Property Management in Kragujevac: Letting an Apartment in Serbia's Industrial City

Kragujevac rarely comes up when foreign buyers talk about Serbian property. Belgrade and Novi Sad dominate the conversation, and Niš is catching up. Yet this city in central Serbia has something the two largest cities currently lack: rents that are still rising and purchase prices that remain well below Belgrade levels. The driver behind this is a mix of car manufacturing, a university and a regional hospital centre.

This article looks at the Kragujevac rental market from the perspective of an owner who does not live there: who rents, what rents and yields are realistic, how to furnish the apartment and who can look after it. For the basics of managing a Serbian property from abroad, see Rental Management in Serbia for Owners Living Abroad.

Kragujevac in figures

Kragujevac lies around 140 kilometres south of Belgrade in the heart of the Šumadija region and is easy to reach via the A1 motorway. According to the 2022 census, the wider city area has around 171,000 inhabitants and the city itself just over 146,000. That makes Kragujevac one of the largest cities in Serbia.

For landlords, three sources of demand matter more than the population figure:

The Stellantis plant. In the former Zastava and later Fiat factory, Stellantis now builds the Fiat Grande Panda in electric, hybrid and petrol versions. According to the state news agency Tanjug (May 2026), more than 3,000 people work there in three shifts, and output is set to rise in 2026 to up to 150,000 vehicles a year, with weekend shifts and several hundred additional jobs. Suppliers located around the plant add to this.

The University of Kragujevac. With around 18,000 to 20,000 students according to higher education portals, it is one of the country's large universities, with faculties including medicine, engineering and economics. The Faculty of Medicine is also attracting a growing number of international students.

The University Clinical Centre. As the regional hospital for central Serbia, it employs many doctors, nurses and junior doctors, who often move to the city for a few years.

Rents and purchase prices: what the data shows

A July 2026 report by biznis.rs, based on data from the state cadastre authority RGZ (Republički geodetski zavod) and the listings portal 4zida, paints a clear picture: while rents in Belgrade and Novi Sad are stagnating, they are still rising slightly in Kragujevac.

Source: biznis.rs based on 4zida, July 2026. Asking rents, not contract rents.

According to the same report, the average purchase price in 2025 was 1,446 euros per square metre, almost nine percent more than in the previous year. For new builds, Kurir Biznis (July 2026) quotes around 1,700 to 1,750 euros per square metre for completed apartments and about 1,400 euros in early construction phases.

On yield, biznis.rs uses the example of a 30 square metre studio: in Kragujevac the purchase price is recovered through rent in about 16 years, in Belgrade in 21 years. That corresponds to a gross rental yield of roughly six percent in Kragujevac compared with just under five percent in Belgrade. Purchase costs, vacancy, management and taxes are not included, so the net yield is lower.

A word of caution: averages from listings portals say little about an individual apartment. Location, condition, year of construction and furnishings are what count. Before you buy or let for the first time, get an assessment for your specific apartment.

Who rents in Kragujevac

The tenant mix is clearly different from Belgrade, where digital nomads, expats and short-stay guests play a large role.

Skilled workers and engineers from the plant and its suppliers usually look for well-equipped one- or two-room apartments with parking and quick access to the industrial zone. In some cases, employers rent directly for staff they send to the city.

Assembly and project staff stay for a few weeks to a few months, often in groups. This creates demand for furnished apartments with several bedrooms and flexible terms. Such tenancies bring higher monthly rents, but also more wear and tear and more frequent changeovers.

Students mainly rent studios and small apartments near the university, often for the academic year from September to June. How to time lettings around the semester cycle is explained in our article on rental management in Niš, using another university city as an example.

Medical staff at the clinical centre look for quiet, long-term homes and are considered reliable tenants.

Furnishing: what tenants in Kragujevac expect

For the target groups in Kragujevac, a fully furnished apartment is almost always the better choice. Skilled workers on temporary assignments and students rarely bring their own furniture. A functional basic setup is usually enough: a bed with a good mattress, a wardrobe, a dining table, a sofa, a fully equipped kitchen, a washing machine, air conditioning and a stable internet connection.

For project staff and corporate tenants, a few things matter in addition: a workspace, parking, good blackout blinds for shift workers and an uncomplicated check-in. If you let to companies, you should also be able to issue proper invoices, because companies need receipts for their accounts.

Long-term or flexible letting?

Kragujevac has no significant tourist short-stay demand of the kind seen in Belgrade. The alternative to a classic long-term let is mid-term letting to project staff or companies for a few weeks to a few months. It brings higher monthly income but needs more hands-on support: handovers, cleaning between stays, laundry and a quick response when something goes wrong.

For owners without anyone on site, a long-term let to a skilled professional or a doctor is usually the less stressful option. If you want the higher return of flexible letting, you need reliable support in the city.

Who looks after the apartment locally

The range of providers in Kragujevac is limited. There are local estate agents who find tenants and facility management firms that mainly look after commercial properties. Ongoing management of private rental apartments with English-speaking communication, on the other hand, is rare locally.

Realistic models are:

1. Local agent for the letting, your own management afterwards. Inexpensive, but once the apartment is let, you are responsible for any problems yourself.
2. A trusted person on site with a key for emergencies, combined with your own remote management.
3. Management from Belgrade with local partners for repairs. The distance of around 140 kilometres allows appointments in Kragujevac to be handled in a day, but it is no substitute for someone who can be at the door within an hour.

For a comparison with another university and growth city, see our article on rental management in Novi Sad.

Tax on rental income

Rental income from Kragujevac is taxed in Serbia. If you are tax resident in Germany, you also need to take the double tax treaty into account. How this works is explained in our article Avoiding Double Taxation of Rental Income Between Germany and Serbia.

Support from Exgentum

Exgentum is based in Belgrade and supports owners from abroad with letting and managing their property. If your apartment is in Kragujevac, we first work out with you which target group and which furnishings fit, and then discuss individually which services we can take on locally, such as finding tenants, handovers and coordinating local tradespeople, and how travel from Belgrade is factored in.

Frequently asked questions

Is a rental apartment in Kragujevac a better investment than one in Belgrade?

According to the biznis.rs data, the gross rental yield is currently higher in Kragujevac because purchase prices are lower and rents are still rising. Belgrade, on the other hand, offers a larger and more liquid market. Which suits you better depends on your goal: ongoing income or capital growth and resale.

How dependent is the market on the Stellantis plant?

The plant is an important driver of demand, but not the only one. The university and the clinical centre provide a second, more stable pillar. An apartment that appeals to skilled workers as well as to students or medical staff spreads the risk.

Which apartment size is in highest demand?

Studios and one-room apartments are popular with students and single professionals. Two- and three-room apartments suit families, doctors and groups of project workers.

Do I need to furnish the apartment?

For the typical target groups in Kragujevac, furnishing almost always makes sense. Unfurnished apartments mainly appeal to families who plan to stay long term.

Can I manage an apartment in Kragujevac from abroad?

Yes, with a reliable person or service provider on site. Without that support, handovers, repairs and emergencies quickly become a problem, because the journey from abroad is long.