The construction sector did not avoid the trend of rising prices either. Energy and materials have become more expensive all over the world, and this has ultimately led to higher prices for services and real estate. There is no end in sight to this trend, Federalna writes.
Restrictions on movement and price increases caused by the coronavirus pandemic, the so-called the trade war between China and the US, and then the additional difficulties due to the war in Ukraine. Consequences of the increase in the price of electricity, oil and gas, which led to the increase in the price of all services, including in the construction sector.
“In February last year, we had two price increases, and after that it started to rise in price every 15-20 days,” says Mile Petrovic, secretary of the Association of Construction and Building Materials Industry at the RS Chamber of Commerce.
“There were different blows by product groups. Construction iron felt the strongest consequences. Prices have risen by up to 80% last year, “said Enisa Kadic, secretary of the Association of Construction and Building Materials Industry at the FBiH Chamber of Commerce.
“The price increase is still going on so that the exact price of the increase cannot be determined, but we can say for sure about 25%,” says the director of the construction company Danijel Ruzic.
Thus, the prices of iron, wood, insulation and other construction materials have grown, are growing and will continue to rise, and as the purchase of materials is more expensive, so are services and real estate.
“If the growth of prices continues with this expansion, investors will certainly not be able to build at these prices. We cannot expect that, if there are additional price increases, and it has been announced that there will be them, apartments can be built at these prices “, points out Petrovic.
The situation is the same in other countries, only there are examples of those who find long-term solutions, which could reduce at least some aspects of the increase.
“For example, Turkey, which has prepared its capacities and plans to take long-term strategic measures, increase production and that this production can be placed on the European market. It will appear as another supplier, together with those from the Far East, which will significantly lower the price, if nothing else, due to the transport markets “, explains Kadic.
Certain material is also produced in Bosnia and Herzegovina, but resources are procured from other countries, which again brings problems.
“And for what is produced, raw materials are procured from all over the world. This is where the problems of global transport and procurement of construction materials and all materials in general arise. Everyone is announcing price increases, the duration of which is difficult to determine “, emphasizes Ružić.
The prices of everything – from energy to materials – are constantly rising, and the end of expansion is not in sight. The problem, which the interlocutors mentioned, is the lack of qualified labor force. They said, however, that our construction sector is strong and vital, but that it is necessary to invest, maintain it and create long-term plans, which could ensure stability.
