Construction materials

Building materials have become cheaper, will property prices also fall?

Prices for building materials fell slightly. Citizens could therefore expect a stabilization of real estate prices. But, apparently, there will be no major reductions.

Compared to last year, the price per square meter of an apartment is about 30% higher and that of houses up to 10% higher. However, builders are talking about the possibility of a fall in the prices of real estate that will be built in the coming period, since a drop in the prices of some building materials, in particular iron, which is cheaper by 10%, has been recorded.

If the prices of other materials also drop, which we want, we change the prices per square meter. Last year, the price per square meter was 1,800 BAM, however, we reached a price of 2,200 to 2,400 BAM. Prices will fall in the same percentage as the price of construction materials,” says Dragana Gajic, director of a construction company.

On the other hand, a real estate agency estimates that the prices will not fall because the supply decreases and the demand increases. And this comes from abroad, because prices in our country, despite inflation, are among the lowest in Europe for real estate.

We currently have no new buildings under construction and we have a lot of demand, so people are forced to buy older, unrenovated or renovated apartments. The price of materials has jumped a lot, recently it is stabilizing, but not so much that we expect a downward trend in prices”, underlines Tarik Musabegovic, director of the real estate agency.

Economists, on the other hand, confirm that the world market is balanced and that price stabilization in our country is possible. However, they also tell us that a major drop will not happen.

A big drop in prices will hardly happen because reinforcements, building iron participate in the price with less than five percent, so if you have a reduction in the price of a component that has such a small participation, then it is difficult to expect that the overall product will be cheaper,” said economic analyst Zoran Pavlovic.

Therefore, he adds, the state should look to domestic sources of raw materials, as well as population policies. One of them would be to stimulate the first purchases of residential units, as in the canton of Sarajevo (CS).

Although it seemed that we would soon see a drop in real estate prices, this question remains open. And the question remains whether the authorities will intervene more effectively to help. Because investing in real estate is a permanent asset that stays in our country, and perhaps would also keep its citizens, federalna writing.

E.Dz.


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