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H2 2015

5% according to the same period last year.9%. In February started mild growth of 0. UNEMPLOYMENT The unemployment rate in the Q3 of 2015 amounted to 16.485 RSD (420 EUR) and it was similar as the last year.3% according to the same period last year. At the last meeting of the NBS Executive Board on October 14th. which represents a decrease of 3. Average nominal net salary in the Republic of Serbia in Q4 was 51. which represents a growth of 5.0% according to the same period last year. The whole extrenal trade between Republic of Serbia for NET FDI the period of January – October 2015 is: 3. In Q2 economy achieved growth of 1% and in Q3 2. External trade deficit for this period is 3. The export of the goods was 10. compared with the same period last year.0 billion EUR and the estimated net income SDI for 2015 was 1.7% comparing to the same period last year.8%.5 percent . and decreased by 14% compared to 2014. is arround of 4% of the budget and it will be on level of 1. In period january-august the estimated income of Foreign direct investment (FDI) was 1. CPI Yoy inflacion during the first and the second quarter this year continued to decrease under the lower acceptable limit. was 1. Projection of deficit for 2015. the reference interest rate was reduced by 0.2bn dollars. Growth continued in March when inflation reached the level of 1.5% which is considered as the best result. and it represents a growth of 8.3 billion EUR.53 million eur.5 millon eur.7%. According to NBS.051. yoy inflation in January 2015 recorded a minimum value of 0. while comparing to the third quarter it increased by 15%.1%.8%. Macroeconomic indicators GDP The real decrease of gross domestic product in the first quarter of 2015. In the last months of the year yoy inflation was 1. The import was 13.05 millon eur.5 millon eur – growth of 6.2%.5 percentage points to 4.

out of which Class A amounts to 63% and Class buildings in CBD zone in range EUR 15 -17 per sq m B to 37%.8. With adjoining 3rd IT and Banking sector remained the main drivers of phase whole project will comprise total of 27. the slight increase in vacancy rate is 12.000 Speculative Q1 2016 Underconstruction "2100" New Belgrade expected in following two years.500 Speculative 2016 Pipeline offices" (phase 1) Mutapova st. project with an area of 8. while for 10.000 sq m GLA has started with construction in Q3 2015.5% . New Belgrade 20. Rental levels At the end of H2 2015 total modern office stock of During H2 2015 rental levels remained stable Class A and B comprised the total of 600. New Belgrade 8. Zorana Djindjica. MPC "Navigator Block 43. pipeline projects. Second phase of Fortyone renewals amounted to 5% of total gross take-up.000 Owneroccupation n/a Pipeline Headquarters Immorent "Sirius Block 43.981 Speculative Q1 2016 Underconstruction building Belgrade Bvd. GLA. levels of 8.000 Owneroccupation Q3 2016 Underconstruction Delta Holding Block 20. New 2. GLA. New Belgrade 18.600 Speculative Q4 2016 Underconstruction Business Centre" Deneza office Tosin Bunar. Vacancy rate PIPELINE OFFICE PROJECTS Rapid absorption of modern office space and limited Project / Area Delivery Location Purpose Status delivery of new office completions resulted in Investor (sq m) date GTC "Fortyone" continual downward trend of vacancy.000 Speculative Q3 2016 Underconstruction of 5% at the end of H2 2015. Office market Supply Demand During H2 2015 Belgrade market witnessed delivery of When analyzing market activity.75%. while for Class B in range EUR 11 -13 per sq m GLA. reaching level (phase 2) Block 41. Granit Invest 2.000 Owneroccupation Q1 2016 Underconstruction New Belgrade EDB Block 32. Pipeline Modern office stock is expected to increase in the Yields following period due to future office development Estimated prime office yields decreased ranging at arrivals majorly within New Belgrade CBD zone.000 sq m demand growth in the office real estate market. Due to the announced Airport City Airport City complex.000 sq m GLA. New Belgrade 14. New Belgrade 5. during H2 2015 it one Grade A office building – 1st phase of GTC was dominated by net take-up recording share of Fortyone project enlarging total modern office stock 85% for new lease and 10% for relocations. Societe Generale 11.700 Speculative Q1 2016 Underconstruction Downtown area .000 sq m recording prime asking rents for Class A office GLA.

