Delta Real Estate Group, a regional leader in real estate development based in Belgrade, manages the InterContinental Hotels in Ljubljana, Crowne Plaza and Indigo Hotel in Belgrade, and more recently, the Radisson Collection-Old Mill in Belgrade.

“Our hotels are of a high category; they are part of well-known international chains, and therefore taking over the Old Mill Hotel in Belgrade, under the Radisson Collection brand, represents a logical continuation of our strategy,” said Andrej Sovrović, director of the hotel business at Delta Holding.

The post Delta Real Estate Group Takes Over Radisson Collection Hotel In Belgrade appeared first on CorD Magazine.

Our country’s real estate market has been characterised over the last few years by its outstanding resilience and constant growth in demand for almost all types of real estate – land plots, flats, houses, business premises, garages etc. It appears as though real estate, which is considered the “most conservative” type of property, is being treated as a relatively secure form of investment, which is why there is a growth trend in the number and value of transactions on this market.

The amount of money circulating on the real estate market last year was as much as 90% higher than it had been prior to the outbreak of the pandemic, having increased from four billion euros in 2019 to 7.6 billion in 2022. It should also be noted that the number of sales contracts also increased during the same period, albeit to a much lesser extent (33.7%). It thus follows that real estate prices increased significantly in the 2019-2022 period. It could be calculated that the average value of a single transaction (sale-purchase) increased from 38,000 euros in 2019 to 54,000 euros in 2022 (representing growth of 42%). Over the course of 2022 alone, the amount of money circulating on the real estate market increased by 24.6%, while the number of sales contracts was up by “only” 1.8%. At the same time, growth in the number of contracts was higher in both 2020 (2.3%) and 2021 (28.4%).

The largest share of the total volume of monetary transactions is held by residential apartments (around 55%). The increase in the value of transactions in this segment is a consequence of increasing prices far more than it is a result of increases in the number of realised sales contracts. According to the data of the Statistical Office of the Republic of Serbia (RZS), the average price of newly constructed flats was 11.7% higher in the first half of 2022 compared to the same period of the preceding year.

Regardless of the slowdown in the dynamics of realised salepurchase deals, for now investors aren’t reducing their activities, or at least have no plans to do so, judging by RZS data on the number of building permits issued and apartment constructions completed

What is noticeable is the decline in the share of apartment purchases using bank loans. After the record level in the last quarter of 2020 (32.7%), there was a successive decrease in the share of payments for apartments from loans for eight consecutive quarters, and in the fourth quarter of 2022 it fell to “only” 20.9% . This is aligned fully with the trend of increasing interest rates on housing loans in the observed period (2020-2022). At year’s end 2020, the average interest rate on this type of euro-indexed loan was 2.63%, while two years later (year’s end 2022) it had reached the level of 5.11%. Considering that loans for purchasing apartments had become even more expensive by this January (5.42%), we should expect a slowdown in borrowing for this purpose among citizens.

Regardless of the slowing dynamics of sales, investors don’t seem to be reducing their activity. According to RZS data, the number of apartment constructions completed in 2021 was 14% higher than in 2020, while the number of building permits issued for apartments under construction in 2022 increased by 14% compared to 2021. It can thus be expected that the number of new apartments will increase under similar dynamics in the period ahead. Important questions that impose themselves here relate to the origins of the money of those purchasing new apartments for cash, but also those investing cash in housing projects, but also what will become of this market when they no longer find this type of investment attractive.

IS THERE A REAL ESTATE MARKET “BUBBLE”?

One of the indicators that’s utilised when checking for the presence of “inflated” real estate market prices (for apartments) is the ratio between the average price of a 60m2 apartment and average annual net earnings (price-to-income ratio). This index actually shows how many years the average resident of a country or city needs to work to be able to buy a new build residential unit with an average surface area (60m2). The higher this indicator, the more “inflated” prices are, and, conversely, the lower it is, the easier it is for citizens to become homeowners.

The standard international threshold for this indicator stands at a value of between four and six, so situations in which it exceeds six indicate the existence of a housing market price “bubble”. This general criterion should nevertheless be observed with certain reservations. It is more important to compare the index’s current value with the multiyear average (representing a sort of standard) for the same country or city. If it is currently below the multiyear average, we can expect a further rise in housing prices. In contrast, a decrease in housing prices is likely in cases in which the current value of this indicator is above the multiyear average.

According to official data on the price per square metre for new build residential properties and average income in Serbia, that index stood at 14 in 2022. Its average value during the 2013-2019 period was 15.7. It thus follows that, despite the already extremely high prices of new build apartments, room exists for them to increase further. Results by city are also interesting – for instance, the index for the city of Zrenjanin shows that there is room for prices to increase by an additional 10 per cent, taking into consideration the enduring trend of the ratio between average income and price per square metre.

ARE PRICES FALLING?

The volume of the real estate market, i.e., the total number of completed sale-purchase deals (transactions), is one of the basic indicators of the state of this market. When any changes occur, the real estate market reacts first through increases or decreases in the number of transactions, while prices change slightly and slowly.

That was also the case following the global financial crisis of 2008. Also testifying to this is the data of the National Corporation for Housing Loan Insurance (NKOSK) on the number of sale-purchase transactions realised via bank loans. Prior to the outbreak of the global financial crisis, our country’s real estate market had experienced strong expansion (2005-2008 period). Inflows of funds from privatisations, FDI growth, the hiring of new workers and very dynamic crediting activity in the area of long-term housing loans (mortgages) among banks under foreign ownership all played their part. However, everything ground to a halt once the negative impact of the crisis had been felt in our country (autumn 2008). Many people lost their jobs and monthly earnings and were thus unable to regularly service their obligations to banks, the share of non-performing loans in bank portfolios “exploded” and banks became much more cautious and rigorous when approving new loans. The result was a drastic drop (of as much as 58%) in the number of sale-purchase transactions conducted with the help of bank loans. However, prices didn’t fall significantly, because – obviously – the fall in demand was accompanied by a fall in the supply of residential buildings.

