Relevant international research on the impact of the metro on the real estate market shows that proximity to the subway can increase apartment values by up to 11 percent. The value of real estate is proportional to the accessibility and functionality of a given location.
A multi-decade Belgrade dream of a city metro will become a reality in the foreseeable future. The first two lines of the future subway system will intersect in the area behind Sava Square, near the future Historical Museum of Serbia and the most modern educational campus, where the first metro station is going to be located, while the second is going to be near the multifunctional creative centre Ložionica. Residents of Belgrade Waterfront will thus be close not only to the Sava’s bank and many other amenities in the immediate vicinity but also to all other parts of Belgrade, which will be just a fifteen-minute drive away.
For city dwellers, accessibility and connectivity have become more important than ever. Experience shows that potential apartment buyers prefer properties near metro lines and are willing to spend more than originally planned. Proximity to metro stations is often considered one of the main factors affecting the value of urban land and apartment prices, so an increase in real estate values along the subway route can be expected. The metro will significantly ease the daily lives of citizens and visitors of the Serbian capital.
For example, the metro construction in Santiago, the capital of Chile, significantly contributed to changes in the real estate market. When the city received a new metro line in 2005, there was a notable increase in apartment values, ranging from 4,1 to 7,9 percent after construction began, and from 3,9 to 5,4 percent after the announcement of the exact locations of the stations.
Another bright example of ongoing urbanization is Hangzhou in China, a city that has flourished thanks to the construction of the metro, where a rise in property values was also noticed after the metro was put into operation. In Shanghai, a new metro line contributed not only to significant time savings during travel but also to an increase in property prices by 3.75 percent.
A study by the University of Sannio in Benevento near Naples demonstrated that the proximity of a station and increased traffic on a specific metro line particularly impact the rise in apartment values. The study showed that the impacts of the metro system in Naples on real estate values are significant and that with corresponding external benefits, they are estimated at around EUR 7.2 billion or about 8.5 percent of the total value of real estate assets. An interesting example is Helsinki, where a four percent increase in property prices was recorded within an 800-meter radius of new stations, five years before a metro line was put into service.
Moreover, the direct economic benefit of proximity to and use of the metro is reflected in savings on time and money spent on other means of transportation, and significant contributions to maintaining a healthier environment cannot be overlooked. Belgrade Waterfront can boast of being a neighborhood with the best sustainable transport solutions, as you can reach any location within it on foot, by bicycle, or by rollerblading in just a few minutes.
Proximity to metro stations and thus all parts of the city positively impacts daily routines, productivity, and quality leisure time. Knowing that you no longer have to spend hours commuting to and from work, and that schools, kindergartens, the Sava’s bank, parks, and playgrounds are within easy reach, creates numerous opportunities to enrich your day.