Tuesday, 15 September 2026
Belgrade’s office market is sending two apparently conflicting signals. Modern buildings have very little available space and prime rents continue to rise, yet companies signed considerably less office space during the second quarter of 2026 than they did a year earlier. Office take-up reached approximately 33,400 sqm during Q2, reflecting a quieter leasing period compared with the same quarter of 2025. At the same time, the citywide vacancy rate stood at only around 4.5%, leaving occupiers with relatively few immediate choices when searching for alternative premises.
Part of the explanation lies on the supply side. Only about 6,000 sqm of new office space was completed during Q2, meaning there was little fresh stock available to accommodate companies considering relocations or expansion. In a market where existing modern buildings are already highly occupied, limited new construction can restrict leasing activity even when companies remain interested in moving. Lease renewals have consequently become an important part of the market. For companies already occupying good-quality offices, extending an existing agreement can be more practical than searching for another building offering the right combination of location, specification, size and price.
This means low vacancy and relatively weak leasing activity do not necessarily contradict each other. They may, in part, be different consequences of the same shortage of suitable space. The situation is particularly important in Belgrade’s better office locations, where modern buildings continue to attract occupier attention. Companies are increasingly selective about workplace quality, efficiency and accessibility, making headline citywide vacancy less useful as a measure of how much genuinely desirable office space is available.
This preference is creating a widening distinction between newer offices and older buildings. Prime properties can benefit from limited availability and stronger tenant demand, while ageing stock faces a different challenge. A building may technically provide vacant space without necessarily meeting the standards companies now expect from their workplaces. Prime rents have responded to these conditions, reaching approximately €19 per sqm per month. Rising rents alongside subdued leasing provide another indication that scarcity rather than rapidly expanding occupier requirements is influencing the market.
However, Belgrade is approaching a significant supply test. Approximately 139,000 sqm of office space was under construction during Q2, representing a substantial addition compared with the limited amount delivered during the quarter. Close to 60% of this pipeline is concentrated in the CBD, where available space remains particularly scarce. As these projects are completed, the market should gain a clearer picture of underlying occupier demand.
If new Grade A buildings lease quickly, it would suggest that current take-up figures have been constrained partly by a shortage of appropriate space. If absorption proves slower, the new supply could instead reveal that companies have become more cautious about expanding their office footprints. Hybrid working is likely to form part of that discussion, but it should not be treated as the sole explanation. Greater flexibility, more efficient layouts, economic uncertainty and tighter control of occupancy costs can all influence corporate requirements.
At the same time, companies that reduce their overall footprint can still demand better offices. A business moving from a larger older property into a smaller modern building may occupy fewer square metres while increasing the quality of its workplace. Such behaviour would strengthen demand for prime buildings without necessarily producing large increases in overall leasing volumes.
This creates an important challenge for owners of secondary offices. As new projects increase the amount of modern space available, older buildings may have to compete through refurbishment, more flexible leasing arrangements or lower rents. The current 4.5% citywide vacancy rate therefore hides potentially significant differences between individual properties and locations.
For developers, the timing of the pipeline will be equally important. Belgrade currently has enough scarcity to support prime rents, but the arrival of approximately 139,000 sqm of space currently under construction could alter the balance between landlords and occupiers. How quickly that space is absorbed will determine whether today’s shortage persists or begins to ease.
Belgrade’s office market is therefore not simply experiencing weak leasing or strong occupancy. Both conditions exist simultaneously. The city has very little immediately available modern office space, while companies are becoming increasingly selective about when, where and how much space they lease. The next wave of office completions should provide the clearest indication yet of what is driving the market. If occupiers move rapidly into the new projects, Belgrade’s subdued leasing figures may prove to have been largely a consequence of insufficient supply. If they do not, the city could discover that exceptionally low vacancy has been concealing a deeper change in corporate demand.
Source: CIJ.World Research & Analysis Team
