Real estate and investment trends across Southeast Europe

The real estate sector in Republika Srpska is experiencing a significant slowdown. Data from the Republic Institute of Statistics shows a 23.4 percent decrease in building permits issued in September compared to last year, and a 31.4 percent drop compared to the 2025 average. Experts attribute this to declining purchasing power, a lack of construction workers, and reduced interest from the diaspora.

In Croatia, discussions regarding investment and taxation are prominent. The government is planning to introduce the Croatian Investment Account (HIR) in early 2027, which would allow citizens to invest in stocks, bonds, and ETFs with tax advantages on interest and dividends. Meanwhile, the city of Zadar is proposing a tiered property tax system to discourage the use of apartments for short-term tourist rentals and encourage long-term housing.

In Serbia, a trend is emerging where families are moving to the outskirts of Belgrade, such as Barajevo and Lazarevac, seeking more affordable housing. In these suburban areas, property prices are notably lower than in the city center, with some areas offering square meter prices below 1,000 euros.