Serbia still have the in Subotica with total area 10. m on the market but MPC Properties start construction of first retail park despite of that with figure of 61. DM. Belgrade 2015 and Aviv Park in Zvezdara in November 2015. Zrenjanin supermarket Idea left and now works as a community center with several large and small Pipeline tenants such as Forma Ideale. Takko and Jysk. Shopping with 32. Aviv Arlon Holding the Israeli investor company has been open two retail projects Aviv Park in Zrenjanin in October Picture: Aviv Park. Capitol Park Rakovica.000 new sq. and completion is expected in the first half of 2017. It is almost 35. The company Plaza Centers Serbia announced that Work on the construction of a new retail center in they received a building permit for construction of a Nis "Stop Shop" well underway.000 population) in Central and Eastern Europe. Retail market Supply Retail stock in Serbia is estimated at 790. joint investment of the British company 'Poseidon Group' and the Belgian 'Mitiska REIM'.000 sq m of GLA.500 sq m. Višnjica.000 sq m.000 sq m. Construction began in October 2015. Belgrade Plaza opening is expected in April next year. Zvezdara. Extra Center Idea changed the concept after Picture: Aviv Park.000 sq m. Modern shopping center stock in Belgrade is estimated at 260. New opening were announced for 2017 from Avital in cooperation with Ashtrom International Israel for shopping center Rajiceva. GLA of this mall will be 16. will be build as a series of ground-level shops million and is located in Visnjicka street near the and it is located on the site of a former motel River Danube. . lowest density (GLA/1.335 GLA is an investment worth EUR 80 center. with completion and shopping mall in Belgrade. The starting of construction works are expected in 1Q 2016. will be the largest retail park in Belgrade and the first destination for shopping and entertainment in the municipality of Rakovica. “Median". whereas the prime shopping center stock is 128. Retail parks in H2 2015 remain the most developed sub-sector for investors due to the fact that make most of retail investments in Serbia.

is with rents of secondary location and these range from EUR 10 – 25 per sq m per month. while in retail parks they vary from EUR 7 . Only prime units are leased in short time. The same situation several tenants in less then a year.5% for prime shopping malls and 9 – 9. Average monthly rent in prime shopping centers has decreased and now stands at EUR 26 per sq m. which Some of the anchor tenants agree to pay only have been developed in the last several years. 80 70 60 50 Big units 40 Small units 30 20 10 0 Shopping Retail Park Prime . . for street retail.5% for retail warehouses. international retailers is for retail park projects. while the average ones Rents for prime locations in Belgrade range between remain vacant for a longer period of time or change EUR 30 – 80 per sq m per month. due to percentage of a turnover as monthly rent without the lowest costs of leasing space in such projects. In Demand shopping malls rents range from 15 to 60 EUR per sq m. Investment company Atterbury Europe took over one-third share of one of the largest Serbian companies for real estate development. Retail market Rents Market activity in retail sector is likely to continue to benefit from investors interest for new projects. only one new international brand LC 90 Waikiki entered the Serbian market.25 per The strongest demand amongst both local and sq m depending on the size and position of the shop. Retail brands Average retail rental levels In 2015.High Secondary centers Street Retail Street Retail Source: Danos Research Yield Investments / Acquisitions Yield remains stable at 8. there is a slight demand. MPC Properties. As minimum rent set.

m and approx. m. 300 residential units. with 194 At the moment the biggest part of the ongoing residential units and 350 garages.000 sq.000 sq. the start of construction is scheduled for construction as well as a number of office buildings January 2016 and completion is scheduled for Jun constructed in that part of town from 2007 till today. The investor is excellent infrastructure. New Belgrade According to available data. Residential market Supply and pipeline Construction of the complex called Sun City in Block In recent years Novi Beograd has been very 63 at the corner of Jurija Gagarina Street and attractive for investors due to its good position. projects are located in New Belgrade. . The total area is 33. Picture: Sun City. the total number of sold apartments in Belgrade is 8102 and the largest number of sold units in the second half of 2015 relates to the Novi Beograd and Vozdovac. Gandijeva Street has been announced. 2017. spacious areas for Energogroup. Construction of the first two residential buildings in the project Belgrade on water has begun on September with the total area of 68.

Senjak and Dedinje are still first choice for luxurious apartments and houses while Novi Beograd increasingly meets the demand of foreigners employed in multinational companies whose headquarters are in New Belgrade. For projects that are characterized by a higher quality of construction (mid -end). Growing interest shown during September and October and concerns small housing units in the center of town while demand for larger and more luxurious units in exclusive parts of the city remained at the level of the first half of 2015. Residential market The demand for rental housing in the second half of 2015 remained at the previous level. the selling price for most attractive municipalities are in range between 1. in H2 2015. For other parts of the city the highest number of transactions was in the municipality of Vozdovac and Zemun.200 EUR / m2 and up.200 EUR / m2. the sales prices of apartments have remained unchanged in comparison to the H1 2015. Sale prices According to the available data. even a 50- 60% has been sold in the initial stages of construction. In the previous period the demand for the purchase of housing in New Belgrade is increasing and follows the trends of the first half of 2015. The Picture: BW Residence. Such is the situation for all stages of ABlok. Savada and a new residential complex called Sun City. .600 and 2. Belgrade existing offer on the market is diverse and can meet the requirements of potential tenants according to Demand their abilities and needs.end) is 2. while the starting price of luxury residential building projects (high . The reason for this is the modern and high-quality projects that are built or in the stages of construction. In addition with this is the fact that a large number of apartments.

