Real Estate in Serbia 2019 by Diplomacy&Commerce magazine

REAL ESTATE IN SERBIA FO C U S O N

2019

R E A L E S TAT E I N S E R B I A

REAL ESTATE IN SERBIA

www.diplomacyandcommerce.rs

CONTENT

WE ARE CONTINUING TO REGULATE LEGISLATIVE FRAMEWORK RASIM LJAJIĆ Deputy Prime Minister of Serbia and Minister of Trade, Tourism and Telecommunications

ROOM FOR FURTHER DEVELOPMENT Intro

THE MARKET NEEDS TO BE FURTHER EDUCATED DAMIR BORIĆ President of Group of Real Estate Brokers at CCIS's Trade Association

FOCUSING ON THE QUALITY OF LIFE

Brian Lack & Co

SUSTAINABLE REAL ESTATE PLATFORM

WE ARE TURNING WISHES INTO REALITY PREDRAG DEVIĆ Director of Beoagent

GREEN STANDARDS AS AN IMPERATIVE

DREAM TEAM MIROSLAV CVETKOVIĆ

MPC Properties

Green construction

Director of Cvetković-Roškov Nekretnine

SIGNIFICANT SUPPORT FOR INVESTORS

HUGE PRICE JUMP Real estate market

WP Properties

Chairman of the Board of the Real Estate Cluster

Business facilities

THE MARKET IS EXPERIENCING A GREAT EXPANSION NEBOJŠA RAPAIĆ

NENAD DJORDJEVIĆ

OFFICES TAILOR-MADE TO EMPLOYEES

SANJA MITROVIĆ

Trends

THE MARKET IS AWAKENING

REAL ESTATE INVESTMENTS ARE THE BEST INVESTMENTS

Director of Feniks Sistem

LEARN TO SUCCEED CONFERENCE Real Estate Cluster

NIŠ FOLLOWS IN BELGRADE’S FOOTSTEPS

dr SLAVIŠA PEŠIĆ

ONE-STOP SHOP ERVIN PAŠANOVIĆ

CIPS, ABR, SRS, RENE Director of RIZNICA Realty, Niš NAR® Board of Directors

Director of Adventis Real Estate

TANJA BANKOVIĆ

VLADIMIR DJUKIĆ

tanja.bankovic@color.rs

ILIJA PETROVIĆ INDIGOCHILD

Editor in Chief

SANJA ŠOJIĆ Journalist

sanja.sojic@color.rs

TAMARA BOŠKOVIĆ Contributor

Contributor

Art director

indigochild.ilija@gmail.com

NATAŠA NEŠIĆ

Advertising director

JOVANA MARKOVIĆ

DRAGANA RADOVIĆ

ROBERT ČOBAN

dragana.radovic@color.rs

Photos

JELENA RANDJELOVIĆ

RUŽA RISTANOVIĆ

GORAN ZLATKOVIĆ GETTY IMAGES UNSPLASH

jelena.randjelovic@color.rs

ruza.ristanovic@color.rs

Advertising manager

jovana.markovic@color.rs

Advertising manager

Magazine director

Director

robert.coban@color.rs

Translation

SNEŽANA BJELOTOMIĆ Print

ZLATNA KNJIGA Jagodina, Bagrdanski put bb

natasa.nesic@color.rs

R E A L E S TAT E I N S E R B I A

WE ARE CONTINUING TO REGULATE LEGISLATIVE FRAMEWORK Today, agencies and citizens are buying and selling real estate in an environment where there are greater legal certainty and significantly higher quality of services

I N T E RV I E W

e have talked to Rasim Ljajić, Deputy Prime Minister of Serbia and Minister of Trade, Tourism and Telecommunications, about the current situation in the real estate market, the relevant legislative framework and the existence of shadow economy in this sector.

What are the results of the implementation of the Law on Real Estate Brokerage Services? — The law brought order into a completely unregulated area, so the real estate market is much more orderly today than before 2013. Today, agencies and citizens are buying and selling real estate in an environment where there is greater legal certainty and significantly higher quality of services, while before anyone could have mediated in the sale and lease of real estate. The fact that every interested apartment buyer can check whether a particular real estate agency is registered with the Register of Real

Estate Brokers, which our Ministry manages, had a strong impact on regulating the real estate market. By being registered with both the Business Registers Agency (APR, in the Serbian language) and the Register of Real Estate Brokers, real estate agencies are also more accessible to state authorities and the state authorities can now check their work. There are currently 850 real estate agencies from all over Serbia registered with the Register of Real Estate Brokers that meet the criteria for legally performing real estate brokerage services. We will continue to improve the legal framework to further regulate this business activity. Last year, by adopting amendments to the relevant law, we introduced stricter conditions for brokers whereby they can engage in buying and selling of real estate only if they were not criminally convicted. In this way, the law was harmonized with the Law on Prevention of Money Laundering and Financ-

RA S I M LJA J I Ć Deputy Prime Minister of Serbia and Minister of Trade, Tourism and Telecommunications

We will continue to improve the legal framework to further regulate this business activity

ing of Terrorism. This is important considering that the new National Strategy Against Money Laundering and Financing of Terrorism puts real estate brokers in the medium-risk category.

How many agents have passed the certification exam so far? — Since October 2014, i.e. since the certification exam for real estate brokers was introduced, a total of 3,210 persons have been certified. The fact that the law stipulates that at least one employee in a real estate agency must have a license obtained as a result of passing the certification exam has also additionally regulated this market because agents come in direct contact with citizens who buy or sell real estate and it is very important that the citizens are well instructed in terms of their rights and obligations. What are the results of curbing the shadow economy in this segment? — To begin with, we should note

that we are yet to receive an official complaint from citizens or companies relating to the existence of unregistered real estate brokerage. Only in one case, during a thorough inspection, the Market Inspection found that the agency in question was registered with the APR but was not registered with the Registry of Real Estate Brokers, after which they were immediately banned from performing real estate brokerage services and a lawsuit against them was filed with a misdemeanour court. Another special aspect of the work done by the real estate brokers is advertising activities which are increasingly done online. Market inspectors now have to perform additional searches and controls, since the only way real estate can be advertised for sale or lease is solely with the consent, that is, the contract between the agency and the owner.

What is your position on global rental platforms? What changes did these platforms bring to the tourist offer in Serbia? — Global platforms for renting apartments have certainly made a positive contribution to the development of Serbian tourism, in many ways. First of all, our tourist offer has been made visible throughout the world, because some of the biggest websites, such as Booking. com and Airbnb, are used by a huge number of tourists globally, which certainly contributed to the promotion of Serbia as a tourist destination and a greater influx of foreign tourists. Last year, the users of Booking.com rated Serbia among the 10 most respected host countries. These platforms have also shown that we have a financially affordable quality offer, which boosts the attractiveness of our country. However, the ever-increasing use of this supply channel has further drawn attention to the vast grey area in which individuals rent accommodation according to a model popularly called "apartment for a day".

Since October 2014, i.e. since the certification exam for real estate brokers was introduced, a total of 3,210 persons have been certified as real estate brokers

Although we have been dealing with this problem for years, the shadow economy has become more apparent through these new platforms, because unregistered owners of apartments, who are not that easily traceable, advertise in large numbers. This made us even faster in systematically resolving this problem by adopting a special catering law this year which facilitated the business by allowing individuals to rent without having to use an intermediary. Now, they are also obligated to pay a precisely determined annual lump sum tax via a simple procedure. This will make the domestic offer even better, namely accommodation owners will now operate in a well-organized system without unfair competition. At the same time, more collected tax will increase the revenue of municipalities and cities that can be used to boost local tourism.

How much real estate has been rented under this law? — Following the adoption of the

TELECOMMUNICATIONS

In addition to real estate, we also spoke to the Minister about 5G network and abolition of roaming charges. The first 5G base station in Serbia recently became operational. When will the Ministry launch an auction for the sale of the free segment of the frequency spectrum for the introduction of 5G technology? — The sale of the 5G spectrum is planned for the third quarter of next year, and we

new Catering Law, and especially since the beginning of the implementation of the new lump-sum tax payment on 1st July, there has been an increasing number of requests from ordinary citizens regarding the categorization in leading tourist destinations in our country which are the first positive signals that show that new measures are rooting out the shadow economy in this sector. To illustrate this, I would like to mention Belgrade where, until recently, only 2,500 beds have been categorized. However, since the implementation of the new law, close to 300 new categorization applications have been submitted. This data shows that citizens have finally realized that it is much more profitable for them to do business in accordance with the law. Also, the message to all of us is that it is necessary to create an environment that will stimulate people to do business legally, which, I hope, is achieved through a whole set of new measures. 

are probably going to choose a solution whereby we do this through selling the range in stages, at several auctions. Taking into account the latest global trends, Serbia is seriously considering the idea of assigning a part of the spectrum to the development of smart cities and industry. Speaking of the expected revenue, we need to bear in mind that spectrum purchasing is only part of the 5G technology investments that are very substantial, so the auctions should be an incentive for further investment. What economic effects do you expect to see from the reduction in roaming charges when it comes to tourism and economy? — At this point, the citizens will feel the biggest effects of reducing roaming charges in the shape of cheaper calls and more accessible use of the Internet. At the same time, this solution is good for operators as they will compensate the lower revenue with the growth of traffic volume because citizens will now use many roaming services to a greater extent, so we do not expect negative effects for operators.

