping centre, which opened in 2020, at the time of the pandemic.

We’ve strengthened our portfolio with the purchase of Delta City, and in the coming

Our portfolio thus gives us strength and stability, while our knowhow and expertise confirm that we know how to choose the right project, as we know when and why we invest period we’ll focus on additionally strengthening our office portfolio in the segment of A Class buildings in prime Belgrade locations.

There has always been a real estate industry rule that these are the only secure investments? Is that still the case?

When it comes to real estate industry, investing in residential is the first association for secure investment. These are relatively stable investments that are exposed to less risk, but also lower returns. However, every investment implies a certain risk.

More complex investments, such as retail centres and office buildings, are properties

In your opinion, what would represent the best investment at the moment and has the growth of the online market influenced a different framework?

The pandemic was an ideal opportunity to demonstrate the strength of the online market, but the turnaround has not happened. We’ve just gained a more complex market, where the online domain is still in the consolidation phase, but the offline market remains a priority and continues to have great potential for further development. However, the offline market is also experiencing a transformation of its own, which is moving in the direction of creating more content-rich shopping destinations and improving the user experience. The consumer is today at the heart of every business more than ever before, and those who best respond to the new needs of consumers, are the ones that can expect to endure.

Does the local market have enough clients with the payment power to keep pace with the high leasing prices that seem to be set to continue rising?

MPC invests in high-quality office buildings, class A+, which address the needs of major international companies that think on long-term basis and can recognise the importance of higher initial investments and the advantages that brings to their employees and their actual business.

Given that we’re market pioneers in the retail segment, we select shopping destinations that are in the city’s busiest places and possess all the essential infrastructure for brand development. Such an approach has enabled us to gain the reputation we have today as the first choice on the market.

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ANA ŠUMAN, ARCHITECT, HEAD OF THE DEPARTMENT FOR URBAN AND SPATIAL PLANNING, NADICA DAVIDOVIĆ, ARCHITECT, HEAD OF THE DEPARTMENT FOR ARCHITECTURAL DESIGN AND SAŠA KOSTIĆ, ARCHITECT, HEAD OF THE DEPARTMENT FOR PROJECT MANAGEMENT AT THE ARCHITECTURAL STUDIO BUREAU CUBE PARTNERS

No Limits For A Professional And Dedicated Team Besides expertise and professionalism, architectural studio Bureau Cube Partners bases its work and enviable results on commitment to the interests and needs of the client, knowledge of local opportunities and global trends and a willingness to see perspectives and create new opportunities

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ach year, the team of this respectable Belgrade architectural studio is expanding their portfolio and list of locations where they have been hired as designer, especially with their important participation in drafting the project documentation for the reconstruction and extension of the pearl of the Serbian architectural scene, the SANU Palace.

How tcan we establish a balance between a modern way of life in the city and the rich heritage without which Belgrade would not be Belgrade? Can history, tradition and the demands of modern man be successfully combined?

A.Š. During the planning elaboration of the defined scope, which consists of the city or certain parts of it, a studious analysis and confirmation of the existing cultural, historical and natural values is the initial procedure by which a sufficient perception and a detailed familiarity is formed in various aspects with the space that is the subject of the planning document.

As the city is a living organism that changes and develops every day, one should be very careful about the existing values, the potential values that cry out to be iluminated, and not by just any criteria, and the conditions and needs for development, so as to create a high quality planning solution as a basis for 16 |

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The integration of new, modern buildings and modern areas of the city with a rich heritage is both a challenge and a responsibility the area covered by the planning document to be developed in the coming years. Retaining valuable buildings and environments is very important, but it is also very important to respond to modern requirements for the development and improvement of the city

from architectural and urbanistic viewpoints.

The integration of new, modern buildings with modern city areas with a rich heritage is both a challenge and a responsibility. In numerous examples in global metropolises, we notice that one of their qualities is the

successful realisation of the intertwining of historical heritage and applied modern tendencies in architecture and urbanism.

Can the existing infrastructure withstand this pace of construction of new facilities and what does Belgrade need most at the moment?

A.Š. For the development of the city or some part of it, the condition is the preparation of a planning document which will, among other things, define other and public purposes, capacities and conditions for future construction, infrastructure capacities and conditions for improving and building infrastructure. For the unhindered functioning of the city, it is necessary to implement planning solutions, primarily in those areas related to the construction of roads, public utility infrastructure, edifices intended for education and facilities intended for social and health care. Most of the current problems in the functioning of the city are the result of unrealised planning solutions, illegal construction, unbuilt buildings or parts of buildings intended for stationary traffic.

