Serbian Companies Own Over 80,000 Properties; State Firms Hold Largest Share

Companies and institutions in Serbia collectively own 82,887 properties, with state-owned enterprises and local government bodies holding the majority. This extensive property portfolio highlights the significant real estate holdings within the Serbian corporate sector. The data, compiled by the credit rating agency CompanyWall, reveals a strong presence of public entities among the largest owners.

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The most common reason for a company to decide to buy real estate is usually business expansion. As a company grows, it needs new production facilities, offices, warehouses, or business premises in other locations.

Local government institutions are particularly dominant. The City of Zrenjanin leads with 4,333 properties, followed by the City Assembly of Jagodina with 3,839, the Sombor City Administration with 3,354, and the City of Belgrade with 3,060. State-owned energy company Elektrodistribucija Srbije also ranks high, possessing 2,943 properties. This concentration of ownership in the public sector is attributed to the vast number of business premises, land parcels, and public utility buildings managed by cities and municipalities.

Private companies that feature prominently are typically large systems in the energy, agriculture, and food processing industries. Their property acquisitions are driven by diverse business and financial strategies. Manufacturing companies often purchase factories, warehouses, and land as essential operational resources. Retailers acquire commercial spaces, while logistics firms invest in distribution centers. Agricultural enterprises buy arable land, orchards, and vineyards to expand production.

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Real estate is considered a relatively safe form of investment, so companies buy it to preserve capital value or generate income from leasing.

Beyond operational needs, companies acquire properties for investment and capital preservation. Real estate is viewed as a relatively secure asset, offering potential returns through rental income or by safeguarding capital value. Owning property can also facilitate access to bank loans, serving as collateral for new investments. In some cases, companies acquire other businesses specifically for their real estate assets, such as land or strategically located buildings, rather than solely for their operational activities. However, the sheer number of properties does not always equate to high asset value; a company might own thousands of small parcels, while another may own fewer but more valuable real estate.

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A large number of properties does not necessarily mean a large asset value. One company may have thousands of small cadastral parcels or infrastructure facilities, while another may own only a few properties whose market value is many times higher.