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INTRO

ROOM FOR FURTHER DEVELOPMENT In addition to the boom in residential construction, the Serbian real estate market can record progress in all other segments By TAMARA BOŠKOVIĆ

he number of building permits issued in 2018, which exceeded the number of permits issued in 2010, best illustrates the expansion of the real estate market in Serbia. This means that there are currently about 40,000 active construction sites in Serbia, of which most are in Belgrade. The capital can boast of a larger number of permits and sites than it all local self-government units put together, and over the past two years, building permits for over a million square metres of buildings have been issued every year. Almost every apartment built in Belgrade is almost immediately sold. The record-high prices, which in exclusive locations and luxury buildings can reach 5,000 euro per sqm, have influenced the boom in residential construction in the Serbian capital. According to certain estimates, the prices of a square metre are not expected to fall, therefore the buyers have already learned to buy in the early stages of construction because there is a real possibility they will be left out without a real estate of the desired size

and because of the ever-growing real estate prices. They are increasingly looking for quality, so investors in different locations are competing to use the top quality materials in apartments and the entire complexes because the quality of life is what is appreciated and what the customer wants. Some municipalities are getting completely new outlines, and it seems that most residential investors are focusing on Block 65 in Novi Beograd. The West 65 complex, Savada 3, Exing, Wellport, the first condominium built on this side of the river by the Israeli investors, and the Zepterra complex (Chinese investors from Hong Kong has entered the housing market for the very first time building this complex together with Zepter Group) are all currently being built in Block 65. There are several other construction projects in the proximity of this Block – the Block A is going to be finished soon, the New Minel building is being built, PMC Inženjering is building apartments under the auspices of the Block 32 project, while Energoprojekt has started with the construction of Park 11.

Although much progress has been made with the adoption of the General Regulation Plan, Belgrade still suffers from a lack of free and usable construction sites. Investors are fighting for the most sought after locations in the heart of the capital, staying with the parts of the city with developed infrastructure. It is possible that this problem is one of the reasons for an increasing number of towers being built in Belgrade, which are a global solution for the growing urban population. Bearing in mind that the construction of skyscrapers is much more expensive than conventional construction, it is also a characteristic of the growing market, but also the growing economy in the given area. MPC Properties is building 22-storey-high Ušće Tower 2; there is the West 65 Tower (40 floors and 155 meters high), and the 129-metre-high Skyline Tower that it will welcome its first tenants by the end of this year. The eponymous tower, built in the Belgrade Waterfront complex, with 40 floors and standing at 168 metres high, will be the tallest building in Belgrade. Infrastructure, especially traffic infrastructure, is especially important for the development of the real estate market. It remains to be seen how much will the subway, which construction is expected to start in late 2020, affect the fluctuation of real estate prices in Belgrade. Judging by the demand, Belgrade seems to lack contemporary office space, which, by 2020, will span a million newly built square metres. 140,000 square metres are being built as we speak, and the expected completion of business facilities this year alone should increase the availability of free space by close to 10%, which is a minimum for attracting a significant number of big tenants. Currently, the Sirius complex (in the second stage of construction), Navigator 2 and Ušće Tower 2 are all under construction, while the Kalemegdan Business Centre is being built

Belgrade suffers from a lack of free and usable construction sites

in the old part of Belgrade. As the construction of the Business Garden is finished, the Serbian capital has the only modern business building located in a prestigious location, in the city centre. Interestingly, as part of the operational growth and the plan to hire more staff, the US company NCR started constructing a business building and campus in Block 42 which will cost about $90 million. In terms of retail space, close to 300,000 square metres of shopping mall and retail park space were built by 2015. This figure doubled in the next two years. In late May, the Ada Mall was opened in Belgrade, spanning 100,000 square metres. The trend of retail construction has also affected bigger cities in Serbia. A shopping centre in Karaburma is supposed to be opened next year, while the BW Gallery and the West 65 Mall are currently under construction. The expectation is that investments will continue in this real estate segment, bearing in mind that the expected return on investment is

about ten years. According to experts, Serbia has the potential to develop the real estate market in the logistics and industry segment too, with about a million square metres built in these sectors over the last 19 years. This market segment largely depends on the degree of infrastructure development, especially the transport network, but also on the construction costs that are constantly increasing. Further expansion of the real estate market can be expected in the next period, experts say, especially considering that prices in the Central and Eastern European countries will match those in the Western European countries, which creates an opportunity for Southeast Europe. Although not a member of the EU, Serbia is interesting to foreign investors due to its size and degree of development of the real estate market, which also creates a special opportunity, especially when it comes to the development of the commercial real estate. 

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THE MARKET NEEDS TO BE FURTHER EDUCATED The prognosis is that networking of real estate brokers to make bigger systems with the view of ensuring economy of volume would have to come soon

I N T E RV I E W

ince 2007, brokers assembled in professional associations have been actively working towards regulating the market with a special emphasis on proposing legislative arrangements. Brokers, gathered under the professional associations of Real Estate Cluster and the Group of Real Estate Brokers of Serbia adopted the Code of Ethics of Real Estate Brokers.

The Assembly of the Chamber of Commerce and Industry of Serbia (CCIS) has adopted the Code of Ethics of Real Estate Brokers. How much can this act contribute to elevating the professional work in this sector? — In performing a brokerage business, the Broker is obliged to act conscientiously and honestly, in accordance with the Law, other regulations and good business practices, to earn trust by protecting the interest of the principal and the third party, to act impartially in order to do the job, while taking into account the dignity of the brokerage business, as well as to elevate the level of professional know-how of their employees who perform brokerage activities.

The Code has been in effect since July 7, 2019, and sets out the basic ethical principles and norms of professional behaviour of brokers in the sale and lease of immovable property. The Code's are binding for the brokers operating in Serbia, who have accepted the Code. The brokers are obliged to inform their employees to the Code's provisions, is responsible for compliance with the Code's and is bound to show the Code on their official websites.

What kind of protection do the Code and the Group offer to brokers? — In terms of supervision and implementation of the Code, the Group of Real Estate Brokers monitors the implementation of the Code. A Commission was appointed to examine whether the brokers who acceded to the Code are following its provisions. The Commission has the authority to examine whether a broker operates in line with the Code, or contrary to its provisions. If the Commission finds a violation of the Code's provisions, the Commission shall file an application to initiate proceedings against the broker at the CCS' Court of Honour,

DA M I R B O R I Ć President of Group of Real Estate Brokers at CCIS's Trade Association

It is necessary that the amendments to the Law on Real Estate Brokerage Services determine the method of engagement of agents

for breaching good business practices and business morality in business relations.

What changes do the future amendments to the Law on Real Estate Brokerage Services bring in terms of regulating the working status of the broker? — Since the adoption of the Law on Amendments to the Labour Law, which erased Article 200 of the Labour Law, the engagement of agents, which was usual practice in real estate brokers, is now made impossible. Concluding a job contract, which is currently the only working form of agent engagement, leads to higher costs of brokerage operations and is contrary to the nature and practices of this industry. Most agents expect to receive an appropriate percentage of a brokerage fee for their work, but this has been rendered impossible based on the job contract due to excessive tax burden and salary contributions. For many agents, performing the job of a real estate broker is an additional activity. Therefore, it is necessary that the amendments to the Law on Real Estate Brokerage Services determine the method of engagement

of agents by business entities/ real estate brokerages registered with the Registry of Real Estate Brokers, i.e. to define the possibility of concluding an agreement on representation with persons who have passed the professional real estate brokerage exam. This would regulate the status of between 800 and 1,000 agents in the first year of implementation of the regulation, which would significantly reduce the shadow economy in this segment.

How widespread is the networking of real estate brokers to make bigger companies to ensure the economy of value? — Unfortunately, we are at the very beginning regarding this issue, that is, such processes have not even started. The fact is that there has been a fragmentation or decommissioning of some major real estate brokerages. This process had to take place considering how disorderly and chaotic the real estate market has been, as well as due to brokerages hiring uneducated workforce until the Law Real Estate Brokerage Services was passed. The process has been lasting for too long. The prognosis is that networking of real estate brokers to make bigger systems with the view of ensuring economy of volume would have to come soon since we are already feeling the consequences of the defragmentation and certain individuals would not be able to keep up with the market game considering how many responsibilities and obligations they have as the participants in the real estate brokerage market, regardless if they are registered as entrepreneurs or companies. How much is the Chamber of Commerce and Industry of Serbia's Group of Real Estate Brokers involved in building an institutional framework that would facilitate the development of the real estate sector? — At the initiative and with active

participation by the Real Estate Cluster and the Group of Real Estate Brokers of Serbia, the Law on Real Estate Brokerage Services was passed in 2013 while the relevant bylaws were passed in 2014. It should be noted that this regulation also stipulates the Registry of the Real Estate Brokers containing the information on all persons who passed the real estate brokerage exam. This Registry is publicly available on the official website of the Ministry of Trade, Tourism and Telecommunications. Representatives of real estate brokerages have been actively participating in educating the Registry's members regarding the implementation of the Law in practice and adherence to its stipulations. They told the management of State Market Inspection that they were unreasonably assessed as highly-vulnerable in relation to other non-financial sectors by being classified as „a medium-high risk group “. These two associations along with the Chamber of Commerce and Industry of Serbia have been educating real estate brokers since 2009, while since 2014, more than 1,500 persons attended training. Also, the representatives of both associations have participated in creating the updated National Assessment of Money Laundering Risk in Serbia, as well as in the imple-

mentation of the activities relating to the Action Plan of the Council of Europe Committee called Moneyval and the ICRG Working Group.