It is thought that in ten years, many parts of the capital, even New Belgrade, will be left without sites for new facilities. Where and how will the city expand then?

A. Š. The development of the city is a specific process that happens before us every day.

In relation to the actual increase in demand for new sites and the present demographic expansion in the city of Belgrade, a more balanced development of the city is occurring with the activation of some, almost unjustly, neglected parts of Belgrade. In recent years, the expansion of the city has been noticeable in all directions. Locations that were completely unattractive ten years ago are crying out to become important points in the city. For an appropriate expansion of the city, the most important thing is to fulfill the basic condition, which is the preparation of planning documentation and the subsequent realisation of the planning solutions.

How much do new materials and the most modern technologies make it easier for you and your colleagues to realise all your visions, to give the project a unique, author’s stamp, to express all your creativity ...?

We solve challenging situations with an analytical approach, persistent elaboration and presentation of variant solutions in relation to the client’s requirements N. D. Technological development accompanied by innovative processes has definitely contributed to a clearly visible transformation in the realisation of works of modern architecture, in such a way that the concept, which we primarily transfer to paper through sketches, later without major difficulties, precisely with these same or almost the same formal, functional and aesthetic characteristics, in each of the following phases may be examined in a focused manner, recognising the referential value and effectiveness of the final product. In consequence, we also often provide through the design process appropriate professional, technical and technological support to fellow engineers in various reference disciplines, all in order to become acquainted with new materials, their characteristics and ways in which they can be utilised.

In upgrading the knowledge that is primarily associated with the application of modern technological solutions, both in the field of architectural design and in the subsequent technological process of executing works, our team has, on almost every one of the many projects in which we are currently engaged, precisely an immediate opportunity, through its follow-up, to dedicate itself to it.

This applies to all phases of project implementation in which our team, following the architectural detail from its genesis to its implementation, is also dedicated to creating a realistic picture of the rational development of conceptual guidelines active in the emergence of new ideas, which are essentially a strong support for a legible and recognisable authorial approach, but also as such, critically exposed, both to the professional public and to the end users.

All major cities in Serbia, not only Belgrade, have become huge building sites, which unfortunately in many cases has a negative impact on aesthetics, functionality, quality ...? How do you fight that?

N. D. As the requirements of potential users, primarily in the field of residential construction, are now at the highest of levels, so the market itself requires diversity in selection, resulting in the participation of both consultants in sales procedures and of cost management consultants and experts in the field of marketing, at practically all stages of the design process. In connection with this, inconsistent attitudes of participants in the design process often manifest themselves, sometimes even M AY

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BUSINESS in diametrical opposition to each other, and all in relation to views, interpretations and glorification of expectations.

At such times we solve circumstances and challenging situations with an analytical approach, persistent and almost constant elaboration and presentation of variant solutions in relation to the requirements emphasised by the clients. We do all this in order to be able to successfully incorporate common objectives in the most efficient way into an architectural solution that will not have shortcomings in terms of design, form, art, functional organisation and overall quality that a building must simply possess, at least in its outlines.

Among other things, your bureau is entrusted with drafting a project for the reconstruction and extension of the SANU Palace. How are preparations going for the works that are planned to be completed for the centenary of SANU 2024?

N. D. The reconstruction and extension of the SANU palace really is one of the most demanding and complex projects in which we are engaged, and where in addition to the process of reconstruction, adaptation and rehabilitation of the existing building, a very complex and authorially challenging intervention is designed in the atrium area of the palace, within which the future central motif of this representative building, embodied in a multifunctional concert hall, is functionally and formally incorporated.

The investment-technical documentation intended for the entire intervention is in its final phase, which means that the conceptual design has been completed, that the conceptual project has been completed and confirmed by the revising committee of the competent ministry, that the construction permit project has been completed and that the construction permit for reconstruction and extension is imminently expected. This creates conditions for the preparation of the beginning of the execution of works, whose completion is planned in the year in which the centenary of the construction of the SANU palace is to be celebrated.

Does the fact that your architectural bureau, in addition to architects, is accompanied by experts in various professions and specialties, enable you to effectively manage projects, regardless of the scope and type of work?