distribution and • Older facilities with lack of modern features transportation companies.000 • Logistic facilities continue to develop in wider territory of Belgrade in the closer area of the highway E75 and E70. Novi Sad Regional city zone suburbs Dobanovci. manufacturers. Triumf bis Distribution Zrenjanin Truck-Lite Europe Production Ćuprija • During H2 2015 was recorded lack of modern Al-Rafideen Production Leskovac logistics facilities. • Despite of slow economic recovery development of logistic facilities remains positive.000 Svarovski Production Subotica 15. Vacancy Occupancy POPULAR LOCATIONS FOR LOGISTIC FACILITIES DEVELOPMENT Average rental rates 5 4 3 2 1 0 Belgrade Belgrade Šimanovci. cities Krnješevci .000 Vibak Production Jagodina 70. achieve lower rental level. Investor Distribution/production Region Lidl Distribution Nova Pazova • Development of industrial facilities has been more Gomex Distribution Zrenjanin extensive than development of logistic facilities. Industrial and logistics market Supply Finished developments Investor Distribution/production .000 and growing retail sector.000 country. while industrial facilities Announced continues expansion in smaller regional cities. Leoni Production Niš 25. retailers. Region Size (sq m) • Industrial market has been influenced by Gebruder Weiss Distribution Dobanovci 9. export-import policy of the Johnson Electric Production Niš 10. Rental levels Demand • Rental level for prime stock remain stable in • Strong demand for logistic facilities comes from the second half of 2015.000 economic situation. quality of the transportation network DM Drogeriemarkt Distribution Šimanovci 5.

supply of state owned 200 agricultural land stood at 830. out of which arable land Eur/he/year occupies 3.127 6 5 hectares which recorded increase of 0. arable land market is most active Banat Banat within Vojvodina area predominantly in Srem.2 market of state-owned agricultural land. 30% of total area 0. • Traditionally.year 2015 .45 hectares per capita 500 respectively.8% 4 compared to 2014. 1. which results in 0.6 can be leased to potential investors on a period 0. corn. 0. 400 300 • At the end of H2 2015.2 • Investment in agricultural land certainly 0 represents the safest way of investments. wheat.3 mill hectare. Sales Prices Banat and Bačka.000 29% 540.000 Serbia 560.8 According to new regulations.000 Western 570. Eur/sq m • Adoption of Law on agricultural land in Q4 2015.4 up to 30 years. 100 0 Demand and trends Bačka Srem Northern Southern • Traditionally. 1 0.000 hectares.06 mill hectare of agricultural area. (t/he) • The total sown area in H2 2015 is 737.year grassland) average . • Size of agricultural land is one of the most important factors of its value. 3 2 Sown area with wheat in the fall of 2015 (he) 1 0 590.70 600 hectares and 0.000 Cultivated land (arable land.4 contributed to further expansion of rental 1.000 Northern Belgrade Vojvodina Southern Šumadija Serbia area Serbia and 580. sunflower and soybean are the most common culture on arable Wheat yield agricultural land in Serbia. orchards and vineyards) 550.000 71% Grassy areas (meadow and ten-year 2014 . Agricultural Market Supply Rental Rates • Serbia has total of 5.

Senior Consultant Valuations and Advisory Dept.pavlovic@danos. sinisa. Senior Consultant .rs DISCLAIMER This report is published for general information only.DANOS | An Alliance Member of BNP PARIBAS Real Estate Ivan Simic Miljan Pavlovic Country Manager Associate Supervisor- Advisory sanja. analysis. Serbia Sanja Baštić Tel: + 381 11 2600 603 Consultant Mirjana Mandić Fax: + 381 11 2601 571 Agency Dept. Consultant .rs and Investment Advisory Jovan Ciric Contact us: Head of Agency Siniša Trifunović Agency Dept. www. Ivana Grsic Office Manager Milan Krstanovic www. 3.bastic@danos.trifunovic@danos. no legal responsibility can be accepted by DANOS or BNP PARIBAS RE for any loss or damage resultant from the contents of this and Investment Advisory Dept. www.ciric@danos. Spanskih boraca Street. Although high standards have been used in the preparation of the information.danosresidential.files.Valuations and office@danos.Valuations Email: office@danos.jpg?w=640&h=400 .Valuations jovan.simic@danos. Reproduction of this report in whole or in part is allowed with proper reference to DANOS Research. As a general report this material does not necessarily represent the view of DANOS or BNP PARIBAS RE in relation to particular properties or 11070 New Belgrade. and projections presented in this report. Front page photo source: Administration Dept. milan.mandic@danos.

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