How do foreigners buy real estate in Serbia? – Business & EconomyEnglish
More and more foreigners decide to buy property in Serbia.
Ilustracija: Bogi.Knips / Shutterstock
Home loans are approved even to non-residents, but with slightly higher interest rates than to Serbian citizens.
A wider range of real estate and attractive locations make new developments in Belgrade attractive to foreigners as well. It is true that they mostly buy on cash, but commercial bankers have not missed this upward trend, so they have already offered a special offer of home loans for non-residents.
“Regarding the loan documents, it is pretty much the same as for our clients, and also for Serbian citizens who apply for loans here in Serbia, the risk assessment we do is based on the income and supported by relevant employment contracts. the loan is the property that the customer buys with a mandatory down payment, ”it was explained for the national RTS.
Clearly, the pandemic has not affected the construction industry – real estate purchases increased by 2% last year alone and construction turnover by 8%. The average price per square meter is on the rise; 75% of all closings are made for cash.
“It is stipulated by law that only those countries which have reciprocity with the Republic of Serbia, their citizens can become owners of real estate in Serbia. To name the countries where there is no reciprocity and therefore no possibility of ‘buy real estate: Macedonia, Iran, India … At the moment, between 10 and 15 percent of our tenants are non-residents, “said the commercial department of Belgrade Waterfront.
The Russians and the Chinese buy the most real estate abroad. Russians, for example, can now take out a loan in Serbia as well, under conditions similar to those they receive in their country, and we also offer luxury apartments to suit their needs.
All this raises the question of whether it is sustainable, with current regulations, to expect our cities to take on the diversity of the population like New York or London.
“We do not have regulations stating a real estate value as a prerequisite for obtaining residency. However, such provisions can be found in around 70% of the countries in the world. Many foreigners decide to buy. and to invest in real estate in these countries because they are interested in having a residence, “to educate their children or to seek treatment. This especially applies to people from third world countries”, explained M Nenad Djordjevic of the real estate company Cluster.
The Greeks have a program called Golden Visa which guarantees permanent residence to those who invest more than 250,000 euros in real estate. Americans guarantee permanent residence to buyers of real estate worth more than a million dollars.