The brokers are obliged to inform their employees to the Code's provisions, is responsible for compliance with the Code's and is bound to show the Code on their official websites

How much is the shadow economy present in the real estate sector and what kind of solutions can diminish it? — The volume of the shadow economy in Serbia is today at a much lower level than five years ago, but it is not in line with the expectations. Shadow economy did dimish following the adoption and implementation of the Law on Real Estate Brokerage Services, the bylaws, improving the business environment and macroeconomic stability, labour market recovery, improving the work of inspections, harder penal policy and more efficient collection of taxes. It is necessary to finish the networking of electronic databases of the Business Registers Agency, the Tax Administration, inspection bodies and others as soon as possible, to be able to promptly deal with all those people who violate the laws. Special attention should be paid to the control and supervision of business entities in terms of hiring persons outside the legal framework, as well as individuals who perform business activities but are not registered with the Business Registers Agency and the Tax Administration. We would especially like to highlight the need for the continuous education of all market participants, especially buyers and sellers. We are underlining this because both buyers and sellers oftentimes avoid using the registered and licensed real estate brokerages under the pretence that they „save“ money this way and don't have to pay brokerage fees. Both buyers and sellers often resort to the use of unregistered brokers operating in the grey or the black zone, thus doing themselves a disservice by failing to receive quality services and, in the majority of cases, having to pay much more in the long run. 

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B U S I N ES S FAC I L I T I ES

OFFICES T TAILORMADE TO EMPLOYEES

A certain lifestyle of a business facility is becoming increasingly important By VLADIMIR DJUKIÄ&#x2020;

he work environment has been changing greatly over the past ten years, so an increasing number of business facilities are following the sustainable construction standards, thus reducing the impact of these facilities on the environment and their costs, as well as improving the working conditions of the employees who work in them. According to the latest research, in addition to location and technical equipment, one of the most important factors is the impact of business premises on human well-being and health, which is in direct correlation with better productivity of the workforce. Therefore, the

design of the working space has become increasingly important for companies, namely, whether space has enough natural light, good room ventilation and encourages workers to move around more. The focus on the comfort that modern business centres provide is something that will have a strong impact on investors' strategies in the next five years. The increasingly popular work from remote locations, enabled by modern technology, as well as flexible working hours, dictate changes in business premises. In Europe, there is a growing demand for flexible business premises that has doubled since 2014, and these trends are reflected in new business

Additional amenities in contemporary business facilities in Belgrade enable employees to do their errands in the vicinity of their workplace and thus save time

way to support the building of relations between people who use them, as well as facilitate the exchange of ideas and activity-based work. Classic work stations are replaced by a system of interconnected work zones suitable for different modes of operation. There is an increasing variety of additional amenities in contemporary business facilities in Belgrade. These amenities enable employees who work in such complexes to do their errands in the vicinity of their workplace and thus save time. In addition to offices, business buildings now have restaurants, nurseries, fitness centres and even beauty salons. All these changes require more intensive management of the real estate and investments, which are

required so that Belgrade could stand shoulder-to-shoulder with other capitals in terms of its offer and quality of construction and thus attract more global companies and their business to the SEE region. There are currently more than 700,000 square metres of modern office space in Belgrade. At this moment, 140,000 square meters of business class A are being built, and this year, 60,000 square meters are expected to be made available in the market. The average rent price last year was between 15.5 and 16.5 euro per square metre, and the occupancy rate in Belgrade was 96%. Bearing in mind the growing offer in the coming period, a slight fall in office rental prices can be expected in 2021. ď&#x201A;Ł

complexes that are being built in Belgrade. Flexible business spaces provide companies with the opportunity to use them more creatively and give employees more freedom. This approach is taken from increasingly popular co-working spaces that give people more than just a desk, i.e. the focus is on creating a community within the organization. Co-working spaces are becoming increasingly popular in Serbia, especially in Belgrade, where close to 40% of them are located. Over the past year, offices of this type in Serbia generated revenue of a little over 3 million euro. While following global trends, it is also of crucial importance for work stations to be designed in a

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FOCUSING ON THE QUALITY OF LIFE

TRENDS

Building complexes that offer various amenities are becoming increasingly popular among buyers By VLADIMIR DJUKIĆ

lthough the demand for residential real estate in Belgrade is still much higher than the supply, with virtually no unsold real estate remaining, the overall quality of life that an apartment in a particular location provides is crucial in making a purchase decision. One of the most popular types of residential properties in the Serbian real estate market was brought to this country by foreign investors a few years ago. These are condominiums that set a high living standard while respecting the urban dynamics of the modern way of life. From smaller buildings that were, back in the day, in huge

demand, now the focus has shifted to building complexes that offer entertainment, recreation, relaxation, peace and privacy. Thanks to this concept, condominiums meet the needs of young people, families, business people, and older generations alike. First and foremost, condominiums offer security to their tenants bearing in mind that these are closed complexes, with video surveillance and reception. There are also additional amenities like private parks, sports grounds, retail facilities and even nurseries which all make this type of property ideal for families. Condominium amenities are carefully designed to suit the needs of potential buyers in a

Condominium amenities are carefully designed to suit the needs of potential buyers in a particular location

particular location, making them attractive to different generations. Most of them also have fitness and spa centre that could be available only to tenants, or with special benefits for tenants. One of the main advantages of the condominium is the professional maintenance of the facility, which entails that the quality of housing will be maintained at a high level over the years. In addition to modern design, quality and safety, this kind of real estate is usually built in attractive locations, in the heart of the city, and also has sufficient soundproofing. For now, condominiums are available only to Belgrade residents with Israeli investors topping the list. Shikun & Binui Group is currently building the first condominium complex in Novi Beograd, a 130-million-euro investment. The Group has already completed the Central Garden and Vožd's Gate projects. Other contractors have also followed their suit and have found the Belgrade quarter of Novi Beograd to be particularly interesting for the development of such complexes. As of recently, here is another trend emerging in Belgrade in development of residential housing – these are condominiums in highrise buildings, built in smaller land plots and characteristic for downtown. The construction of the West 65 towers is currently underway, as is the construction of the Skyline building complex and the Belgrade Tower, under the auspices of the Belgrade Waterfront project, that will offer a collection of branded apartments for sale. These are often mixed-purpose spaces which also have business premises and are hence suitable for business people. It seems Belgrade's beat is becoming increasingly consistent with the condominium lifestyle. It remains to be seen whether these complexes will find their place in the market in other major cities of Serbia. 

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MPC PROPERTIES

SUSTAINABLE REAL ESTATE PLATFORM

PC's company strategy is to build state-of-the-art office and retail premises that are in line with the world's highest standards. They are a company that thinks strategically and long-term, and they do not compromise when it comes to building quality and sustainability, investing more than the competition in actual con-

struction of buildings, which they are recognized for on the market. This does not only mean the development of real estate, but also the management of the same property, which ensures that it is extremely important for buildings to be sustainable, functional and in line with the principles of green construction. During the designing of their prop-

erties, the A classifications represent a minimum. Furthermore, the principles of green construction are also a requirement, as well as their knowhow and experience in asset and property management, in order for properties to be unique on the market. MPC Properties is a member of the Serbian Green Building Council.

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BEO B SHOPPING CENTER Advanced shopping experience

EO Shopping Center, a new generation of the shopping experience, is a brand-new shopping center in Belgrade with over 43,000 sqm of GLA and a total built-up area of 130,000 sqm. The investment of more than €110 million in this project will serve a catchment population of more than 345,000 people within 15 minutes’ drive and become the place which will be the center of people’s lives. The opening of BEO Shopping Center, with 3 levels and over 130 international and regional brands, is planned for spring 2020. The concept of this modern shopping destination follows the latest global trends in retail with multiple open areas, lots of natural light and greenery, all in order to provide visitors with the high-val-

ue experience and shopping enjoyment. The modern design of the building is a conceptual result of well-known international design office Chapman Taylor based in Dusseldorf, Germany. The BEO Shopping Center will feature a specially created tenant mix, with well-known international and regional brands, with different categories, from fashion to sports, meeting the consumer expectations and being in line with their behavior. The center provides additional content: cinema, supermarket, children’s play area, rich gastronomy offer and will be the spot where regular events take place. This investment will unify the expertise and rich experience the company has, as well as incorporate the latest global trends in the retail industry.

