UDC 347.27(497.11)
Biblid: 1451-3188, 21 (2022)
Vol. 21, No 77-78, pp. 140-155
DOI: https://doi.org/10.18485/iipe_ez.2022.21.77_78.9

Оriginal article
Received: 12 Mar 2022
Accepted: 06 Apr 2022

REVERSE MORTGAGE – POTENTIAL FOR REAL ESTATE MARKET DEVELOPMENT IN THE REPUBLIC OF SERBIA

MAJSTOROVIĆ Marija (Факултет за пословне студије и право, Универзитет „Унион – Никола Тесла”, Београд), majstorovic.m@live.com

The real estate market in Serbia expanded in the last decade due to the increased construction and investment activities of domestic and foreign investors as well as an increased supply of housing loans, which increased supply and demand but also real estate prices. The new market tendencies have broken the decades-long stagnation of the real estate market, which was a good indicator of the achieved macroeconomic and political stability. However, the domestic real estate market still lacks a wider range of financial and insurance products/services that exist in developed real estate markets such as the US, Canada, and Australia, or in Europe. One such product is the “reverse mortgage”. In the US and the EU, the reverse mortgage is a type of financing that is quite popular since it has double effects in increasing the financial power of the elderly population and the development of the banking sector. Since this financial product is not present in domestic regulations, I will present its basic characteristics and point out the positive practise that exists in some European countries regarding its implementation, which may be important for improving the domestic real estate market. The development of this product on the domestic market presupposes the establishment of an adequate legislative framework and financial system that would enable an optimal system of financing the population.

Keywords: Reverse mortgage, real estate market, comparative law, European Union law, domestic legislation, Serbia