Thursday, 30 August 2007

Property Market

Searching a house or an appartment in Serbia is not very easy. You would say buy an Oglasi and there are dozens of pages with thousands of offers for buying or renting some place. That's fully correct. 79 pages in Oglasi Krov Nekretnine. So, you would say that's great. A lot of choice, nicely put in order of 1.0 room up to 5, 6 or even more. But is this country not yet ready to make it more transparent? Because these 79 pages really don't say ANYTHING about the market. No information about price (about 25%), no information where it is besides the area such as Banjica, Zemun, Grad, etc. And above all no information about the house or appartment it self!
Just have a look how it is done in the rest of Europe and you'll agree with me that something is totally wrong in Serbia. This example (http://www.rightmove.co.uk/viewdetails-14387507.rsp?pa_n=1&tr_t=buy&from_showcase=true&pa_n=1) will show you some details!
First there is the real, full address, streetname, housenumber. Then there is a full description of the state of the house and what is in the surrounding like motorways, schools, shopping centres etc. Then of course you can have a first impression by watching the sometimes dozens of pictures and ask for a viewing with the broker and the owner of the house.
Why can this not be done in Serbia? Companies calling themselves Menadzer, Euro-House, Magnat, Gigant have pages full of property saying nothing more then "58+16+ter, Zemun Polje, 1, eg, 48.900". So what information you get from it? Do these companies have dozens of people working there only to answer questions from potential buyers wanting more info?
I called a view times and that even shows more that there is no real market, just a fake one. Most of the times the property is sold! (wow, yes, a day after it is published, very fast indeed!). Or they tell me to call back because there are some problems with the owner. I always wonder which owner will advertise if he/she does't want to sell? Worse is that when I ask the question where it is located exactly, they just don't want to answer. "Please sir make an appointment and we will bring you there" is the most common answer. Why is that? What is wrong with giving full information? Or is there something totally wrong with all the advertisements?
And then of course the prices. What are they based on? What market economy made the prices as they are at the moment? Nowadays "Menadzer" has a full page in the Oglasi telling what the market prices are in several parts in Belgrade. But again, based on what? An area as for instance Fontana-Merkator has prices in the range of 1000-1500 Euro per sq. meter. But that's a big area I can tell you. And what about the state of the property. Is it in perfect condition? Or does it have to be renovated? Is it near a school? Near a busstop? Near the Motorway? Is it on the topfloor or much lower? Is there an elevator? Many unanswered questions and therefore this market for property in Serbia is very, very fragile and to my opinion likely to collapse in a few years. The banks nowadays give people mortgages for up to 20 years or even longer. That would be perfect in a working economy with prices related to salary, GNP, etc. But here it is just based on what people pay/payed for it. The banks will be very happy with a collapse because they will be the big winners in the whole Serbian economy.
So, people who read this, ask the named companies here (or others you know) to make the whole system more transparent so that people will not be destroyed in 3 or 5 years as it is happening now in America!

1 comment:

MAIA said...

nice article, i'm a belgrade born Dubliner interested in the current economic state of Belgrade...
very nice observations, its nice to see people give a damn about whats going on in the property market.
the outlook could be good in this area if its approached by progressive thinkers and business people alike.
i have a bar/ restaurant in dublin with a similar positive vibe to you guys, i will be coming back to Belgrade for a family visit soon and look forward to coming in to your place.

regards
Sasha Evans
MAIA BAR AND RESTAURANT
47 Shelbourne Road
Dublin 4
www.maia.ie