Belgrade, the capital of Serbia (and previously the capital of former Yugoslavia) is a surprisingly prosperous place.
I don't know about you, but my impression of Serbia had been based on TV news images of war and stubborn looking nationalist who drove the wars and ethnic cleaning in the 90's.
But, Serbia appeared well healed and very middle class!
The number of smart sun glasses and coffee shops in the central (pedestrianised) districts of Belgrade far out numbered those of
Sofia (see my previous blog).
And, the coffee was cheap!
Even in the most expensive and exclusive Russian Tea Room (I think it was called the Tsar's Palace?) only cost 140 RSD - about 1.65 Euros.
Which means -
1). Belgrade is naturally a middle class place - with nice (can't yet call them smart) shopping districts, great architecture and a strong sense of a 'city centre'
2). Belgrade's residents like to consume
3). Coffee and cafe society is important and a key part of life in this city
4). Everything is still really cheap! (Okay, food and basic staples are cheap - electronics are not)
Which reminds me of something I was told in Sofia - in answer to 'what changed since Bulgaria joined the EU in Jan 07' I was told 'the cost of food has increased 50%'...
... which may explain why coffee is so cheap in Belgrade...
... which also explains why Belgrade and Serbia is drawing FDI (Foreign Direct Investment) - because wages are low and will be kept low due to high unemployment in many areas of the country (and perhaps this is an advantage) the labour force can't easily migrate to the EU!
I know these are slightly conflictory views - but then Belgrade and Serbia is a pretty contradictory place.
Or may be it just didn't conform to my prejudices...
I think this city is interesting for Property Investors - but the lack of a strong rental market would be a problem for Buy to Let investors in the short term.
Equally, whilst I was told it was possible to take money in and out of Serbia (ie no currency restrictions etc...) the border controls between Serbia and Bulgaria and Serbia and Croatia were a little slow and there was no obvious opportunity to convert my Serbian Dinars once I'd crossed the border?
I guess the answer is that Serbia and Belgrade have a history of prosperity and middle class values. It felt much more middle class and 'european' than Bulgaria, for instance. (By this I mean that people wore shorts and T shirts with comfort and ease in Belgrade - plus the designer sun-glasses, but this more 'liberal european' way of dress was still rare in
central Sofia)...
... and that after the hyper-inflation of the early 90's and the subsequent break up of Yugoslavia, Serbia and Belgrade are beginning to assert their economic credentials.
I didn't live through the 50s in Germany - the period of massive economic boom - but I wonder if Serbia isn't going to enjoy a similar boom?
Based on the level of A class office and 5 start hotel developments this would seem to be the view of the speculative investors?
Still, for individual property investors, Serbia is a tough place to invest.
But that doesn't mean it isn't worth the effort.
Cheers
Neil
PS. Next stop, Zagreb - the capital of Croatia (another former country to emerge from the former Yugoslavia)
PPS. Broad estimates of property prices in Belgrade are between 1,000 and 2,000 Euros per m2 - so this is not so cheap! (ie Sofia's prices for new build tend to start from 1,000 Euros per m2 - but Sofia is already in the EU)
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Neil Lewis, CEO and founder of Property Secrets, is an experienced property investor in his own right and author of two highly successful property investment books, 
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