Housing Becomes Major Social Issue in Serbia, SRCE Party Claims Real Estate Market Fuels Money Laundering

Housing has emerged as one of Serbia's most pressing social challenges, with the Srbija Centra (SRCE) party asserting that the real estate market has transformed into a "money laundering mechanism," driving up prices.

The party's finance and economy committee stated that owning an apartment remains out of reach for most citizens. They argue that price increases are not solely dictated by market conditions but by the market's function as a tool for illicit financial activities. This issue is particularly acute in Belgrade, where central district prices average around 5,300 euros per square meter. This figure represents five times the average monthly net salary, a less favorable ratio compared to cities like Zagreb, Bucharest, or Sofia.

SRCE has put forward a series of interconnected housing reforms. A key proposal is the initiation of non-profit housing construction on public land. They believe that with tax and utility incentives for both construction and purchase, the cost price can be significantly reduced, making housing accessible to families with average incomes.

Furthermore, the party advocates for the establishment of housing eurobonds as a stable, long-term financing source for construction. This approach would prevent the burden from falling on the current budget and offer citizens and institutions a secure long-term investment instrument. SRCE also calls for decisive action against money laundering within the real estate sector.

Additionally, SRCE suggests developing rental models with capped rent increases. Affordable and predictable rent would provide housing security for those unable or unwilling to buy, easing pressure on the purchasing market and expanding the availability of accessible housing options.

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Potreban je i razvoj modela najma sa rentom ograničenog rasta. Pristupačan i predvidiv zakup obezbeđuje sigurnost stanovanja onima koji ne mogu ili ne žele da kupuju, rasterećuje pritisak na kupovinu i širi ponudu dostupnih stanova.