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UŠĆE TOWER TWO Building that breaths

šće Tower Two is a modern, luxury office building, offering A+ class business space on 22 floors, with 23,200 m2 of gross leasable area (GLA). Built next to the existing Ušće Tower One and Ušće Shopping Center, Tower Two will redefine the concept of premium business space in Belgrade and set completely new standards. Located in the most prestigious part of the city, in the heart of New Belgrade’s central business district, directly adjacent to the confluence of the rivers Sava and Danube, it offers easy access for all kinds of traffic. The building is designed in accordance with green building standards, it is in the process of BREEAM certification, and the view is excellent. Ušće Tower Two will be a “building that breaths”, with decentralized natural ventilation system integrated into a façade, which enables fresh air in office premises at the touch of the button. Along with the new tower, MPC Properties is developing a two-level underground garage with 750 parking lots aiming to cover the parking needs of both towers. Aside from the highest quality workspace with flexible rental areas on each floor, Tower Two offers additional facilities and amazing surroundings, perfectly complementing the existing buildings: UŠĆE Shopping Centre, the most visited and the best performing shopping centre in the region, and the Museum of Contemporary Art.

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NAVIGATOR T BUSINESS CENTER COMPLEX More than a workplace

he Navigator Business Center is a modern Class A office complex in Belgrade's central business district. After the successful completion of the first phase of the Navigator Business Center, the construction of the second phase of the complex with additional 27,000 m2 GLA is in progress. The opening is planned for Q1 2020. An efficient, functional, user-friendly environment will be more than just a place for work and a perfect choice for modern and demanding professionals. In addition to a modern workplace, the Navigator Business Center complex will provide two restaurants, a daycare unit, a fitness center, a beauty salon, art gallery and other facilities.

 GF + 8 FLOORS OF SMART DESIGN, SOPHISTICATED AND HUMANE OFFICE AREA  500 PARKING SPOTS IN A THREE-LEVEL UNDERGROUND GARAGE  EXTREMELY EFFICIENT, WITH MINIMIZED UTILITY COSTS  HIGH-PERFORMANCE OFFICES WITH MAXIMUM FLEXIBILITY AND 3,000 Sqm AREA PER FLOOR  EFFICIENT VERTICAL COMMUNICATIONS, WITH DESTINATION CONTROL  SUPPORTED BY A PROFESSIONAL MANAGEMENT TEAM 17

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SIGNIFICANT SUPPORT FOR INVESTORS West Properties – through an innovative strategic approach to the leading domestic real estate company

CO R P O R AT E

he real estate market is setting new records, both in terms of prices and the number of square meters under construction, and the buyers are paying more and more attention to the usage value of property. This is why there is a noticeable trend among the investors who are constantly boosting the quality of construction and accompanying services, in both residential and commercial buildings. In a strong market game, it is important to offer a project that will respond to all the buyers’ requirements in terms of modern housing or doing business, and at the same time, make it stand out from the competition, but also secure a fast return on investment. This is why real estate consultancies are important.

ASSISTING WITH A QUICK RETURN ON INVESTMENT “It is our job to see the potential issues and risks and to eliminate or prevent them so that our clients can finish the work they started with positive outcome,” West Properties states. The company offers full support to investors regarding the implementation and development of real estate projects, by providing them key information on:

With the help of its investment consulting services West Properties ensured successful acquisition of the Beko project, located below Kalemegdan

• what would be the best thing to build at a certain location, • a nalyses of the best project utilization, • financial feasibility and cost-effectiveness analyses, • project management during adaptation or construction procedure, • professional property management services. This kind of approach of the West Properties Company has facilitated the successful implementation of different projects, like the residential-commercial complex Panorama Voždovac, which was completely sold out in one year of active sales, Rankeova 16 and also the Ziegel House business complex. The following projects stand out from numerous in the company’s portfolio: • Kapija Vračara, the largest residential-commercial project in this Belgrade municipality • Green Hill, a unique luxury complex in Dedinje • Residential project ML 27, which brings an all-new concept to the Belgrade market.

PROJECTS IN PREPARATION As an exclusive representative, West Properties is currently preparing to start selling the units in the residential and commercial complex, spanning 90,000 square

meters, in one of the most beautiful locations in Novi Beograd, a new luxury building in Zvezdara, and the start of new construction in an attractive location in Vidikovac. The company is also gearing up to start representing an exclusive shopping centre in Novi Beograd.

MARKET IMPROVEMENT West Properties has created the Construction Design Concept, a specialized exhibition centre for products and services used in furnishing interiors and finishing construction works, which is envisioned in cooperation with the leading companies in this segment. The centre will open this autumn, and in this way, West Properties will help the investors and the end buyers to choose the suppliers of products and the contractors, as well as the design of all types of buildings. An integral part of the concept is the project management services that will ensure compliance with relevant objectives during the construction process, including resource planning and management during the entire project. West Properties has also introduced investment consulting as an additional service, which will provide clients with more efficient implementation, significant savings, and thus greater profit. 

Baba Višnjina 38, 11000 Belgrade, Serbia • Reg. No 416 • +381 11 32 43 274 • office@westproperties.rs • www.westproperties.rs

Swiss quality IN THE HEART OF BELGRADE

The warmth of the home lies in details, that is why ML 27 - Swiss Apartments is designed to improve your quality of life, providing you with maximum privacy and a new level of comfort. Located at the most beautiful part of South Boulevard, near Neimar Park, ML 27 is a blend of Swiss quality and luxury in one of Belgrade's most promising areas. • Three-bedroom, two-sided oriented apartments, each organized into two functional units • Fully equipped kitchen and laundry-room with products of renowned brands • Coded key entry and elevator which gives you access only to your apartment • Video surveillance and completely controlled entrances • Spacious outdoor parking and garage lots • Professional maintenance.

063 300 355

welcome@westproperties.rs Exclusive Sales Representative

WELCOME TO YOUR NEW HOME! Reg. No 416

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THE MARKET IS AWAKENING Cooperation with international real estate associations is crucial for attracting FDI in Serbian real estate market

I N T E RV I E W

e talked with Nenad Djordjević, Chairman of the Board of the Real Estate Cluster, about the current situation in the real estate market, its expansion and the potential.

At what pace is the Serbian real estate market developing? — In the past two years, the prices and the turnover in Serbia's real estate market stood at around 35%. Prices of apartments in certain parts of Belgrade grew the most, while the demand for construction land in Belgrade and Novi Sad and agricultural land in Vojvodina has increased. The market is awakening, which attracted a lot of foreign investors investing in housing and business complexes. There is also stronger interest in investing in logistics centres, warehouses and industrial facilities. What role does the Cluster play in this segment? — Real Estate Cluster is an association that was formed in 2010 by companies interested in regulating the real estate market, reducing the shadow economy and boosting the competitiveness of the domestic economy in this area, with the support of the Ministry of Trade,

Tourism and Telecommunications. In late 2011, we launched the initiative for the establishment of the Group of Real Estate Brokers in the Chamber of Commerce and Industry of Serbia, which had been lobbying for the adoption of the Law on Real Estate Brokerage Services, and in cooperation with the line ministry, implemented a series of activities aimed at curbing the shadow economy. In the past few years, we have partnered with leading professional associations from abroad with the view of sharing experiences, train employees according to the standards implemented in the most developed world economies and to attract FDI. We became a Direct Principal Member of the International Real Estate Federation FIABCI. FIABCI was founded seventy years ago in Paris, has chapters in 68 countries and is a permanent consultant to the UN Economic and Social Council (ECOSOC). FIABCI members are real estate brokers, project designers, auditors, real estate consultancies and others. Following the signing of a Bilateral Cooperation Agreement in 2016 in Orlando, the Real Estate Cluster became an exclusive partner of the National Association of Realtors in Serbia. The Nation-

N E NA D DJORDJEVIĆ Chairman of the Board of the Real Estate Cluster

Real Estate Cluster is an association that was formed in 2010 by companies interested in regulating the real estate market

al Association of Realtors (NAR) is the largest professional organization of real estate professionals in the world, founded in 1908, which has over a million members in the United States and some 300,000 members abroad. NAR is the largest trade association in the United States, after the US Chamber of Commerce, which members generate about $50 billion in total annual revenue. NAR advocates the interests of real estate industry and property owners in the US government and has one of the most influential lobby groups in the US Congress, the RPAC (Realtors Political Action Committee). NAR has concluded cooperation agreements with associations in more than 100 countries around the world. Last year, the Real Estate Cluster concluded a Cooperation Agreement with the Russian Guild of Realtors (RGR), a leading professional association in this field in the Russian Federation. This year, together with the RGR, we will harmonize our longterm cooperation plan which will define measures for improving business cooperation between the members of the two associations. In cooperation with the NAR and with the support of IHC Global, the Real Estate Cluster has organized

a series of specialist training for agents, SRS (Sales Representative Specialist) course, ABR (Accredited Buyer Representative) course and others. The course programmes have been adapted to our specific conditions and while Dr Slaviša Pešić, Vice President of the Expert Council of the Real Estate Cluster, translated the relevant literature in the Serbian language. In addition to Serbia, the courses were held in Bosnia and Herzegovina (in Sarajevo and Banja Luka).

