Most of the new projects are located in New Belgrade
The first half of 2017 saw expansion of the Belgrade office stock with the delivery of two modern office projects in New Belgrade CBD zone, totalling nearly 24,500 m². The 3rd phase of the office project GTC 41 was completed representing approximately 10,000 m², as well as the 1st phase of the Sirius project at over 14,500 m². Total modern office stock including Grade A and B at the end of H1 2017 amounted to 689,500 m² marking a 4% annual increase. The new office projects meant that construction activity remained strong during H2 2017 and will roll forward into 2018.
Further developments are underway, predominantly in New Belgrade. Thanks to the completion of several office projects in 2017 for nearly 30,000 m², the total modern office stock of Grade A and B offices grew above 700,000 m². New occupation and relocations were the main drivers of market activity during 2017. The IT sector remained most active business sector for office demand followed by call centres.
In 2017, the vacancy rate for office space Grade A and B declined to 7%. Although developments are coming to market, there is the possibility of additional reduction due to high demand. Rental levels remained stable compared to the second half of 2016. Prime asking rents for Grade A office buildings in CBD zone vary from €15 to €17/m²/month, while Grade B rental levels are ranging between €9 and €12/m²/month. The investment market remains healthy with the major purchase coming from GTC who acquired the office building BBC (17,900 m²) in New Belgrade.