The prices of construction materials recorded a slight decline. Therefore, citizens could 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 percent higher, and houses are up to 10 percent higher. However, builders point to the possibility of a drop in the prices of real estate that will be built in the coming period, as a drop in the prices of certain construction materials, especially iron, which is cheaper by 10 percent, has been recorded.
”If the prices of other materials also fall, which we would like, we change the prices of square meters. 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 building materials falls,” Dragana Gajic says, director of a construction company.
On the other hand, a Real Estate Agency believes that prices will not fall because the supply is getting smaller and the demand is increasing. And that is from abroad, because prices in our country, despite inflation, are among the lowest in Europe when it comes to real estate.
”We don’t currently have any new buildings being built, and we have a lot of demand, so people are forced to buy older apartments, unrenovated, or renovated. The price of materials jumped a lot, recently it’s stabilizing, but not so much that we expect a downward trend in prices,” points out Tarik Musabegovic, director of the Real Estate Agency.
Economists, on the other hand, confirm that the world market is balanced and that stabilization of prices in our country is possible. However, they also tell us that a major drop will not occur.
”Some major drop in prices will hardly happen because reinforcements, construction iron participates 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,” economic analyst Zoran Pavlovic believes.
Therefore, he adds, the state should turn to domestic sources of raw materials, as well as population policies. One of them would involve stimulating the first purchase of residential units, such as in Canton Sarajevo (CS).
Although it seemed that we will soon see a drop in real estate prices, this question is still open. And the question remains whether the authorities will step in more effectively to help. Because investment in real estate is a permanent asset that remains in our country, and perhaps it would keep its citizens as well, Federalna writes.
E.Dz.
