Russian stampede to Belgrade: Apartments bought for cash, rents paid for six months

(Patria) - Shortly after the war in Ukraine began, Russian citizens started flocking to Belgrade. Their much higher purchasing power than the average Serbian citizen has caused a tectonic shift in the real estate market: rental prices and apartment purchase prices have skyrocketed. A new problem could arise after Vladimir Putin's latest decision on partial mobilization of the population.

Although real estate experts say it is too early to make assessments, but that those unofficially informed about the large number of Russian citizens arriving in Serbia since Wednesday, private property owners are already seeing a difference.

One of the managers responsible for renting out a chain of private apartments in Voždovac says that apartments are being rented for periods longer than six months.

"This is an indicator that they do not intend to return there so quickly," says the source for Nova.rs.

Depending on the size of these apartments, the price range is from 25 euros for the smallest to 120 euros for the one with the largest square footage.

"They mostly opt for those where the night costs an average of 60 euros, but there is always an option for the booking to give you a slight discount," she states.

She also points out that in the past two days, travelers from Russia have been arriving mainly on night flights and reach the apartments very late. They arrive scared and desperate.

Miloš Mitić from the agency "City expert" says that the rush of Russian citizens has not stopped since March.

"Russians make up the majority of demand for apartments, not only in Belgrade but also in Novi Sad. What is important to emphasize is that they have influenced more expensive rents and prices per square meter because they are in a hurry and have more money than our buyers," says Mitić.

He adds that the interest is so high that the latest surge after the declared mobilization has not even been felt yet.

"The market is limited by the number of apartments it can offer. Prices have not changed much since the jump in March or April," says Mitić.

He states that he has unofficial information that interest in buying apartments has particularly increased and that it is about "cash purchases".

"While the number of credit buyers has decreased, Russian citizens are still here and will influence the price to remain at a high level," says the source for Nova.

Davorka Tasić from the agency "Moj kvadrat" is of a similar opinion.

"Too short a period has passed, only two days, for us to feel the pressure. There is still a relatively normal situation," says Tasić.

She reminds that the prices per square meter and rent are exorbitant, and will remain so as long as there is such high demand.

After Russian President Vladimir Putin declared partial mobilization in that country, the first planes with Russian citizens headed for Belgrade, which also led to more expensive plane tickets.

One might say that the aviation industry does not remember a day like the one when mobilization was declared – a three-hour flight in economy class for almost 10,000 euros. That's how much those who decided to leave Russia after Putin's announcement of partial mobilization had to pay.

"The ticket price depends on many factors – at what moment the ticket was bought, on the flight capacity on a certain route, so there are many factors that the ordinary consumer doesn't even see. It is certain that there is great interest in flights from Russia, given that only a few carriers fly, and those flights were probably quite full even before. Now, of course, there is a rush for people to leave the country, but people are constantly leaving Russia," says aviation industry expert Jelena Banac.