When prices are expected to fall, those who have money/cash will wait to buy, while sellers who can afford it won’t rush to sell and thus reduce the price. It is possible for there to be a repeat of the scenario from 2009 – with a strong drop in the number of transactions, accompanied by a smaller drop in prices.

AND WHAT ABOUT HOUSING LOANS?

When we analyse real estate market developments, we must take the latest circumstances into account, i.e., the restrictive monetary policy (raising of interest rates) that is deployed with the aim of curbing inflation.

Borrowing conditions for Serbian citizens have become drastically worse over the previous year. The average interest rate on dinar cash loans rose from 8.64% in February 2022 to a whopping 14.29% in February this year. There has also been a significant rise in prices of housing loans (indexed in euros), which occupy an important place in the structure of total bank placements in the retail sector.

When it comes to indexed loans, as much as 85% of placed funds (approx. €5 billion) relate to housing loans, which are naturally long-term loans.

Although it is a thankless task to forecast what will happen with this market in 2023, construction plans evidently exist. With an increased supply and a slightly lower level of demand, there is perhaps reason to assume that we could see the emergence of a “cooldown”

Over 150,000 households are repaying a loan for a residential flat/house. The average interest rate for this type of loan has more than doubled over the course of the last year – from 2.61% to 5.8%. This is the highest interest rate for housing loans since September 2011, when it reached a level of 5.96%.

If we take the example of a family that started repaying a 60,000-euro housing loan with a 20-year repayment period in February of last year, the monthly instalment (annuity) stood at 320 euros at the start of the repayment period, while today it has risen to the amount of 405 euros, which is a hike of 85 euros (10,000 dinars).

As such, a significant number of potential homebuyers remain “out of the game” – as it isn’t so easy to take out a loan. Banks are now more rigorous when approving loans, borrowing conditions are worse and place a far higher burden on monthly incomes, and this is slowly leading to the waning of demand for apartments in this segment.

OFFER OF RESIDENTIAL UNITS

However, regardless of the slowdown in the dynamics of realised sale-purchase deals, for now investors aren’t reducing their activities, or at least have no plans to do so, judging by RZS data on the number of building permits issued and apartment constructions completed.

The number of apartments completed in 2021 was up 14 per cent on 2020, while the number of building permits issued in 2022 was up by 14 per cent compared to 2021. The number of new apartments can therefore be expected to increase under similar dynamics in the coming period. Although it is a thankless task to forecast what will happen with this market in 2023, construction plans evidently exist. With an increased supply and a slightly lower level of demand, there is perhaps reason to assume that we could see the emergence of a “cooldown”.

At the same time, it is possible for geopolitical circumstances and rising interest rates, which generally impact negatively on investors, to cause a freeze in construction at a certain juncture.

The growth of prices is gradually starting to slow in the U.S. and EU. That differs by member state in the European Union, but it is noticeable that growth in the prices of apartments and houses was “weaker” at the level of the EU as a whole in 2022. Compared to the same period of 2021, prices were up 3.6% in Q4 2022, which is lower than in the first (10.4%), second (9.8%) and third quarters (7.3%).

The post Real Estate Prices Have Yet To Peak appeared first on CorD Magazine.

When it comes to the EU market, ESG principles will soon be essential for everyone from Serbia wanting to do business with other companies, but Serbia has yet to adopt a specific law that addresses these issues – explains Novaston CEO Mia Zečević, before revealing why this is among the most important topics for all investors.

Given that you’re entering the second decade of your operations, has the time come to expand your portfolio or conquer new markets?

We’ve grown from seven employees to become a unique platform with more than 40 strategic projects and 500,000m2 of real estate surface area that we manage for more than 15 clients, among which are the likes of Schneider Electric, Ikea Serbia, NEPI Rockcastle, CPI Property Group et al.

We have built a position in the retail, business and logistics sectors, and we are continuing to apply trends in the management of aparthotels in our country and around the region. Alongside property management, our platform also offers owners a return on their investment through the rental of apartments, considering the tourist potential and project concept. We are working on several other similar projects, with the goal of providing a long-term investment product for all stakeholders in the project development process.

It used to be location that had a crucial influence on the value of real estate, while the standout factors today are ESG standards and energy sustainability. Are these new standards also flourishing in our country?

ESG principles are no longer a trend and choice issue, but rather implementing them in all areas of business is a key factor that’s almost an essential requirement for all companies. They will soon be a necessity for all those from Serbia wanting to do business with other companies when it comes to the EU market. We still lack a specific law that deals with ESG issues, apart from traditional regulations in the domain of environmental, labour and criminal law, which isn’t sufficient because ESG implies a much broader story. The will also exists to regulate this area, so we will see what kind of incentives there will be for companies that implement ESG principles in their business strategies.

Our goal is to provide all stakeholders in the project development process with a long-term investment product

The problem is that, for local investors, the most important factor is the costs that they have, so they only observe the extent to which a project pays off through the short and medium term. Their greatest interest is in how they can extract greater profit as soon as possible, often overlooking the fact that they would be more profitable over the long run. Foreign companies think differently. As an example, I can note that we worked on a project to reconstruct a business property in Novi Sad, where the investor is local and the building is being entered by one of the world’s largest companies – Schneider Electric – that knows what it wants.

You worked in cooperation with law firm Gecić Law to release a guide for real estate investments in Serbia? How did that come about?

The ‘Guide to real estate development – Office Space Case study’ shows, in an understandable and transparent way, the process of investing in the development of a project to construct business premises. Our goal was to create something concise, in one place, for those wanting to invest; to demystify every stage of that challenging process: from making the decision to invest, via construction and opening, to the moment when the building comes to life. Its creation included the participation of the Novaston team, which is characterised by its specific expertise, familiarity with the real estate market in Serbia and the region, more than 15 years of experience in the creation and management of hundreds of thousands of square metres of real estate, together with the team of law firm Gecić Law, which took care of the legal aspect.

