Low-cost Apartments in Serbia

By: Bojana Jankovic
Kragujevac, ,Feb. 06 ,2010 (Serbia Today) - Building of the first low-cost apartments will begin in May this year. The investors are receiving building permits for the provided locations in Nis, Novi Sad and Kragujevac. However, it is not enough, because investors are asking the state to specify conditions with banks’ lending; that the debts should be reprogrammed to two years but also that some construction companies should not be favorites..
Recently adopted, the Regulation of transfer laws of usage of property over city’s construction lands, should accelerate the construction of apartments. Accumulated stocks of construction materials are going to be used in building these low-cost apartments.
Price of a square meter will depend on the location and infrastructure, but can not be higher than 1 600 Euros. The government representatives say that the citizens are very interested about the announced construction of low-cost apartments.
“To start running this construction cycle, the Investors have to start buying the land, and the Bank to accelerate the approval of subsidized credits.”- said Mr. Goran Rodic from Serbian Chamber of Commerce.
The largest settlement in Belgrade will be built in Vozdovac, while the area of the former military barracks will provide building of about 4 000 apartment units. Price of a square meter should be about 1 300 Euros. Ministry of department will build plan documentation and issue a building permit. The city will provide the infrastructure. Building Directorate of Serbia is a project manager. On this occasion, Minister of Environment and Spatial Planning, Oliver Dulic said, “Building Directorate will be the user of funds for project financing, will sell the apartments and negotiate building of all these apartments with the work groups of Serbia.”
Real estate agents believe that the construction of low-cost apartments will break monopoly, but that prices will not fall. The invitation for the construction of low-cost apartments was sent to all construction companies that have prepared the locations, and to the local governments to reduce the price of compensation for construction sites preparation.