The conference titled „Learn to Succeed“, organized by the Real Estate Cluster, is the biggest and most important annual gathering of real estate brokers in Southeast Europe. How important is this exchange of know-how for the development of the real estate profession? — Continuous education of real estate agents, along with the implementation of the newest IT technology, are the most important factors for advancing real estate business. Professional associations in the US and other countries, in which the real estate brokerage exists for over 150 years, have developed their education systems. The National Association of Realtors, with which we cooperate when organizing our conference, has made the biggest leaps forward in this segment. This year's conference took place in Belgrade, from 15th to 17th April 2019. The conference was officially opened in the Palace of Serbia, while lectures and workshops were held at the ZIRA Hotel and the Building Trade Fair SEEBBE 2019. State Secretary in the Ministry of Trade, Tourism and Telecommunications, Vesna Kovač officially opened the conference. The opening ceremony was also attended by the President of the Group of Real Estate Brokers in the Chamber of Commerce and Industry of Serbia, Damir Borić, President of the National Association of Realtors, John Smaby, President

In the past two years, the prices and the turnover in Serbia's real estate market stood at around 35%

of the Russian Guild of Realtors, Arsen Unanyan, and President of the Women's Council of Realtors, Heather Ozur. Representatives of the Ministry of Trade, Tourism and Telecommunications, the Administration for the Prevention of Money Laundering and leading experts in the field of real estate brokerage and evaluation, building management, finance and banking from the country and abroad all participated in the conference. We also had a summit of the presidents of the real estate associations from the US, the Russian Federation and Central & Eastern Europe under the conference’s auspices.

Presidents of associations from Serbia, Slovenia, Bosnia and Herzegovina (the Republic of Srpska), Bulgaria, Romania, Moldova, Georgia, Ukraine, Belarus, the Russian Federation and the United States took part in the conference. The summit participants agreed that the mentioned associations would establish lasting cooperation in the exchange of experiences in improving the legislation regulating the field of real estate services, professional training of real estate agents and in other areas of importance for all summit participants. The fifth “Learn to Succeed” conference will take place from 22nd to 24th April 2020 in Belgrade. 

Palace of Serbia (from left to right), Pamela Banks, Vice President of WCR, Branislava Simanić, Director of the Entrepreneurship Sector of CCIS, Alicia Matheson, President Elect of WCR Orlando Regional, Heather Ozur, President of WCR, Radmila Stanković, President of Women’s Council of Real Estate Cluster and Adriana Čortan

THE WOMEN’S COUNCIL OF REAL ESTATE CLUSTER „The Women's Council was established with the aim of networking and continuous education of employees in the companies that are members of the Real Estate Cluster and all other colleagues who are engaged in real estate brokerage services lawfully,“ says Radmila Stanković, President of the Women's Council of Real Estate Cluster. The Council was established in March this year and has been cooperating with the Women's Council of Realtors (WCR) from the United States since its inception. WCR is the largest professional organization of women realtors in the world, established eighty years ago. WCR President, Heather Ozur and Vice President Pamela Banks were speakers at the „Learn to Succeed“ Conference 2019 and have supported the establishment of the Women’s Council of Real Estate Cluster. At the Council's inauguration session, held on 25th June 2019 at the Club of Serbian Parliament Members in Belgrade, the Council members recieved pins of Women’s Council of Real Estate Cluster. On the occasion, the Director of the Entrepreneurship Sector of the Chamber of Commerce and Industry of Serbia, Branislava Simanić announced the signing of the Memorandum of Cooperation with the Women's Council of Real Estate Cluster in September 2019.

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REAL ESTATE INVESTMENTS ARE THE BEST INVESTMENTS

In addition to the return on investment, additional profit can be generated from renting Sanja Mitrović

CO R P O R AT E

onstruction activity in Belgrade is quite strong, but the demand is currently much bigger than the supply which naturally leads to higher prices. The Serbian capital city has become an interesting investment location. At the moment, both domestic and foreign contractors are building residential complexes in several elite locations – Central Garden, A-Block, 11a Block (Cherry Blossom/Trešnjin Cvet), West 65, Savada and in one of the most attractive locations, Belgrade Waterfront (BW). The prices of real estate in these locations range from around 2,200 euro to 4,000 euro per Sqm. According to the Belgrade Waterfront professional services, and based on three years of experience with BW Residences and one year

In Serbia, the most promising format of real estate investment is residential

of experience with BW Vista, the average annual real estate price increase under this project is 7%, and the projected annual rental price increase is projected at 5%. „In Serbia, the most promising format of real estate investment is residential, as this kind of investment generates profit and is not high risk,“ Sanja Mitrović from Brian Lack & Co says. „In addition to the return on investment, additional profit can be generated from renting. Bear in mind that, in the last two years, the prices of apartments in Belgrade have been growing and the forecast is that they would continue to grow in the upcoming period too,“ Ms Mitrović adds. By bringing the best business practices from Central London, spanning 40 years, Brian Lack &

Apartment for sale

Business building for sale

BAJE PIVLJANINA

MAJKE JEVROSIME

94 Sqm • 250.000€

1905 Sqm • 3,341,091€

Company International opened its Belgrade office in 2011. Their professional and dedicated team, with a tailor-made approach to each client, has positioned the company at the very top of the luxury real estate market in Belgrade, which resulted in a substantial number of foreign and domestic clients, including companies and diplomatic missions, putting their trust in the company for years now. Among other things, Brian Lack & Company International has been entrusted with the exclusive sale of 50,000 square metres of commercial and residential space in Novi Beograd, near Airport City, which construction will have begun by the year-end. You can visit Brian Lack & Co in their new office in Belgrade Waterfront and see for yourself the quality of their offer. 

Apartment for rent

FLORE SENDS

264 Sqm • 2.500€

Belgrade Office BW Residence, Tower A, Hercegovačka 14/6 · 4th floor, Belgrade 11000, Serbia · t: +381 11 40 10 888 · e: belgrade@brianlack.co.rs · w: www.brianlack.co.rs

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GREEN CONSTRUCTION

GREEN STANDARDS AS AN IMPERATIVE Insufficient knowledge of the benefits the green construction concept brings is the main obstacle to its development in Serbia By VLADIMIR DJUKIÄ&#x2020;

ccording to certain estimates, construction in the world will have practically doubled by 2050 due to the growing population and urbanization trends. Bearing in mind global warming, climate change and the use of natural resources, but also the fact that the construction sector is spending up to one-third of natural resources, it is evident that changes in this industry are required. To illustrate just how alarming the situation is, various worldwide

Depending on the certification, the cost of construction can be up to 10% higher

initiatives have been launched to achieve sustainable development. At the initiative of the World Green Building Council, a total of 23 towns signed an agreement that stipulates that all newly constructed buildings must have zero carbon emissions by the year 2030, while the deadline for all existing facilities to reach this stage is 2050. New York, a city in which 70% of greenhouse gas emissions are attributed to skyscrapers, has adopted the most ambitious climate goal in the United States by prescribing green

roofs as compulsory and energy-efficient glass and steel standards that modern skyscrapers have to meet to obtain a building permit. Figures speak volumes about how much green build can contribute to environmental protection - How water consumption can be reduced by 40%, carbon dioxide emissions by 33%, waste by 70% and electricity consumption by 50%. In addition to reducing operating costs, energy-efficient buildings improve productivity and comfort of their tenants, but

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they also generate higher incomes - an annuity in green buildings is five to 8% higher, while their sales price is between 5% and 6% higher. Concerning long-term benefits, the initial cost of basic investment in green construction, which is about 2% to 3% higher than conventional, seems negligible. Depending on the certification, the cost of construction can be up to 10% higher. The certificates are there to provide a guarantee that the building is well-designed and built, that the used materials will have a beneficial effect on health on the building's tenants, as well as that the costs associated with using the facility will be lower by a certain percentage. While in Europe the number of green buildings doubles every three years, Serbia has great potential for energy savings in the construction sector, because about 80% of buildings are energy-inefficient. Due to poor insulation,

An increasing number of commercial facilities in Serbia now possess a green build certificate

carpentry and roofs, as much as 40% of the energy in homes are practically being wasted. As one of the ways to solve this problem, the state has recently introduced energy efficiency fees. An increasing number of commercial facilities in Serbia now possess a green build certificate, considering that the investors have started to think long-term about the benefits of this type of facili-

ty utilization. For the time being, there are no certified residential builds. Buyers are not familiar with the benefits that they could enjoy if their building was constructed in line with the principles of green construction, so there is no demand for them. But we should keep in mind that not all the parameters that would provide investors with adequate support and motivation are adequately regulated. ď&#x201A;Ł

