Office Space Market
The following market overview was prepared by the Colliers International office in Serbia. At present, their reports cover the Belgrade office market trends only.
Supply
The total supply of speculative office space in Belgrade has increased by 40% since the end of 2005, bringing total speculative office inventory of Class A and Class B office space to nearly 270,000 sqm. Compared to the Class B market segment, the growth in Class A inventory was significantly higher in 2006 and currently totals around 145,000 sqm. Urban (re)development in the downtown city area remains rare, with New Belgrade being the primary choice for new office development. During the past year, New Belgrade alone accounted for almost 90% of new Class A and 80% of Class B developments.
Vacancy Rates
The Class A vacancy rate for multi-tenant/speculative developments is 9%, while the overall Class A and B vacancy rate in Belgrade is 11.7%. Available Class A and B office space for rent at the end of the year totaled slightly over 20,000 sqm.
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Forecast
As a result of the continuing economic recovery in Serbia, the supply of office space is expected to remain robust during 2007. Along with the expected increase in demand, more and more office projects are being announced for the coming years.
The actual average weighted rent for Class A office space recorded a 7.5% decrease over the last year. The most expensive Class A space in the city is still in the central portion of new Belgrade, where the average net rent is €22/sqm/month. Class B office buildings command rents between €11 and €17/sqm/month, depending on the building age, location, parking availability, and other amenities. Converted space averages €10/sqm/motnh.
Source: Colliers International, Serbia
