The partly regulated property market: what it means for apartment buyers

The term “partly regulated market” worries many buyers. What does it mean in practice when you buy an apartment?

Besides price, build quality and living conditions, it is important to understand the legal status of a property. Is it safe to buy an apartment that is not yet registered? How is it different from buying a used one? And what tax relief do first-time buyers get in a new or an older building?

What is the partly regulated market?

The Republic Geodetic Authority (RGZ) tracks transactions in a regulated and a partly regulated market. The regulated market covers properties whose legal status is settled, usually registered in the cadastre with clear ownership. The partly regulated market covers transactions where some elements of the legal status are not yet fully settled or recorded; new apartments sold during construction make up a large part of it. That does not mean the construction is illegal or the sale not allowed, but the buyer must pay special attention to the documents, the investor and the contract.

Is buying on the partly regulated market safe?

Buying an apartment under construction is common and legal in Serbia; safety depends on the specific building and the seller. Check:

• the building permit, and that it covers the apartment you buy
• the investor: experience, completed projects, business and any financial difficulties
• the land and encumbrances: ownership or rights to the plot, mortgages and other charges
• the purchase contract: completion dates, payment schedule, specification and the investor’s liability for delays
• the conditions for the occupancy permit and registration after completion

City Expert works with verified partners with many completed projects; our new-build agents support you from choosing a project and arranging a housing loan to receiving the keys, free of charge for buyers. Call 011 44 26 000.

New build or older building?

Buying early in construction often brings a wider choice of floors, orientation and layouts and a lower price per square metre, and first-time buyers may get a VAT refund. The secondary market covers apartments resold by previous owners, usually older buildings but also relatively new ones; you can see the condition directly, but its legal status still needs checking. First-time buyers of an older apartment may be exempt from the property transfer tax.

All properties we publish are checked for their legal status, and our agents guide you from the first to the last step.

Frequently asked questions