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Expertise, efficiency, a team and collegial relationship enable project management in our office to be successful, regardless of the type and scope of work and the deadlines S. K. Bureau Cube Partners primarily consists of a team of experts in the home discipline, architecture, including colleagues with enviable biographies, former professors, doctoral students and, I would say without false modesty, current and future important names in Serbian architecture with whom it is a great honour and pleasure to collaborate. Expertise, working efficiency, a team and collegial relationship unequivocally enables project management in ourofficetobesuccessful,regardlessofthetype and scope of work and the deadlines defined.

In addition to a high quality approach in solving architectural challenges, knowledge of local opportunities and processes and global trends has brought you a large number of clients. How did you keep them and motivate them to embark on new projects with you?

S. K. Our company is characterised by exceptionalcommitment,understandingofthemarket and the expressed needs of investors, and an understanding of the need to face and follow global architectural trends. I observe that the readiness for complex, often provocative, and at the same time challenging perceptions and the creation of new possibilities are almost always predetermined qualitative conditions

that investors naturally expect from the architectural team that accompanies them, which in our case they probably recognise.

In addition, I would like to emphasise the expertise and dedication of each individual in our team who is engaged in the design process, starting from understanding the idea, through recognising key points in the investment development cycle and synthesising elements that participate in creating a complete product, until its final realisation.

By participating in all phases of the project, your experts provide clients with additional security and guarantees that the work will be done flawlessly. Do you save them time?

S. K. Competence, rationality, creativity, sustainability, certainly synchronicity and cooperation in all disciplines, starting with architecture, are a prerequisite for design, and then all the following processes take place according to the given dynamics. But that is also equally a reason to consider all potential obstacles in the realisation in a timely manner, and to make savings in the estimated time of realisation of the entire cycle by timely resolution and prevent further extension of the planned deadlines.

VESNA KRIZMANIĆ, ARCHITECT, ARCHINOVA ARCHITECTURE BUSINESS Archinova Architecture is a company that specialises in the strategic design of workspaces and interdisciplinary models of workspace design, but first and foremost in the utilising of spatial office units to build a pleasant and healthy atmosphere and corporate culture

Reaching The Highest

Standards Of Offices In Serbia would change so quickly and that a pandemic would bring us new ways of doing business?

Changes to design methods of offices were obvious even before the pandemic, which only served to accelerate them. By orienting themselves towards the task at hand and the need to generate profit, as opposed to focusing on the place where they are based and work, many companies were able to digitalise and utilise virtual work platforms, and that technological wheel is spinning faster and won’t stop. In the process of designing and collaborating with an investor, we strive to strike a balance between physical workspace, virtual work and the building of a corporate culture and a sense of belonging.

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ersonnel, both individual employees and teams, need to be flexible and oriented towards the task at hand, and not the place.This doesn’t mean that office space must be condensed, but rather that it should be modified to represent a company’s base.

Your company deals in the design of workspaces. What does that actually entail?

It entails dealing with the architecture of offices and workspaces, but actually through different disciplines – firstly analysis of companies’ organisation and work processes, analysis of the digitalisation of operations and the “measure” of virtual and physical works. But we primarily deal with the sociological and psychological needs of employees – by participating in the building of a pleasant and healthy atmosphere and corporate culture through spatial parameters.

This is a team effort, and the architecture and interior of a workspace can use as a tools to realise those goals.

When you established Archinova five years ago, could you have imagined that things

Considering the new practise of working from home, do you think there’ll be a reduced need for traditional offices?

Hybrid work has created an opportunity for companies to engage the best experts anywhere in the world and to form multinational expertlevel teams that are flexible and task-oriented, rather than place-oriented. This doesn’t mean that office space must be condensed, but rather

that it should be modified from the traditional to a representation of a company’s base and a place where corporate values are initiated, as well as a place where employees are happy to come, meet and collaborate. Also, the greatest advantage of working from home is the travel time saved, but one of the new solutions could be the spatial diversification of workspaces.

What do you recommend when it comes to designing and developing new offices?

Developers and designers of new multi-tenant buildings can analyse new forms of organising office buildings, with the aim of optimising clients’ increased demand for flexibility (whether some spaces should be shared use; whether a need exists to develop new concepts like office hotel concepts, co-working concepts etc.), while the companies – led by their HR teams – analyse the optimal degree of hybrid work (in the office and from home) adapted to each area of activity independently. High-quality designers and architects, which Serbia has in abundance, are able to satisfy and exceed the highest standards and to design modern office space.