The post ESG Principles For Permanent Savings appeared first on CorD Magazine.

When one works with the desire for employees to be happy to be part of the WMD team, and for satisfied customers to recommend us to others and return to us, then success cannot be lacking – says Wood Mood Design (WMD) owner Milica Marić, before revealing why it is important for customers to share the values championed by the brand.

Despite you hailing from a family that has a long tradition of processing and working with wood, the Wood Mood Design brand didn’t emerge overnight. How would you describe the journey from your first pieces of furniture to this unique sales salon?

Even as a child, I found it more interesting to play with little pieces of wood. My parents deal with the production of fine art equipment and accessories, while it was my grandfather who was the traditional old carpenter…

I also quickly developed an interest in technical drawing. I saw that somewhere, probably from my father, who’s a mechanical engineer. I was somehow constantly imbued with the artistic and technical aspects, so – despite having completed my schooling in the natural sciences and mathematics department at high school – I opted to enrole in the Faculty of Applied Arts in Belgrade to study interior architecture.

I came up with my first pieces, a WM club table, while in my second year of college. That wasn’t a study course assignment, but rather my resolve to design and create an attractive and appealing table, lightweight, on wheels, which would replace the heavy wooden desk in my room that I had to move every night and which caused me a lot of back pain. The idea emerged when I was sketching symbols while chatting with a friend on the phone. Inspiration can strike in different places and at different moments.

When I completed my studies, I submitted my works in contests, in a desire to discover whether anyone liked what I was doing. I won several international design awards in Italy, Brussels, L.A., Slovenia and the most important one – the Golden Muse Design Award – in NYC, for my design of the Long Socks desk. That is valued and recognised among customers.

Theory is certainly important as a foundation, but people who launch any business should recognise the importance of practice and dedication, and money will come

I also participated in a contest that was held under the patronage of the Government of the Republic of Serbia. We made the works at company Simpo and then prepared the exhibition. The fact that, after graduating from college, I learnt at such a large and organised manufacturer is of immeasurable importance. Practical experience is essential after graduating from college, while theory is certainly important as a foundation. People who launch any business should recognise the importance of practice and dedication, and money will come.

I remember how I started… I did most things as a service for other manufacturers, and then a car accident that happened when I was overcome by exhaustion changed the course of WOOD MOOD. It was then that we decided to buy a CNC machine and some simpler machines, as WMD had already started developing after the first furniture fair and the award for exceptional aesthetic design solution. Awards have continued to come ever since, while sales have grown…

The first WOOD MOOD piece was sold in 2010. From then until today, and the range of products has changed significantly since then. I set out ambitiously, making large accent pieces that beautify and ennoble a space. Twelve years passed before the opening of the sales salon in Belgrade. When I was ready to accept the risk, an unusual space emerged, filled with warmth and originality, as customers usually comment.

You participate in almost every segment of production – from initial idea, technical development and CNC machine programming, all the way to presentation and sales. Is it fair to say that this isn’t really a regular approach to doing business?

I am the owner, but primarily also the designer. And that need I have to create has already produced the recognisable brand that is WOOD MOOD DESIGN. That comes with responsibility, both towards the people with whom I work and towards the customers. I want the people I work with to be happy and satisfied to be working at WMD and for our satisfied customers to recommend us to others and return themselves. I learned to programme and work on the CNC machine, which also means a lot to me when it comes to the development of new products, but I also plan to involve others in that.

The post Furniture Harmonised With Nature appeared first on CorD Magazine.

Ms. Yalçınkaya brings over 20 years of real estate business experience with extensive know-how in acquisition, disposal, (re)development, leasing, asset, and property management. During her career in multinational companies, she was responsible for numerous investment projects and operations of real estate assets.

Prior to joining MPC, she served as the CEO and Board Member for both the Multi Corporation and ECE Group’s subsidiaries in Türkiye and provided oversight and guidance to the largest retail real estate platforms in the country.

“I am excited to join MPC Properties and uphold the company’s vision to build communities and enable prosperity for all, in addition to MPC’s commitment to bring the best innovative real estate project solutions on the market “, said Yalçınkaya.

The post MPC Properties Appoints Pınar Yalçınkaya As The New CEO appeared first on CorD Magazine.

According to their data, buyers of a new apartment in Munich pay an average of 10,500 euros per square meter, and in Paris an average price is 13,462 euros, while prices in London, Oslo and Frankfurt are around 8,400 euros.

On the other hand, in the Bulgarian cities of Varna and Burgas on the Black Sea, which were also included in the analysis of real estate prices in 68 large cities from 23 European countries, new apartments can be found for an average of around 900 euros per square meter.

The analysis also shows that prices of construction have increased throughout Europe, and interrupted supply chains and shortages of construction materials have increased the risk in planning and executing construction projects.

An additional problem is inflation and a lack of workers, which further raises prices, but as the report concludes, rising interest rates could slow down demand and price growth.

The post Paris And Munich Ranked Most Expensive EU Cities To Buy Property appeared first on CorD Magazine.

In an interview with Tanjug, Strbac mentioned that the purchase of real estate from loans has decreased, so that 88 percent of turnover is paid in cash and that buyers are more cautious when taking out housing loans, due to the increase in interest rates.

“It is interesting that, compared to last year, there was a slight decrease in the purchase of apartments on credit, because in previous years about 30 percent were paid from loans, and this year 27 percent of apartments were purchased on credit,” Štrbac said.

She added that real estate is getting more expensive, but despite that, the amount of money in real estate transactions has increased as well as increased demand for real estate in Serbia.

“The European Committee for the Assessment of Systematic Risk stated in its report as an explanation for the constant demand for real estate and the rise in its prices that people are afraid of inflation and think that their money will be safer if they buy some real estate, so a drastic drop in demand for real estate is not expected”, stated Strbac.

