Office Space, Belgrade
Strong development activity continued in Q4 2020, when four office buildings were completed, i.e. MPC’s Navigator 2, Shandong Plaza, Immorent’s Sirius B and office building in Block 32, bringing the completions to the level of 47,700 sq m. Summarizing the entire 2020, development completions amounted to nearly 100,000 sq m, which makes the year 2020 the most active in the previous 10-year period.
For the first time, Belgrade modern office stock has exceeded one million square meters of GLA, to be precise app. 766,000 sq m of GLA are speculative/leasable office stock, while app. 251,000 sq m are built for owner-occupation purposes.
Despite the current situation caused by coronavirus, the leasing activity slowed down in the first months of 2020 only. Q4 2020 marked the stable total take up of 23,500 sq m, which brings the annual demand to the level of 88,000 sq m, or 12% lower as compared to 2019-results.
New supply in the downtown as well as refurbishment of older projects caused the increase in demand in the city center, totaling 30% in 2020. During the last months of 2020, new projects were also initiated, the largest one is AFI Tower, 132-metre high office tower with 31 floors within Skyline Belgrade complex.
Industrial Property, Belgrade
Despite the current circumstances, Serbia and Belgrade witnessed strong activity in H2 2020, when the large portion of projects initiated in the previous period were completed in the second part of the year. When it comes to Belgrade and industrial zones in its close proximity (Pecinci and Stara Pazova), the overall annual deliveries exceed 140,000 sq m, while additionally, a certain number of old schemes has been acquired and refurbished into modern industrial facilities. Therefore, the total supply of modern industrial space in Belgrade and its vicinity exceeds 2 million sq m at the end of 2020.
When it comes to the demand for industrial space in H2 2020, it was mostly driven by the wholesale, logistics and distribution centers’ tenants, which is in accordance with the rise of e-commerce and retail online sales. Total leasing activity in Belgrade (incl. Pecinci and Stara Pazova) in H2 2020 stands at the similar level as in the first six months of the year, i.e., 50,000 sq m.
A significant interest in the industrial and logistics complexes continued in H2 2020, when Czech developer CTP enlarged its Serbian portfolio by acquisition of 30,000 sq m large warehouse facility LogMaxx Beta from Austrian-based real estate developer Eyemaxx, which makes the industrial market one of the fastest-growing real estate market segments in Serbia.