Design of Medigroup office in Sirius offices, Belgrade

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INTERIOR DESIGN

Interior Design Trends In 2022 For millennia, interior design trends have been used as aesthetic aids in our attempts to find some sort of inner peace: take the ancient Chinese art of feng shui, where spatial positioning corresponds to energy flow, or wabi sabi, the Japanese practise of embracing imperfections, or ancient Rome's fondness for using earth-tone colours and geometric patterns to mimic the harmony of nature

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here is more and more research showing the direct influence that our homes have, not only on our mood, but on our overall health and wellbeing. So, is it any wonder that in 2022 — our third consecutive year in a global pandemic — the top interior design trends are again focused on making us feel emotionally at ease?

And what, exactly, are our senses drawn to in 2022? Top interior designers have some ideas. For starters, several predict the rise of the enveloping, earthy colour of brown, displayed in fabrics like leather or even in terracotta walls (how Ancient Rome of us). Others see a spike in nature-inspired surfaces and accents — think marbles and mushroom shapes — while others say their clients can’t get enough soft, curvy furniture. Essentially, anything that feels warm, welcoming and cosy is in.

Then, there’s the pandemic reality that our homes have become the main settings of our lives: where we work, sleep, and socialise. Every corner, and every object we’re surrounded by, must serve some sort of purpose.

Meanwhile, some popular design choices of the past several years are falling to the wayside. Boucle’s moment, it seems, is over, as is the all-white minimalism that may look crisp, yet provides little visual comfort. The minimal look is at last warming up.

NATURE-INSPIRED SURFACES AND OBJECTS With more time spent indoors than ever before, we’re all seeking to strengthen our connection with nature. This has simultaneously inspired a resurgence in natural sur-

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NATURE-INSPIRED OBJECT

LE STYLE ANGLAIS-MEETS-CALIFORNIA APPROACH

faces—think stoneware, terracotta, marble, and travertine being used across the board from backsplashes to bathtubs, furniture, and decorative objects. The raw, porous, imperfect nature of these organic materials adds depth, soul, and visual intrigue while also mimicking the calming, restorative ambiance of the outdoors. This lure back to nature has also sparked an interest in large trees at home, from the elegant black olive to Southern magnolias.

It is refreshing to see a return to materialdriven applications—and it doesn’t seem to be cooling off. A desire for rich marbles, soft and organic materials, warmer tones and griege vs. white on walls, earthy elements like wood, stone, and clay—this is all so classic and refreshing as it brings life to a space.

SCULPTURAL AND CURVED FURNITURE A curved form is subconsciously read as safe, friendly and welcoming. With everyone feeling a bit precious, softer shapes and angles will still be a big trend in 2022 in furniture

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TOP 10 INTERIOR DESIGNERS

MIXED MATERIALS LIKE METAL, WOOD AND VELVET

as well as architecture.

VINTAGE AND SUSTAINABLE ACCENTS From a design standpoint, vintage is the protagonist of every room—it has the power to influence the storytelling and direction. Their patina brings a touchable texture and warmth to every space, not to mention a sacred sentimentality. But aside from their decorative propensity, these rare antiquities are stylishly sustainable.

By repurposing the old, the damaged, the jagged into something new, we’re reducing our footprint while bringing a rich sense of history and spirit into a space.

A MORE MODERN GRANDMILLENIAL Trends for 2022 include the embracing of floral patterns, a sort of 1940s updated chintz vibe, resplendent in the memory of Mario Buatta, but in more contemporary palettes. The ‘grandmillennial’ look that was slowly infiltrating influencers and taste 22 |

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ROOM IN SHADES

ARTWORK

CURVED SHAPES, TEXTURES, AND NATURE-INSPIRED INTERIORS ARE ALL TRENDS NAMED BY TOP INTERIOR DESIGNERS FOR 2022

makers in 2021 is now become more widespread, moving tastes back to a “more is more” look. But unlike our grandparents’ interiors, the feel is more curated with floral and damask-printed wallpapers becoming the backdrop for contemporary-shaped soft furnishings given an added touch of glamour with unexpected fringe and piping addition.

Mixing Materials and Design Styles The desire to have unique things is leading to an increase in mixing materials in furniture design. It is not uncommon to see case goods with wood, metal and stone elements all used in the same piece, to make them more unique and special.

There is a trend emerging that is reminiscent of the late ’80s and early ’90s. Two directions -One being very natural—white and creams, mixed with dark natural wood and washed linen textiles and black-andwhite photography. The other is dark and moody mixed with stainless steel, jovial multicolor schemes and color blocking.

Paying attention to the subtleties will be important in 2022!

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