According to RGZ data, compared to last year, real estate turnover increased the most in Kragujevac by 7.5 percent, then in Belgrade by 4.5 percent and in Novi Sad by three percent.

Štrbac stated that the most purchased are apartments, construction land, houses, agricultural land, and garage and office space. She also stated that the most expensive square meter of living space was paid for an apartment of 97 square meters in a tower in Belgrade on the water, and it cost 9,545 euros, and the most expensive apartment sold in the same neighborhood with an area of ​​163 square meters was paid close to 1.4 million euros.

The most expensive house, worth 2.9 million euros, was sold in the Belgrade municipality of Stari grad, a business area of ​​3,183 square meters was paid for 10.2 million euros, and the most expensive garage was sold in Kopaonik for 42,000 euros.

The post Real Estate Market In Serbia Worth Two Billion Euros appeared first on CorD Magazine.

The top buyers were from India, followed by the United Kingdom, Italy, Russia, France, Canada, Pakistan, Egypt, Lebanon and China.

Due to the high demand, the value of the property in Dubai surged by 85%.

The post Dubai Property Sales Surge 60%  appeared first on CorD Magazine.

Inflation, the possibility that banks will raise the price of mortgages, the future dinar-euro ratio, people’s purchasing power and the conflict in Ukraine bringing new residents to Serbia are just some of the many elements shaping prices in the country’s property market at the moment. Will the growth of property prices that we have been seeing since 2013 and the growth in the value of approved housing loans continue, or are we facing the bursting of a ‘real estate bubble’? Professor Dejan Molnar of the Belgrade Faculty of Economics analyses these trends and possible scenarios.

In Serbia, we can remember not so long ago when the demand for apartments was so low that owners were happy to find tenants at all, and that now with the story of the arrival of Russians and Ukrainians, apartment rents are said to be growing. In your opinion, what awaits current and future apartment owners and those who rent them in the next year or two?

In our country, when people earn more (or feel they do), they usually decide to buy property. It is also important that rents have grown in recent years, so in conditions of low interest rates, a monthly mortgage instalment is lower than rent, which leads many to decide to take out a mortgage and start repaying their own square metres instead of renting them. Trends in the apartment rental market will above all be determined by the level of people’s living standards and their loan conditions. Expressed in euros, the average salary was about 50% higher in 2021 (553 euros) than in 2014 (368 euros). At the same time, banks’ average interest rate on newly approved mortgages in January 2022 had almost halved (2.56%) compared to the same month in 2014 (4.87%).

This means that for a 20-year mortgage of 50,000 euros, the monthly annuity in 2014 was around 323 euros, up to 88% of the average salary, while today the instalment for such a loan is around 265 euros or just 48% of the average salary. At the same time, the basic macroeconomic variable that ‘holds water’ here is the exchange rate, the value of the euro in relation to the dinar. The fact that we have had no major exchange rate fluctuations during the entire period actually makes people feel that their standard of living is growing. This is how banks treat it, so their mortgage portfolios expand. The value of private mortgages increased by over 73% in the period 2014-2021 – from 2.67 to 4.56 billion euros.

Economists believe that the real estate market has long been overvalued and will sooner or later fall. Does our market follow what is happening on the ‘big markets’ of the USA and the EU, or does it have its own laws governing prices?

House and apartment prices in the EU had increased by an average of 9.2% in the third quarter of 2021 compared to the same period in 2020. This growth varied over member states: in the Czech Republic it was as much as 22%, in Estonia 17.3%, in the Netherlands 16.8%, in Austria and Slovenia 12.9%, in Hungary 12.6%, in Germany 12%, in Croatia 9%, in Slovakia 8%, in France 7.1%, in Romania 5.9%, and in Italy and Spain 4.2%. Apartment prices in Serbia have been growing steadily since 2013. The average price of a square metre in a new building was over 32% higher in 2021 (1,510 euros) than in 2014 (1,140 euros).

Although the price of a square metre of apartment increased by one third from 2014 to 2021, the amount of housing loans sold to individuals also increased. This is primarily due to the growth of average salaries in euros, falling interest rates and a stable dinar exchange rate against the euro

Any increase in mortgage interest rates would reduce the circle of those who can take bank loans to buy a home. Each additional percentage point in the interest rate leaves one group of potential buyers ‘out of play’. This could lead to lower demand and falling prices. New waves of corona virus pandemic would probably cause new interruptions in production and a recession, leading to reduced demand for property. This will affect so-called self-stimulating mechanisms that result from people’s expectations. Today, when prices are rising, buyers hurry to buy property today to avoid paying more tomorrow. Expectation that prices will be even higher creates additional demand that pushes prices upwards. When prices stop rising and start falling, buyers will refrain from buying because they expect prices to fall further, which will reduce demand. At the same time and for the same reasons, sellers will want to sell property as soon as possible and ‘catch the last train’ with high prices.

As we are a nation that is aging and emigrating en masse, a non-expert asks who will live in these apartments? Is our relatively stable housing stock being redistributed between smaller places and towns that people are leaving towards Belgrade and Novi Sad, or are apartments being built with the idea that Serbia will also have an influx of people from other countries who for various reasons want to own property in Serbia?

Uncertainty and expectations of inflation make people with money invest everything they have in real estate. On the other hand, there is a continuous decline in the country’s population. Negative natural increase (more deaths than births) and physical outflow of the population (migration) make a synchronized contribution to this. In addition, we live in a country where children become independent and leave their parents’ homes relatively late. The concurrence of these two trends (continuous decline in population and growth in the number of newly built apartments) raises certain questions.

