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Belgrade City Report
Q4 2016
CityReports
COPYRIGHT © JONES LANG LASALLE IP, INC. 2017 Belgrade City Report Q4 2016
Economy & Investment G
DP
Gro
wth
Q3
(y-o
-y)
2.6%
Inflation November y-o-y
1.5%
Unemployment Rate Q3
13.8%
Net
Sal
ary
Nov
embe
r
Source: Statistical Office of the Republic of Serbia
8.7%
Retail Sales Index
November y-o-y
464€
Industrial production November y-o-y
1.3%
According to the Serbian Statistical Office, during the third quarter of 2016,
GDP growth reached 2.6% on an annual level. According to Oxford Economics
data, based on the first estimates, the economy grew 2.7% in 2016,
underpinned by an upturn in investment in the second half of the year,
combined with a return to export growth and resilient household consumption.
Medium term growth will be supported by steady progress towards EU
membership, and precautionary IMF standby funding that insulates the deficits
against FDI downturn. The IMF released its latest tranche after a largely
positive December review, recognising progress on administrative reform, job
creation and fiscal rebalancing.
Tourist Arrivals Belgrade
Jan - Nov y-o-y
€
13.2%
Economics
In the recently published Doing Business list of the World
Bank, Serbia climbed to 47th place (previously 54th) and is
among countries which have made some of the biggest
progress. In addition, Belgrade has been named as the best
investment destination, in this part of Europe, and has received
a credit rating of B1 with a positive outlook.
The IMF will keep up the pressure for small business
promotion, state owned enterprise (SOE) restructuring,
financial sector reform, to make monetary policy more effective
and better management of the budget to keep the deficit
falling.
8.00%Retail
11.0%
5.6%
Imports
Exports/Imports Jan - Nov 2016 y-o-y
Export
Prime yields
COPYRIGHT © JONES LANG LASALLE IP, INC. 2017 Belgrade City Report Q4 2016
Supply Office stock / New supply
(’000 sq m)
Future office projects
Vacancy rate
Prime rents (sq m/monthly)
Demand
Office Market
• From the beginning of 2016 there has been an increase in construction activity
with several new buildings delivered to the market, mainly in New Belgrade.
• In 2016, market activity was dominated by
net take-up, underpinned by relocations
and new leases.
• The most active sector during the year was
IT, followed by professional services
New supplyOffice stock
1015
2015
641
Q4 2016
703
Property Submarket Size (sq m) Status
Napred blok 21 New Belgrade 13,000 Under construction
GTC Fortyone – 3nd phase New Belgrade 10,000 Under construction
Sirius Offices – 1st phase New Belgrade 14,500 Under construction
Atrijum 63 New Belgrade 5,000 Under construction
Deneza office builidng New Belgrade 2,700 Under construction
Usce Tower 2 New Belgrade 22,000 Planned
2015
20162014
€15- €17
2014
8%
2015
4.2%
Q4 2016
6.7%
A Class
7.0%
B Class
6.2%
Property Submarket Size (sq m)
Navigator Business centre New Belgrade 14,600
Airport City IV phase (Bldg 2) New Belgrade 12,000
GTC Fortyone bldg 2 New Belgrade 7,600
Green square Vracar 2,700
Renegs /
Renewals Net take-up
86%
14%
Recent completions
COPYRIGHT © JONES LANG LASALLE IP, INC. 2017 Belgrade City Report Q4 2016
Supply
Demand
Rental levels (sq m/monthly)
Belgrade Prime Shopping center density
Retail Market
78 sq mper 1,000 inhabitants
Shopping Centre High street
€25 - €27
€40 - €60
• CCC opens its first store
• The first Huawei Experience store
• New lease agreements for Belgrade Plaza
Prime shopping center supply (’000 sq m)
Future retail projects in Belgrade
Name Type Developer Size (sq m) Opening year
Rajićeva SC Ashtrom group 15,300 2017
Belgrade Plaza SC Plaza Centers 32,300 2017
Ikea BB Ikea 36,000 2017
Ada Mall SC GTC 33,000 2018
Capitol Park Rakovica RP Poseidon group 21,000 2017
Capitol Park Sombor RP Poseidon group 5,600 2017
• During 2016, market activity relied on the construction of retail parks,
with several new schemes delivered throughout the country.
Location City Brand
Stop Shop Valjevo CCC*
Ušće shopping centre BelgradeHuawei
experience*
Stop Shop Niš Cineplexx
Existing stock New supply
2015 2017
127 127
2016
48
175
Name Developer City Size (sq m)
Shoppi MPC Properties Belgrade 12,000
Stop Shop Immofinanz Valjevo 6,100
Stop Shop Immofinanz Niš 10,000
Shoppi MPC Properties Subotica 13,000
SC = Shopping centre, RP = Retail Park, BB = Big Box
Retail park completions in 2016
* Market entry
COPYRIGHT © JONES LANG LASALLE IP, INC. 2017 Belgrade City Report Q4 2016
Property Location Type
Industrial Park Belgrade ŠimanovciDistribution
warehouse
Grindex Kikinda Light industrial
Aster Tekstil Niš Light industrial
Future projects
Demand
Supply / Stock (’000 sq m)
Prime Rents (sq m/monthly)
Industrial production index
Industrial Market
• Strong demand from manufacturing and distribution
companies during 2016.
• Further expansion of the retail and logistic sectors
will be the major market drivers over the mid-term,
underpinning the development of speculative
schemes.
• During 2016, market activity relied on the delivery of light
industrial and distribution warehouse schemes throughout the
country.
• Schemes for owner occupation purposes remained dominant.
• The most active areas were Vojvodina and Greater Belgrade.
2014 €4 - €5
2015€4 - €5
2016 €4 - €5
• Future supply will be concentrated in the most developed areas and
established industrial zones throughout the country.
Investor Location Type
Eyemaxx bldg 2 Stara Pazova Distribution warehouse
Industrial Park Belgrade 3 Šimanovci Distribution warehouse
Lidl Nova Pazova Distribution warehouse
Univerexport Novi Sad Distribution warehouse
Mei Ta Obrenovac Light industrial
Source: Statistical office of Repblic of Serbia
516 sq m 242 sq m
Greater Belgrade Belgrade
90%
95%
100%
105%
110%
115%
120%
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Andrew Peirson
Managing Director
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Jana Golubović
Senior Research Analyst
+381 11 785 0589
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