In the past 10 years, Serbia’s commercial property market has started its transformation toward a more modern and sophisticated sector. Many observers consider Serbia to have high potential both in terms of its ability to attract significant foreign direct investment (FDI) from corporates as well as direct investment into property. However, a range of issues will need to be addressed if Serbia is to realise its full potential, including government bureaucracy, its unstable currency, its relatively poor infrastructure and a lack of market transparency.

Working toward EU accession should give the country an extra boost to pull it in line with other emerging countries across central and eastern Europe, but this is unlikely to be a quick and straightforward process.

BOUNCING BACK

Economic growth in Serbia is expected to bounce back to pre-crisis levels in the coming five years. Between 2004 and 2008, Serbia devel