In 2020, in as many as 19 out of a total of 25 administrative areas (districts), a higher number of emigrants than immigrants was recorded in Serbia. Apart from Belgrade (+4,866 inhabitants), a positive balance of migratory movements in 2020 was also achieved in Novi Sad (+1,572), Pančevo (+179), Subotica (+143) and Niš (+255). The towns from which people emigrated more than immigrated are more numerous: Sombor (-115), Vršac (-57), Kikinda (-159), Sremska Mitrovica (-13), Užice (-308), Valjevo (-112) , Sabac (-35), Cacak (-17), Krusevac (-141), Kraljevo (-227), Kragujevac (-42), Leskovac (-287), Vranje (-263), Smederevo (-330), Zajecar (-87), Pirot (-93), etc.

Just as rural areas and other towns in the country (except Belgrade and Novi Sad) are ‘empty’, so there is a kind of division within urban areas – young people move to new apartments and parts of the city where housing is ‘flourishing’, while other parts of these cities remain abandoned and slowly die out.

On the one hand, primarily in Belgrade and now in various parts of Serbia with well-preserved nature, we see a wave of construction of luxury buildings, large surfaces with fenced green areas and common facilities exclusively intended only for residents, or weekend resorts. Is this a marginal phenomenon or does the structure of new residential buildings tell of some new trends in our market?

I think that this segment of the property market is intended for a narrow circle of more solvent buyers or users of these, for our conditions exclusive, housing estates. Climatologists, urban planners, architects, ecologists say that many cities have long since switched to combining blue and green structures that should enable cities to more easily resist pollution and rising temperatures. In contrast, in Belgrade and larger cities in Serbia, we see the pouring of concrete on all surfaces that can be used for construction. What needs to happen on the domestic real estate market to see smart cities in Serbia?

Just as rural areas and other towns in the country (except Belgrade and Novi Sad) are ‘empty’, so there is a kind of division within urban areas – young people move to new apartments and parts of the city where housing is ‘flourishing’, while other parts of these cities remain abandoned and slowly die out

This issue is related to both supply and demand. When it comes to supply, this is first of all about urban planning and appropriate regulations and standards. Secondly, it is a question of return on investment – high quality modern installations are more expensive to build. Finally, there is the ability to pay (the living standards) of buyers and their willingness to set aside money for such housing. There are smart buildings on the market, but the number of those who can afford such an environment is limited.

Along with new apartments, facilities are being built that make an area comfortable to live in, from supermarkets to shopping malls. What is happening in this market? Is it saturated?

New settlements and the people who live in them also require appropriate content (especially if it is a younger population, families with small children, etc.). The modern way of life ‘dictates’ appropriate models for spending money and free time. We see that shopping malls are quite well visited in larger cities. Just when I think that this market is oversaturated and that there are too many shopping centres, I am contradicted (even surprised) by the fact that shopping centres in Belgrade and Novi Sad are almost always full.

The post Exchange Rate Maintains Stability In Property Market appeared first on CorD Magazine.

An attractive location with unique views and the highest quality construction, but also excellent connectivity to other parts of the city, represent just some of the elements that distinguish Belgrade Waterfront on the real estate market, positioning it as the most desirable residential destination.

According to data from the real estate cadastre, more than half of all buyers of new builds in Belgrade have opted for an apartment within the scope of this project. Moreover, according to the claims of real estate agents, Belgrade Waterfront’s apartments are the quickest to receive rental tenants. Investing in an apartment in this most modern quarter of the capital, located on the bank of the Sava, represent a secure long-term investment, regardless of whether you buy it for your own housing or to rent. Thanks to housing loans created specifically for Belgrade Waterfront, potential residents also have the opportunity to apply for a bank loan at an early stage of construction, with monthly payment rates of as little as 499 euros. Another option is an interest-free loan in seven instalments pegged to the project’s construction phases.

Apart from top-quality construction in all phases and the use of the latest materials, apartments are characterised by their outstanding functionality and comfort, ample natural light, impressive views, spaciousness, elegant lobbies with a reception area and security on the ground floor of each building, underground parking and landscaped inner courtyards for residents

Seven buildings with a total of 1,500 apartments have so far been completed in the Belgrade Waterfront, while the sale of the jubilee 4,000th apartment was celebrated during spring. And what awaits residents of this all-encompassing neighbourhood? Apart from top-quality construction in all phases and the use of the latest materials, apartments are characterised by their outstanding functionality and comfort, ample natural light, impressive views, spaciousness, elegant lobbies with a reception area and security on the ground floor of each building, underground parking and landscaped inner courtyards for residents. But that’s just the start of the benefits of living in Belgrade Waterfront. Whichever building you choose, you will find shops, cafes and restaurants in the building itself, while kindergartens, schools, the spacious Sava Park with its numerous possibilities for recreation and relaxation, as well as the attractive Sava Promenada, are all never more than a few minutes’ walk from your doorstep.

Shopping at more than 200 stores of renowned international and domestic brands, lunch or dinner at restaurants overlooking the river, the latest blockbusters with IMAX technology, and endless fun at the country’s largest trampoline, all await you at the Galerija.

Works are being finalised on the façade of Kula Belgrade, representing the crowning glory of this entire project and a new symbol of the Serbian capital. This 168-metre-tall masterpiece of architecture will house a St. Regis hotel and The Residences at The St. Regis Belgrade. The arrival of this prestigious brand, which forms part of the portfolio of the famous Marriott International hotel and residential chain, places Belgrade on the map of the very carefully selected destinations in which St. Regis operates. At the same time, the opening of The Residences at St. Regis Belgrade will raise housing standards to a level not previously reached – not only in Serbia, but across this part of Europe.

The post A Belgrade Waterfront Apartment = A Secure Investment In The Future appeared first on CorD Magazine.

We have correctly and at the right time dimensioned and structured a company that can respond to such challenging and complex project demands. There are above all large complexes in Kragujevac for clients like Tesla Palace, Euro Motus Real Estate, Delta Real Estate, JDM Real Estate – says the Simović tandem.

How did you profile yourself in the industry and how did the development of your design office go?