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Eco Village Wind Rose is a comfortable settlement tailored to the modern business people needs, who are looking for nature, balance and movement. The village consists of three organizational units: residential, apartment and recreational-hospitality, four groups of houses and one apartment group, named by winds: Vihor, Lahor, Pirak, Povetarac and Razvigorac and forming Wind Rose Eco Village together. The Apetit Bar is located in the central part of the A Blok luxurious complex in Novi Beograd, on the ground floor of a residential and commercial building. The property spans 193 sqm, and the garden extends along the entire business unit at 90 sqm, situated in a pleasant and quiet ambience. The total capacity is 95 seats in the bar and 60 in the garden

For more information about properties above,please contact: Vista Point, reg. No 1019 Tel: +381646458423 Âˇ vista@remax.rs

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HUGE PRICE JUMP Looking at all the figures, it comes as no surprise that one of the most frequently asked questions is whether the prices have reached their maximum By TAMARA BOŠKOVIĆ

ow-interest rates and the growth in the number of purchases with the help of loans have led to an increase in real estate sales in Serbia. Last year, a total of 37,500 apartments were sold, of which 31% were purchased directly from investors, an increase compared to 2017 when 33,600 apartments were sold, of which 28% were newly built. In terms of real estate sales, Belgrade ranks first, with 50% of total residential real estate sales in Serbia. Also, the capital city has some of the most expensive real estates. Although Belgrade has long since turned into one big construction site, according to the data compiled by the State Statistical Office regarding the number of issued building permits, Vojvodina is experiencing the biggest construction activity. Namely, in the first quarter of this year, a total

R E A L ES TAT E MARKET

of 3,600 building permits were issued, of which most of them, that is, 2,693 relate to the construction of buildings. Observed by region, the highest number of building permits were issued in the area of Vojvodina (1,326), followed by the region of Šumadija and Western Serbia with 1,178 issued permits, then the region of South and East Serbia (659), while the least number of building permits were issued in the Belgrade region, only 437. The average price of apartments in Serbia in 2018 has risen by 5% to 920 euros per square meter, compared to the previous four years, when the price remained unchanged and stood at 880 euros per square metre, the official estimates of the State Geodetic Authority show. In terms of new construction, the prices rose by 12.8% in 2018 compared to the year before. The average price of a square metre in Serbia, as well as the fact

Of the total number of issued building permits in the first quarter of this year, 48.4% refers to the construction of new residential buildings

that prices in some neighbourhoods in Belgrade reached almost 5,000 euros per square metre of a luxury new apartment, clearly point out the huge differences that exist in the apartment prices across the country, but also how much the demand for new construction also affects the market. Prices differ in various locations in Belgrade too, with the average price of a square metre standing at around 1,300 euros. The prices of old apartments are usually around 1,600 per sqm, while the price in suburban municipalities of Belgrade is around 300 per sqm and even lower. In some parts of the city, the price of new apartments, which in Belgrade jumped by 14.7%, exceeds 3,000 euros per square metre. In addition to high demand, the quality of construction also contribute to higher prices, as well as the amenities. The most expensive apartments are located in the munici-

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palities of Vračar, Stari Grad and Savski Venac, while most of the real estate is sold in Novi Beograd, Vračar, Voždovac and Čukarica. Novi Sad is not lagging behind Belgrade where the price of a square metre in the town centre can reach 2,500 euros, while the prices in the parts that are close to the town centre range from 1,500 to 1,700 euros. On average, new apartments cost about 1,100 euro per sqm, while the average price of apartments in Novi Sad is around 860 euros per sqm. It has been estimated that around 50 investors are currently building 150,000 square metres of space in Novi Sad. From 2016 to the end of January this year, 864 building permits were issued in this city, and since then, buildings of the total area of 750,000 square metres have either been

completed or are under construction. The proximity to the capital dictated the average price of new apartments in Pančevo, 830 euros per square metre last year, while the average price of a new apartment in Vršac was around 760 euros per sqm. Regional centres are always appealing to the population from other regions. The average price of a square metre in Kragujevac is around 900 euros, while Niš is far behind with an average of fewer than 400 euros for residential properties. The market in the south of the country is much weaker and the real estate activity is low there, according to the data from mid2018. The value of the real estate market in Leskovac, the sixth-largest city in Serbia, was worth 7.2 million euros last year. Subotica

It has been estimated that around 50 investors are currently building 150,000 square metres of space in Novi Sad

was better with 29 million euros, Pančevo with 21 million, and Zrenjanin with 15 million euros. For comparison, the sale of real estate in Belgrade, in that period, amounted to 830 million euros, and in Novi Sad 185 million. Zlatibor also has high real estate prices that range between 1,000 and 3,000 euros per sqm, although according to some estimates, prices in this area have stagnated for years. Considering that the most sought after apartments are about 40 square metres in size, it becomes clear that the primary goal here is to buy real estate for holiday purposes or rent during the tourist season. The average price of a square metre in Kopaonik is about 2,200 euros. State authorities are investors in seven cities in Serbia and have announced the construction of 8,022 affordable apartments for members of the security forces. During this year, works began on the first 792 apartments in Niš, Vranje, Kraljevo and Kragujevac. They will also be built in Belgrade, where their maximum price will be 500 euros per square metre, as well as in Novi Sad and Sremska Mitrovica, where the price, as in other cities, will amount to a maximum of 450 euros per sqm respectively. Looking at all the figures, it comes as no surprise that one of the most frequently asked questions is whether the prices have reached their maximum. According to some estimates, there is a demand for close to 100,000 square metres of space in the Serbian capital than what is currently being offered, and such high demand pushes prices up even more. So, it is not surprising that, in terms of prices, Belgrade is fast approaching other big cities in the world. In the last three years, the purchase of apartments has increased by 35%, and about 21% are apartments bought on loan, so the prognosis is that the real estate market will maintain its momentum in the next two to three years. 

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LEARN TO SUCCEED CONFERENCE LEARN TO SUCCEED 2020 conference is organized by the Real Estate Cluster and it will take place from 22nd to 24th April 2020 in Belgrade

The LEARN TO SUCCEED CONFERENCE in 2019 – the Palace of Serbia (from left to right): Branislava Simanić, Director of the CCIS Entrepreneurship Sector, Damir Borić, President of the CCIS Group of Real Estate Brokers, Arsen Unanyan, President of the Russian Guild of Realtors, Vesna Kovač, State Secretary at the Ministry of Trade, Tourism and Telecommunications and Ana Gemaljević, Independent Counselor at the Ministry of Trade, Tourism and Telecommunications

AC T I V I T Y

he International Real Estate Conference LEARN TO SUCCEED, will take place next year for the fifth time, is aimed at real estate brokers (real estate agents and managers) and other real estate professionals (contractors, property managers, etc.).

Part of the programme is for real estate appraisers and property managers. Over 50% of the conference lecturers and panelists come from abroad and are among the leading experts in this field in their respective countries. The biggest trade association in the US and the biggest association

of real estate brokers in the world, the National Association of Realtors has over a million members in the US alone and more than 300,000 in 100 countries. Cooperation with this association is especially significant in terms of attracting foreign investors. The Real Estate Cluster is an ex-

clusive partner of NAR in Serbia. We signed a Bilateral Cooperation Agreement with NAR in Orlando in 2016. The National Association of Realtors (NAR) ( https://www.nar. realtor ) was founded in 1908 in Chicago. LEARN TO SUCCEED 2020 conference is organized by the Real Estate Cluster and it will take place from 22nd to 24th April 2020 in Belgrade. The members of the Real Estate Cluster will have a joint booth at the Building Trade Fair (SEEBBE), in Hall 1 of the Belgrade Fair. You can find more information about the conference here www. learntosucceed.rs . In 2019, the Real Estate Cluster held NAR's courses - REMB, SRS and ABR - in Serbia (Belgrade) and Bosnia and Herzegovina (Sarajevo and Banja Luka) with the support of IHC Global. The delegation of the Real Estate Cluster will partici-

pate in the REALTORS® Conference & Expo 2019 from 8th to 12th November 2019 in San Francisco. The REALTORS® Conference & Expo is visited by about 20,000 real estate professionals - 16,000 to 17,000 of them from the United States and about 3,000 to 4,000 from abroad.

ABOUT THE REAL ESTATE CLUSTER The members of the REAL ESTATE CLUSTER are companies and entrepreneurs engaged in real estate brokerage services, building design, and construction and lease of real estate in the Republic of Serbia. Two scientific institutions - the Institute of Economic Sciences in Belgrade and the Cluster Development Centre of the Faculty of Technical Sciences in Novi Sad – are also Cluster members. The main reason for establishing the Real Estate Cluster was to boost the competitiveness of its members and to regulate the

The 2020 LEARN TO SUCCEED conference is organized by the Real Estate Cluster

market. The Ministry of Trade, Tourism and Telecommunications of the Republic of Serbia has supported the establishment of the Real Estate Cluster in 2010 and since then has been helping with bolstering its competitiveness by introducing new technologies, training employees and facilitating the Cluster's participation in trade fairs and conferences in the country and abroad. The Real Estate Cluster has successfully implemented several programmes of the line ministry aimed at increasing the competitiveness of the domestic businesses in the services sector. The Real Estate Cluster initiated the establishment of the Serbian Group of Real Estate Brokers under the auspices of the Trade Association of the Chamber of Commerce and Industry of Serbia (CCIS). You can find more information about the Real Estate Cluster on its official Facebook Page: Klaster nekretnine - Real Estate Cluster. 

