In recent years, the real estate market in Serbia has shown a unique trend: the vast majority of transactions are made in cash. According to data from the
Republic Geodetic Administration (RGZ), in the fourth quarter of 2024, 89% of all real estate transactions were paid in cash, including 76% of apartment purchases. In Belgrade, this figure was 70.4%, and in Novi Sad, 71.8%.
Experts identify several factors contributing to the high level of cash payments in the real estate market:
Limited access to mortgage lending: High interest rates and strict bank requirements make mortgages less accessible to many citizens.
Savings and investments: Citizens with savings prefer to invest in real estate, considering it a reliable way to preserve capital.
Financial support from relatives: Buyers often receive funds from family members or from the sale of inherited property.
Some analysts are concerned that the high level of cash payments may indicate attempts to legalize income of dubious origin. However, according to experts such as Alexander Radivojevic, most real estate transactions in Serbia are legal, and it is incorrect to link them to money laundering without sufficient grounds.
Impact on the real estate market
The prevalence of cash payments has a significant impact on the real estate market:
Rising housing prices: High demand from cash buyers contributes to rising real estate prices.
Reduced housing affordability: For citizens who do not have significant savings, purchasing a home becomes less affordable.
Declining role of mortgage lending: Banks are facing a decline in demand for mortgage loans, which may affect their lending policies.
To ensure transparency and stability in the real estate market in Serbia, the following is recommended:
Improving access to mortgage lending: Developing programs with more favorable terms for borrowers.
Strengthening control over financial flows: Improving the effectiveness of monitoring large cash transactions.
Improving financial literacy among the population: Informing citizens about the advantages and risks of different methods of financing home purchases.
Source: https://t.me/relocationrs/1032