Petar: The idea of ARIS from the start was to position it as a reliable partner for design and all the other activities in design and engineering in Kragujevac and beyond. We recognised a lack of local quality service, while Kragujevac has experienced a kind of expansion and development in the last ten years, so it was logical to focus on narrow specialisation.

You have a brilliant team of experienced professionals that you have been working with for years? Without their expertise, understanding and complementarity, you wouldn’t be so successful?

Marija: That’s true and we saw the first five years of the company’s development as a period to profile our services, so we specialised ARIS as a bureau that provides quality service in architectural and construction design, with permanent, high quality external associates necessary to complete the documentation so we can provide a complete service.

It is important to understand all the specifics of the different phases of a project so that the final product is satisfying to both clients and ourselves as designers

We have invested a lot of time and effort in mastering and forming knowhow, especially for coordinating projects on a small scale through large and varied typologies. So it is very important to understand all the specifics of the different phases of a project so that the final product is satisfying to both the client and ourselves as designers.

Serbia is seeing building more than ever before, which has its downsides – the chaos of lay and ad hoc architecture. Can this be stopped?

Marija: We think that the regulations that are on their way to be integrated with the EU’s have almost stopped lay architecture. People became aware that permission was needed to build something, so a culture of hiring an architect was established so that at least the bureaucratic part would be respected. In that sense, it has already been taken care of to some extent, but that is the only thing that is right.

And ad hoc architecture, if we define it as something that is designed quickly and without too much attention to the importance that architecture can have for users and the immediate and wider environment, it is present and is initiated by the speed required to spend certain funds or carry out intentions. The only way to stop this is through education, not only education in terms of knowing the importance that architecture can have in everyday life, but also in economic, environmental and social terms, in order to see the benefits of careful planning.

Has the fact that investors have been asking and deciding about everything for the last 20 years done enormous damage? Is Kragujevac one of those cities?

Petar: Stigmatisation of investors through the term investor architecture is a very simple approach to a complex phenomenon. It is quite clear that investors are building for the market, and the market is made up of people, and human expectations from functionality to the aesthetics of space are conditioned by personal and group culture. And changing culture is a slow process that eludes perception.

Investors build for the market, the market is made of people, and human expectations from functionality to the aesthetics of space are conditioned by personal and group culture

We have some good experience with investors, because we cooperate with them, we try to understand them and slightly change their perception and attitude towards space. However, if we analyse the current situation in Kragujevac and Belgrade in more detail, as far as our experience goes, the situation is not so bad at all and has a positive trend. Of course, ‘Parisians’ are still sprouting here and there, but it is impossible and unhealthy to regulate public aesthetics. It must be a matter of evolution. In the end, a more detailed analysis of the time before investor urbanism shows it was also full of omissions and mediocre design and urban solutions, but the past always looks much better than the present.

Do you think that it would be better for the development of the city if there were serious public architectural and urban competitions with the best solutions chosen?

Marija: We are absolutely in favour of a the institution of competition. A choice is good, which is also shown by the fact that private investors sometimes decide to organise internal competitions to be sure they choose the best option for themselves. Public competitions are mostly absent due to the slowness of the whole process and impatience for spending funds. If things were viewed in the long run, there would probably be more interest in organising them.

However, we must note that in the last two years, several interesting competitions have been organised in Serbia and that quality solutions have been chosen. We hope that they will be realised, because that would completely confirm the institution of the competition and lead to greater interest in society.

Although you have completed many buildings, large in size and budget, are there some that stand out, some that you are especially proud of?

Marija: As architects, we started working together on small scale projects of different typologies, from housing to business in a small studio (Studio Simović) that has grown into ARIS. In that period of transition from independent work to a partnership company, we made several interesting miniature residential buildings for which we won prizes and were nominated for prestigious European awards (N1 Housing, N8 Housing), with which we actually presented our architectural vision of transforming the urban environment in Kragujevac.

What are you currently engaged in? Do you have any major projects planned for the next period?

Petar: Right now we are in the big scale phase, mostly residential and business complexes, which is very challenging and implies a completely different logic and design approach. We have correctly and at the right time dimensioned and structured a company that can respond to such challenging and complex project demands. There are primarily large complexes in Kragujevac for clients such as Tesla Palace, Euro Motus Real Estate, Delta Real Estate, JDM Real Estate. Kragujevac is experiencing a serious expansion and as native citizens of Kragujevac we are very happy to have the opportunity to participate in defining new parts of the city. And we hope that we will be able to expand the experience we will gain into the whole region, which is our long-term goal.

The post Ready For The Most Complex Projects appeared first on CorD Magazine.

Belgrade, along with Serbia as a whole, is becoming an increasingly serious destination for investments in various types of real estate, while the actual market is slowly profiling itself. MPC Properties’ strategy, according to the company itself, has complete clarity.

Judging by your portfolio, we can conclude that MPC Properties will be a key player when it comes to investment and development for a long time to come. What will your next investment be?

Our portfolio gives us strength and strategic positioning in the market, but above all, our expertise and know-how, makes difference. We know why we are investing.

We make long-term projections and invest more in fields of sustainable construction of our assets than the competition, our assets have the highest LEED and BREAM certificates. We also have strategic partnerships with all global brands, but above all we are very well experienced with the dynamics of this market. This fact is also confirmed by the full leasing of the business buildings UŠĆE Tower Two and Navigator Business Centre 2, as well as the BEO shopping centre, which opened in 2020, at the time of the pandemic. We’ve strengthened our portfolio with the purchase of Delta City, and in the coming period we’ll focus on additionally strengthening our office portfolio in the segment of A Class buildings in prime Belgrade locations.

There has always been a real estate industry rule that these are the only secure investments? Is that still the case?

When it comes to real estate industry, investing in residential is the first association for secure investment. These are relatively stable investments that are exposed to less risk, but also lower returns. However, every investment implies a certain risk.