Prvomajska 22, 24000 Subotica +381 24 600 680 • +381 63 1041 128 cenzar@yahoo.com www.cenzarnekretnine.com • www.cenzar.rs

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ONE-STOP SHOP

We think that the recipe for a safe and successful business is providing a complete service to clients

CO R P O R AT E

dventis Real Estate Management d.o.o. was founded in 2011. Ervin Pašanović, Director of Adventis Real Estate, talks about the current situation in the market and forecasts.

What is the current situation in the real estate market in Serbia? — The real estate market has seen a steady increase in demand over the last three to four years, which certainly has had an impact on real estate prices. Such an increase in real estate prices is influenced by the fact that, at any given moment, in Belgrade, for instance, there is a demand for 100,000 square meters of living space more than it is currently offered, and everything that is built is immediately sold. As usual, the most expensive apartments are located in Vračar, Stari Grad and Savski Venac, with the newly built apartments in Novi Beograd not lagging behind much price-wise. Real estate turnover has increased by about 35%, with Belgrade in the lead. The main reason for the increase in turnover is the increase in the number of loan users, as a result of the banks reducing interest rates on mortgages. However, it is interesting to note that about 80% of home buyers do cash purchases. The prices of apartments certainly

E RV I N PA ŠA N OV I Ć Director of Adventis Real Estate

depend and vary from location to location, with Novi Beograd currently being the most interesting location. A number of new apartment blocks are being built here that are very appealing especially to younger buyers.

Could you tell us something about the trend in real estate prices? — It is estimated that this trend will continue in the next two years in both the residential and business sectors. There is room to reduce the cost of renting office space, given the fact that an additional 400,000 square feet are currently being built in A-class office buildings. The completion of the construction of these exclusive premises should increase the availability of office space, which will result in a decrease in the monthly rental prices in 2020.

Real estate turnover has increased by about 35%, with Belgrade in the lead

What trend do you expect to see in the future in the real estate market? — In the developed markets, there is a so-called “real estate cycle” that lasts, on average, 10 years, wherein the first half of the cycle, there is an increase, followed by stagnation and then a slight decline. When one cycle ends, a new one begins. The Canadian real estate market alone has not seen a decline, not even during the global economic crisis. We are optimistic and

hopeful about this market starting to resemble the Canadian real estate market in every way, and that housing prices will also fit the living standard of Serbian citizens.

What is your recipe for becoming a successful real estate agency? — We believe that the recipe for a safe and successful business is to provide complete customer service (one-stop-shop). We strive to find for our clients the desired real estate or secure the successful sale of the same, as well as provide a fair evaluation of the property, give recommendations which bank provides best loan terms and conditions and ensures a certain level of in sale and purchase transactions in the sale and purchase, and recommend the best law firm. In addition to the continuous improvement of our staff and top management, we also successfully follow global trends through the strongest professional organizations (the Real Estate Cluster, the National Association of Appraisers of Serbia, the National Association of Realtors, FIABCI, Group of Real Estate Brokers at the Chamber of Commerce of Serbia, etc.). Through the constant and active engagement, we strive to improve first and foremost ourselves, but also the market that has changed drastically in the last decade, all to the satisfaction of our clients.

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WE ARE TURNING WISHES INTO REALITY

A lot has changed in the Serbian real estate market in the last five years

he long-standing real estate experience of Predrag Dević, Director of Beoagent, has led to him establishing a company that has a comprehensive approach to real estate and to client satisfaction.

How demanding is the Belgrade market and how do you balance between wishes and financial capabilities of your clients? — The real estate market in Belgrade has become increasingly demanding lately and it is quite difficult to reconcile the wishes and financial capabilities of clients. Since we are a company that deals with commercial real estate, renting and buying of premises, office space, warehouse and production space and land for construction of residential and commercial buildings, many of our clients are foreigners who came here to start a business or invest in real estate which they subsequently rent out. Every day we try to match the wishes and capabilities of our clients so that both parties are satisfied and we get a good reference. What is the price/quality ratio for office and residential buildings? — Regarding warehouses and production halls, the price/quality ratio is best matched. In the last twenty years, a lot of quality office space has been built in Belgrade, especial-

CO R P O R AT E

ly in Novi Beograd, to which many companies relocated their offices from the old part of the city. There is a price difference because there is increasingly less parking space in the old part of town. Potential tenants also choose locations which have more parking space and from which they can easily reach the motorway. There was a lack of quality residential space for sale last year which has led to a slight increase in prices. As far as office space is concerned, it differs in quality and so do the prices, but there is office space to match any budget.

What would you advise future clients who are looking to buy or rent? — First of all, they should hire a professional or an agency to consult with and to see whether their financial capacity match their desires. If they are renting or selling real estate, they should be consulted on how to form a market price to quickly complete the transaction and, above all, how to be legally protected, which is the most important. A lot has changed in the Serbian real estate market in the last five years. The Real Estate Cluster was formed, a new Law on Real Estate Brokerage has been adopted, real estate agents are now licensed, cooperation with international associations of real estate agents, such as the NAR, has

P R E D RAG DEVIĆ Director of Beoagent

There was a lack of quality residential space for sale last year which has led to a slight increase in prices

been established, and the code of conduct for real estate agents has been written so our future clients can be certain that they will receive a professional service if they select an agency that belongs to the Real Estate Cluster or is registered with the Registry of Real Estate Brokerages at the Ministry of Trade.

Apart from providing real estate brokerage services, you also do complete real estate adaptations. Could you elaborate on this and also tell us how did you manage to tie the two services together? — When a client moves into a real estate, they have to adapt it to their particular activity. Concerning warehouses and production facilities they sometimes have to install new electrical and water supply equipment, expand or reduce office space, move partitions, etc. In regard to residential facilities, there is always something to be painted, some detailed work to be done, furniture to move around, apartment to be cleaned, etc. Oftentimes, clients don’t know which company to hire to do this, or the ones they hired are not professional enough and don’t adhere to deadlines. This is why we decided to form a team who can meet our clients’ requirements in the shortest possible time and in a professional manner. Such services are supplemental to our core business. 

BEOAGENT NEKRETNINE Tel. +381 63 317 170 · Viber, WhatsApp +381 63 317 270 · www.beoagent.co.rs · www.beoagent.rs

R E A L E S TAT E I N S E R B I A

DREAM TEAM Serbian real estate market has been experiencing continuous growth in the past three years with the increase in prices of around 30%

CO R P O R AT E

e talked with Miroslav Cvetković, Director of Cvetković-Roškov Nekretnine, about the real estate market.

What is the secret of your market longevity considering you were established in 1996? — The very beginning of our real estate business was based on huge optimism and great belief in ourselves. As very young and ambitious, my brother Milan and I began running the agency, with a great desire for success. We didn`t know it back then, but most realtors hoped to be where we are today, which is a result of hard work and constantly adapting to the market. This dream team that serves our clients is composed of over 20 top notch licensed real estate professionals, who constantly attend training sessions which is one of the fundamentals in our business strategy. Having a great personal database of sold and leased properties in Serbia, price trend per sqm, price index in various municipalities, and by noting all the changes that have occurred and are relevant to sales or evaluation, we are capable of determining realistic market prices, both for sale and lease, and the

yield, which enables us to help our clients in all their investment and business decisions.

So, how does such way of doing business coincide with the real estate market in Serbia? — Every successful company needs a healthy, well-regulated market. We gave our full contribution through our guild associations to adopting the real estate law in Serbia, in organizing numerous international conferences and educational seminars in order to lift the bar of services rendered. I started implementing the model of the latest and best worldwide practices in November 2015, while attending the NAR (National Association of Realtors) Conference in San Diego, USA, thus becoming first Serbian Realtor to do so, along with my two colleagues from Niš. One of the important segments of your business is certainly the cooperation with the leading banks in Serbia. Can you explain what the collaboration is all about? — One of the essential segments of our business has been the ongoing cooperation with leading banks in Serbia, in order to ensure better and faster transactions for our customers relating to mortgages.

