Rents are skyrocketing in Serbia due to wealthy Russians

Rental prices are skyrocketing in Serbia. In the capital Belgrade, they have almost doubled in the past year. The increase is partly due to inflation, but there is another important cause: the wealthy Russian exiles. Since Serbia has not imposed sanctions on Russia, Russians are free to enter – and settle.

When you walk through the streets of Belgrade, you often hear Russian in addition to the national language. More than 100,000 Russians have settled in Serbia since the start of the war.

«Our new rent is one and a half times as high as before»

Djordje Majstorovic lives in Novi Sad, a city about 90 kilometers north of Belgrade. He had to experience the consequences of rising rents first hand. In February 2022, shortly before the outbreak of war, he moved into his former apartment. A few months later, the odyssey began. He tells Watson: “Late last year, the landlords raised my rent for the first time, not as drastically as in other cases, but I find the mere fact that each landlord has absolute freedom to set the rent problematic.”

In January of this year, the landlord decided that he would sell the apartment – Majstorovic and his partner had to move. Majstorovic does not know to whom the apartment was sold. He does not exclude that the new owners are wealthy Russians. Because most of the apartments sold in the cities of Belgrade and Novi Sad are not sold to Serbian nationals, but to Russians.

Majstorovic and his partner started looking for a new apartment and were faced with “astronomical prices” that were much higher than a year ago. Majstorovic explains: «After a long search, we found an apartment. The rent of the new apartment is one and a half times higher than that of the previous apartment. And what’s even more devastating, you could say we got lucky with this find.”

Although Majstorovic had a difficult start to the new year, he still sees himself in a privileged position. Many of his friends and acquaintances were hit harder. “Some of them got very short notice periods, while others doubled their rent, so they too had to look for a new apartment very quickly,” he explains.

‘The state is no longer seen as a guarantor of basic needs’

But he also sees several ways out of the precarious situation: “One of the solutions to this situation could be greater investment in the construction of social housing or attempts to participate in community projects based on existing models across Europe. “

For Majstorovic, the current housing shortage and sky-high rents are no coincidence. “Since the 1990s, our country’s attitude to housing has changed dramatically. The state is no longer seen as a guarantor of basic human needs, including housing, but as a guarantor of the application of market principles. During the wave of privatization that followed the collapse of socialism, Serbian citizens living in public and social housing were encouraged to buy these housings at relatively low prices – thus taking ownership of the houses they live in,” explains he out.

He is very critical of the prevailing building culture in Serbia: “Nowadays, building is no longer done to achieve social well-being, to satisfy needs and to create the most comfortable living environment for citizens. The primary concern is that the investors who own the land can maximize their profits. This means that today, apart from housing projects, no other facilities necessary for the dignified life of the citizens are being planned – instead, every inch of land is used for housing.”

The current situation worries him more and more: “Many people in Serbia live in rather unsafe conditions and may be at risk of becoming homeless.”