Why is the price of a square meter in a new building in Serbia jumping?

Construction materials containing steel rose in price by up to 40 percent in January, and many other manufacturers, mostly of thermal insulation products, announced higher prices, find out News. According to experts in the construction and real estate markets, this could affect the price of apartments, even more significantly.

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– The price of iron jumped from 30 to 40 percent, so that all steel products became more expensive in different percentages – she told News, Tanja Aprcović from a well-known warehouse. – For example, the reinforcement mesh was sold in November from 520 to 530 euros per ton in dinar equivalent, and in January from 700 to 720 euros. The prices of steel sheets, boxes have also increased …

Many producers, as he states, have announced price increases. These are mainly those who make thermal insulation products, such as styrofoam, styrofoam, rock wool and the like.. According to her, the sale of construction materials at their warehouse last year was the best for the last decade and a half.

Kaca Lazarevic, the owner of a Belgrade real estate agency, believes that she is construction material has become more expensive because much more is being built and he points out that this can certainly raise the price of the apartments that are being built now.

– The demand for apartments is huge, which means that there is room for price increases – Lazarević explains for our paper. – Now we have a shortage of apartments on the market, and the reason is that the whole of Serbia has moved to Belgrade, Novi Sad and Nis.

The most important factor influencing the formation of the price is, as he states, the city construction land which is extremely expensive in our country unlike the countries in the region, and then the construction material and the market.

Goran Rodić, from Construction Chambers of Serbia, has a similar opinion and points out that the market has the final say.

– How much the increase in the price of raw materials will participate in the final price of the apartment, depends on the market – says Rodić for our paper. – If the demand is higher and there is space, it will certainly increase and vice versa.

Assessing only in relation to the construction material, he believes that iron, which participates in the price per square meter with 30 to 40 percent, could have very little effect on the increase in the price of apartments that are currently being built.

– But, if the prices of insulation and other materials jump, and that usually goes in a chain, then that price increase could be more significant – explains Rodić.

The pandemic did not significantly affect the real estate market in Serbia. During March and April last year, during the state of emergency, there was a decline in the purchase of apartments due to physical restrictions, but sales continued to grow from May. Prices in new construction are higher last year and now more than in 2019.

Source: Gradjevinarstvo.rs – VESTI by www.gradjevinarstvo.rs.

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