Our portfolio thus gives us strength and stability, while our knowhow and expertise confirm that we know how to choose the right project, as we know when and why we invest

More complex investments, such as retail centres and office buildings, are properties that do imply a higher risk, but for return bring significantly higher returns. The crucial factor of success, in this case, is industry knowhow, a network of partners and tenants, familiarity with financial trends and portfolio strength.

In your opinion, what would represent the best investment at the moment and has the growth of the online market influenced a different framework?

The pandemic was an ideal opportunity to demonstrate the strength of the online market, but the turnaround has not happened. We’ve just gained a more complex market, where the online domain is still in the consolidation phase, but the offline market remains a priority and continues to have great potential for further development. However, the offline market is also experiencing a transformation of its own, which is moving in the direction of creating more content-rich shopping destinations and improving the user experience. The consumer is today at the heart of every business more than ever before, and those who best respond to the new needs of consumers, are the ones that can expect to endure.

Does the local market have enough clients with the payment power to keep pace with the high leasing prices that seem to be set to continue rising?

MPC invests in high-quality office buildings, class A+, which address the needs of major international companies that think on long-term basis and can recognise the importance of higher initial investments and the advantages that brings to their employees and their actual business.

Given that we’re market pioneers in the retail segment, we select shopping destinations that are in the city’s busiest places and possess all the essential infrastructure for brand development. Such an approach has enabled us to gain the reputation we have today as the first choice on the market.

The post First Choice On The Market appeared first on CorD Magazine.

Dach year, the team of this respectable Belgrade architectural studio is expanding their portfolio and list of locations where they have been hired as designer, especially with their important participation in drafting the project documentation for the reconstruction and extension of the pearl of the Serbian architectural scene, the SANU Palace.

How tcan we establish a balance between a modern way of life in the city and the rich heritage without which Belgrade would not be Belgrade? Can history, tradition and the demands of modern man be successfully combined?

A.Š. During the planning elaboration of the defined scope, which consists of the city or certain parts of it, a studious analysis and confirmation of the existing cultural, historical and natural values is the initial procedure by which a sufficient perception and a detailed familiarity is formed in various aspects with the space that is the subject of the planning document.

As the city is a living organism that changes and develops every day, one should be very careful about the existing values, the potential values that cry out to be iluminated, and not by just any criteria, and the conditions and needs for development, so as to create a high quality planning solution as a basis for the area covered by the planning document to be developed in the coming years. Retaining valuable buildings and environments is very important, but it is also very important to respond to modern requirements for the development and improvement of the city from architectural and urbanistic viewpoints.

The integration of new, modern buildings with modern city areas with a rich heritage is both a challenge and a responsibility. In numerous examples in global metropolises, we notice that one of their qualities is the successful realisation of the intertwining of historical heritage and applied modern tendencies in architecture and urbanism.

Can the existing infrastructure withstand this pace of construction of new facilities and what does Belgrade need most at the moment?

A.Š. For the development of the city or some part of it, the condition is the preparation of a planning document which will, among other things, define other and public purposes, capacities and conditions for future construction, infrastructure capacities and conditions for improving and building infrastructure. For the unhindered functioning of the city, it is necessary to implement planning solutions, primarily in those areas related to the construction of roads, public utility infrastructure, edifices intended for education and facilities intended for social and health care. Most of the current problems in the functioning of the city are the result of unrealised planning solutions, illegal construction, unbuilt buildings or parts of buildings intended for stationary traffic.

The integration of new, modern buildings and modern areas of the city with a rich heritage is both a challenge and a responsibility

It is thought that in ten years, many parts of the capital, even New Belgrade, will be left without sites for new facilities. Where and how will the city expand then?

A. Š. The development of the city is a specific process that happens before us every day. In relation to the actual increase in demand for new sites and the present demographic expansion in the city of Belgrade, a more balanced development of the city is occurring with the activation of some, almost unjustly, neglected parts of Belgrade. In recent years, the expansion of the city has been noticeable in all directions. Locations that were completely unattractive ten years ago are crying out to become important points in the city. For an appropriate expansion of the city, the most important thing is to fulfill the basic condition, which is the preparation of planning documentation and the subsequent realisation of the planning solutions.

How much do new materials and the most modern technologies make it easier for you and your colleagues to realise all your visions, to give the project a unique, author’s stamp, to express all your creativity …?

N. D. Technological development accompanied by innovative processes has definitely contributed to a clearly visible transformation in the realisation of works of modern architecture, in such a way that the concept, which we primarily transfer to paper through sketches, later without major difficulties, precisely with these same or almost the same formal, functional and aesthetic characteristics, in each of the following phases may be examined in a focused manner, recognising the referential value and effectiveness of the final product. In consequence, we also often provide through the design process appropriate professional, technical and technological support to fellow engineers in various reference disciplines, all in order to become acquainted with new materials, their characteristics and ways in which they can be utilised.

In upgrading the knowledge that is primarily associated with the application of modern technological solutions, both in the field of architectural design and in the subsequent technological process of executing works, our team has, on almost every one of the many projects in which we are currently engaged, precisely an immediate opportunity, through its follow-up, to dedicate itself to it.

This applies to all phases of project implementation in which our team, following the architectural detail from its genesis to its implementation, is also dedicated to creating a realistic picture of the rational development of conceptual guidelines active in the emergence of new ideas, which are essentially a strong support for a legible and recognisable authorial approach, but also as such, critically exposed, both to the professional public and to the end users.

We solve challenging situations with an analytical approach, persistent elaboration and presentation of variant solutions in relation to the client’s requirements

All major cities in Serbia, not only Belgrade, have become huge building sites, which unfortunately in many cases has a negative impact on aesthetics, functionality, quality …? How do you fight that?

N. D. As the requirements of potential users, primarily in the field of residential construction, are now at the highest of levels, so the market itself requires diversity in selection, resulting in the participation of both consultants in sales procedures and of cost management consultants and experts in the field of marketing, at practically all stages of the design process. In connection with this, inconsistent attitudes of participants in the design process often manifest themselves, sometimes even in diametrical opposition to each other, and all in relation to views, interpretations and glorification of expectations.