M I RO S L AV C V E T KOV I Ć Director of CvetkovićRoškov Nekretnine

The prices will most probably remain within the current range with a deviation of not more than 2-3%, at least until 2021

You've been in this business segment for a long time. What are your expectations for the coming period in terms of the direction that the Belgrade market will take? — After almost a decade of price fluctuation due to the world economic crisis and market`s recovery, the Serbian real estate market has been experiencing continuous growth in the past three years with the increase in prices of around 30%, due to historically low interest rates on savings, extremely favourable mortgages, and most importantly, economic growth that led to increase in salaries. The number of investments in both residential and commercial properties, last year`s increase of 5% in number of issued building permits, and a 15% increase in sqm built, give us enough reason to believe that this trend will continue. The prices will most probably remain within the current range with a deviation of not more than 2-3%, at least until 2021. Do you think you'll be able to offer exclusive real estate in attractive locations from all over the world in the near future? Can you tell us more about that? — As a member of NAR I have a privilege to associate with top Realtors from all over the world. We are all bound by the Code of Ethics; the highest level of moral commitment in our industry. Their quality offer worldwide is available to all my clients who wish to purchase real estate in any part of the globe..

R E A L E S TAT E I N S E R B I A

THE MARKET IS EXPERIENCING A GREAT EXPANSION

Our development is based on the constant, high-quality training of our agents and the implementation of new technologies in the real estate business

ounder and Director of the Feniks Sistem real estate agency, Nebojša Rapaić talks about the current situation in the real estate market and the company's plans. Feniks Sistem was founded in June 1993 in Belgrade. Driven by the vision of its founder and the overwhelming desire for success by the entire team, soon after the inception, the agency started expanding, both in terms of human and technical resources and market representation. For many years, Feniks Sistem has been occupying one of the leading positions in the real estate market.

Feniks Sistem was founded 26 years ago. How did you manage to be present in the market for so long? What sets you apart? — Although at the time of its inception, Feniks was just one of many real estate agencies in Belgrade, we had a clear goal from the very beginning - to be among the best! Our development is based on the constant, high-quality training of our agents and the implementation of new technologies in the real estate business. We were one of the first agencies to develop a networked computer system with a unique real estate database and original software for the database, which has become the norm in our business. Also, we realized on time just how powerful media appearances can be, in terms of advertising in

CO R P O R AT E

N E B O J ŠA RA PA I Ć Director of Feniks Sistem

Our development is based on the constant, high-quality training of our agents and the implementation of new technologies

print and electronic media. After 26 years in the real estate business, Feniks is still one of the best and most reliable real estate agencies.

The real estate market in Serbia, especially in Belgrade, has been expanding for the past two and a half years. What are your expectations for the coming period? — Yes, the market is experiencing a major expansion and real estate prices match those in the biggest cities in the world. This trend will continue for several reasons, the most important being: increased demand for housing and high-quality of new buildings, but also very favourable interest rates, which means that bank loans have never been so affordable as they are today, which, in turn, contributes to the increased number of mortgages. All of this has resulted in a sharp increase in real estate prices. This is especially noticeable in Belgrade, where, at any moment, there is a shortage of 100,000 square meters of living space and where every new building is sold out as soon as it is built. Real estate prices are rising in the region, as well as in Europe and around the world, and we expect this trend to continue in the coming period. You participated in drafting the Law on Real Estate Brokerage Services. What do you think of the legislative framework that regulates this segment?

— The Law on Real Estate Brokerage Services is one of our most important achievements. It has not been easy or simple to fight to have it, but we can now say that we have had the legal framework that directly regulates the real estate business since 2013. The implementation of this law has greatly contributed to combating shadow economy in selling and leasing real estate, with the real estate agents now having their own Register, which is available on the Ministry of Trade's website. By accessing this Register, clients can check whether the real estate agency they are dealing with is registered and whether its agents are licenced. Of course, as with all other laws, certain deficiencies were noted during the implementation, which will be eliminated in the coming period. Therefore, the legislative framework does exist, the implementation has shown good results, and the corrections that will be made will ensure an even better service for our clients.

What are your plans for Feniks Sistem? — We insist on constantly training our agents, we plan to expand our business and open new branches, and we have a rounded off system of real estate brokerage services and construction. We want to continue to improve our business and remain on top of the game. For us, the sky is the limit! 

R E A L E S TAT E I N S E R B I A

NIŠ FOLLOWS IN BELGRADE’S FOOTSTEPS I expect that more and more foreigners and people from our diaspora will invest in Niš because of the good return on investment

CO R P O R AT E

he Riznica real estate agency was founded in 2004 in Niš. We spoke with Slaviša Pešić, Director of Riznica Nekretnine, about the current situation in the property market in southern Serbia.

What is your assessment of the situation in the real estate market in Niš relative to Belgrade? — The real estate market in Niš has been intensifying. There is a growing demand for new apartments, but also office space and other types of real estate. In this, Niš is probably similar to Belgrade, not in quantity but tendencies. Considering that Niš is a university centre, a city with a growing number of foreign investments and that it has all the amenities characteristic of an urban centre, including the increasing number of flights from Niš Airport, it is understandable that the demand for real estate is growing. On the other hand, real estate prices are much more affordable than they are in Belgrade, which is why I think that the attractiveness of real estate investment in Niš will continue to grow in the coming years. Which clients are most interested in buying and renting property in southern Serbia?

— Since Niš is the largest centre of southern Serbia, it is normal for people in the region to buy real estate here. I expect that more and more foreigners and people from our diaspora will invest in Niš because of the good return on investment.

You were the first Realtor® in Serbia and Ex-Yugoslavia countries and you initiated the networking with the World's biggest association in Real Estate - The National Association of Realtors® (NAR®) which operates in 85 countries. Could you tell us more about that? — After giving our contribution to the adoption of the Law on Real Estate Brokerage as members of the Real Estate Cluster and the Group of Real Estate Brokers Group in the CCIS, I came to a conclusion that we had to do more to improve the knowledge of real estate agents and apply best practices from around the world. I contacted the leadership of NAR®, which is the largest association of real estate agents in the world. In its 100 years of existence, this association has developed a system of work that ensures the highest level of real estate services in the market while the providers of real estate services have to adhere to

d r S L AV I ŠA PEŠIĆ CIPS, ABR, SRS, RENE Director of RIZNICA Realty, Niš NAR® Board of Directors

Also, our legislation, and for the most part, the practice in our country, is reaching the level that encourages investors from all over the world to buy in Serbia

the code of ethics, rules and tools of the Association and thus are more successful in business. We collaborate to make it easier for clients to sell and buy real estate wherever a Realtor® is located. Some of international designations I gained so far are CIPS (Certified International Property Specialist), ABR® (Accredited Buyer Representative®) and SRS (Seller Representative Specialist). I am fortunate that, as an Authorized Lecturer, I have been able to help other colleagues in Serbia and the region to become Realtors® and obtain some of these certifications and designations by attending courses organized by the Real Estate Cluster.

You attend real estate conferences around the world. How much does our market follow global trends? — I think our market has progressed in some respects in recent years and that we are already reaching an enviable level of security in real estate brokerage. I am primarily referring to the use of notary public, the procedures relating to the sale and purchase of real estate and the registration with the Real Estate Cadastre. Also, our legislation, and for the most part, the practice in our country, is reaching the level that encourages investors from all over the world to buy in Serbia. 

RIZNICA Niš · Tel. 069 1 999 406 · E-mail: riznica2004@gmail.com · www.riznica.rs

R E A L E S TAT E I N S E R B I A

Belgrade lacks more than

100,000 square meters of residential space

82%

The most

EXPENSIVE apartments will be those in VraÄ?ar, Stari Grad and Savski Venac

Low degree of availability of free offices, which is currently below

There are currently 485,000 m2 of A-class office space in Belgrade at the moment. More than

95%

of A-class office space is located in New Belgrade. Office space occupancy in Belgrade is 96%

of residential units are sold for cash

At the moment, on top of the existing

450,000 square meters in office buildings, a new

140,000

square meters of A-class office space is being built

THE EXISTING 150,000 square meters in Belgrade will be supplemented with another 34,000 square meters in 2019 and 137,000 square meters in 2020, by which we mean modern shopping centers

In 2019, the key thing will be to attract new buyers to all SEE countries, focusing on

OFFICE SPACE

R E A L E S TAT E I N S E R B I A

LOCATION CHARACTERISTICS

FACILITY SPECIFICATIONS

Along the highway E70, close to Simanovci loop.

KLP I: 20000m2

10 km away from Belgrade, at the western entrance to the city. 12km distance from international airport Nikola Tesla. Direct contact with Belgradeâ&#x20AC;&#x2122;s public transportation, bus no. 711. Industry area: next to West Balkan Machinery, Bosch, Atlantik Group, Phoenix, Agena Technology, Sika.

Divided into 9 modules FM Global and LEED construction standards Premium brands of materials Maximum space functionality and business flexibility Optimum operating costs

office@klp.rs | www.klp.rs 39

MPC PROPERTIES

SUSTAINABLE REAL ESTATE PLATFORM  FOUNDED IN 2002  MORE THAN 30 PROJECTS, THAT HAVE BEEN ESTABLISHED SINCE THE COMPANY FOUNDATION C URRENTLY INVESTING 250 MILLION EUROS IN NEW DEVELOPMENT PROJECTS  NEW DEVELOPMENTS ARE IN TOTAL 221,000 SQM OF GBA  PROJECTS ARE LEED CERTIFIED