Regional Overview: Limited Development and the Growing Importance of ESG Standards

In major CEE cities, vacancy rates are gradually declining. Tenants are increasingly turning to modern, energy-efficient, and sustainable buildings, showing that ESG has become a key factor in choosing office space. At the same time, new development remains limited – with only around 250,000 to 300,000 square meters of new offices expected annually, which is relatively low compared to demand growth.

Belgrade and Serbia: A Market That Holds Its Value

Serbia follows regional trends but with its own specifics. Belgrade has stood out for some time as one of the markets with the lowest vacancy rates in the region – around 3%. This means that high-quality offices, especially in central urban areas, are almost immediately absorbed. Prime rents in the city center currently stand at around €19 per square meter per month, and demand is expected to remain strong throughout the second half of the year.

Beyond Belgrade, cities such as Novi Sad and Niš are gaining more attention, particularly from the IT sector and international companies seeking modern infrastructure – though supply still lags behind their needs.

New Tenant Habits

Companies are no longer simply looking for “extra square meters.” Instead, the focus has shifted toward quality space:

  • Location – central districts and business hubs remain the top priority.

  • Flexibility – rising demand for coworking and flexible spaces, especially from startups and smaller teams.

  • Sustainability – buildings with energy certifications and modern systems have a clear advantage in negotiations.

What Does This Mean for the Local Market?

For tenants – now is the time to plan ahead and secure quality space before it becomes unavailable.
For investors – this is the right moment to invest in new or refurbished projects, particularly those offering ESG standards and flexible layouts.

One thing is certain: while the residential real estate market shows signs of cooling, the office segment in Serbia continues to hold its value and attract both tenants and investors.