At such times we solve circumstances and challenging situations with an analytical approach, persistent and almost constant elaboration and presentation of variant solutions in relation to the requirements emphasised by the clients. We do all this in order to be able to successfully incorporate common objectives in the most efficient way into an architectural solution that will not have shortcomings in terms of design, form, art, functional organisation and overall quality that a building must simply possess, at least in its outlines.

Among other things, your bureau is entrusted with drafting a project for the reconstruction and extension of the SANU Palace. How are preparations going for the works that are planned to be completed for the centenary of SANU 2024?

N. D. The reconstruction and extension of the SANU palace really is one of the most demanding and complex projects in which we are engaged, and where in addition to the process of reconstruction, adaptation and rehabilitation of the existing building, a very complex and authorially challenging intervention is designed in the atrium area of the palace, within which the future central motif of this representative building, embodied in a multifunctional concert hall, is functionally and formally incorporated. The investment-technical documentation intended for the entire intervention is in its final phase, which means that the conceptual design has been completed, that the conceptual project has been completed and confirmed by the revising committee of the competent ministry, that the construction permit project has been completed and that the construction permit for reconstruction and extension is imminently expected. This creates conditions for the preparation of the beginning of the execution of works, whose completion is planned in the year in which the centenary of the construction of the SANU palace is to be celebrated.

Does the fact that your architectural bureau, in addition to architects, is accompanied by experts in various professions and specialties, enable you to effectively manage projects, regardless of the scope and type of work?

S. K. Bureau Cube Partners primarily consists of a team of experts in the home discipline, architecture, including colleagues with enviable biographies, former professors, doctoral students and, I would say without false modesty, current and future important names in Serbian architecture with whom it is a great honour and pleasure to collaborate.

Expertise, working efficiency, a team and collegial relationship unequivocally enables project management in our office to be successful, regardless of the type and scope of work and the deadlines defined.

In addition to a high quality approach in solving architectural challenges, knowledge of local opportunities and processes and global trends has brought you a large number of clients. How did you keep them and motivate them to embark on new projects with you?

S. K. Our company is characterised by exceptional commitment, understanding of the market and the expressed needs of investors, and an understanding of the need to face and follow global architectural trends. I observe that the readiness for complex, often provocative, and at the same time challenging perceptions and the creation of new possibilities are almost always predetermined qualitative conditions that investors naturally expect from the architectural team that accompanies them, which in our case they probably recognise.

Expertise, efficiency, a team and collegial relationship enable project management in our office to be successful, regardless of the type and scope of work and the deadlines

In addition, I would like to emphasise the expertise and dedication of each individual in our team who is engaged in the design process, starting from understanding the idea, through recognising key points in the investment development cycle and synthesising elements that participate in creating a complete product, until its final realisation.

By participating in all phases of the project, your experts provide clients with additional security and guarantees that the work will be done flawlessly. Do you save them time?

S. K. Competence, rationality, creativity, sustainability, certainly synchronicity and cooperation in all disciplines, starting with architecture, are a prerequisite for design, and then all the following processes take place according to the given dynamics. But that is also equally a reason to consider all potential obstacles in the realisation in a timely manner, and to make savings in the estimated time of realisation of the entire cycle by timely resolution and prevent further extension of the planned deadlines.

The post No Limits For A Professional and Dedicated Team appeared first on CorD Magazine.

Personnel, both individual employees and teams, need to be flexible and oriented towards the task at hand, and not the place. This doesn’t mean that office space must be condensed, but rather that it should be modified to represent a company’s base.

Your company deals in the design of workspaces. What does that actually entail?

It entails dealing with the architecture of offices and workspaces, but actually through different disciplines – firstly analysis of companies’ organisation and work processes, analysis of the digitalisation of operations and the “measure” of virtual and physical works. But we primarily deal with the sociological and psychological needs of employees – by participating in the building of a pleasant and healthy atmosphere and corporate culture through spatial parameters. This is a team effort, and the architecture and interior of a workspace can use as a tools to realise those goals.

When you established Archinova five years ago, could you have imagined that things would change so quickly and that a pandemic would bring us new ways of doing business?

Changes to design methods of offices were obvious even before the pandemic, which only served to accelerate them. By orienting themselves towards the task at hand and the need to generate profit, as opposed to focusing on the place where they are based and work, many companies were able to digitalise and utilise virtual work platforms, and that technological wheel is spinning faster and won’t stop.

Flexibility, good design and collaboration through togetherness and the nurturing of corporate culture are our initial guidelines in workspace projects

In the process of designing and collaborating with an investor, we strive to strike a balance between physical workspace, virtual work and the building of a corporate culture and a sense of belonging.

Considering the new practise of working from home, do you think there’ll be a reduced need for traditional offices?

Hybrid work has created an opportunity for companies to engage the best experts anywhere in the world and to form multinational expertlevel teams that are flexible and task-oriented, rather than place-oriented.

This doesn’t mean that office space must be condensed, but rather that it should be modified from the traditional to a representation of a company’s base and a place where corporate values are initiated, as well as a place where employees are happy to come, meet and collaborate. Also, the greatest advantage of working from home is the travel time saved, but one of the new solutions could be the spatial diversification of workspaces.

What do you recommend when it comes to designing and developing new offices?

Developers and designers of new multi-tenant buildings can analyse new forms of organising office buildings, with the aim of optimising clients’ increased demand for flexibility (whether some spaces should be shared use; whether a need exists to develop new concepts like office hotel concepts, co-working concepts etc.), while the companies – led by their HR teams – analyse the optimal degree of hybrid work (in the office and from home) adapted to each area of activity independently. High-quality designers and architects, which Serbia has in abundance, are able to satisfy and exceed the highest standards and to design modern office space.

The post Reaching The Highest Standards Of Offices In Serbia appeared first on CorD Magazine.