Source: Beta | Monday, 24.08.2009.| 22:29
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DULIC: Construction of cheaper apartments starts in March, 2010

Oliver Dulic

Minister of living environment and environmental planning, Oliver Dulic, stated today (August, 24th, 2009) that during September, Government’s working group should make a public presentation of the model for mass construction of cheaper apartments, which should begin in March of 2010.

- Apartments to be built according this model will not be luxurious and most of them will be between 40 to 60 square meters, Mr. Dulic said at the round table about mass apartments’ construction, held in Belgrade Chamber of Commerce. On this occasion, Mr. Dulic also mentioned that all citizens of Serbia will be eligible to apply for these apartments.

According his words, “the construction price of apartments is almost exactly the same” in the whole country, but it is still soon to talk about the final price for this type of apartments, as it will mostly depend on the city, on the location, on building land price, on military participation or municipality participation in construction process.

Mr. Dulic pointed out that the price of cheaper apartments should be such that credit monthly payment can be contributed from an average salary, but also such that everyone in the entire chain of project planning to final construction can make some profit.

According Mr. Dulic, “the state can not be investor in this project”, but instead it will be “providing and giving subvention” for apartment loans and it will be a mediator between the banks, construction companies and the buyers.

- The model (mass apartment construction) will not be unique, said Mr. Dulic, explaining that it will be adjusted to each city and to each municipality, and it will also have to be such that the banks find their interest to joint the project.

“The project is not possible to organize in all cities, but already in the ones with the need”, said Dulic, adding that they will build as many apartments as the citizens ask for, that is, for as much time as long as exists the need for that kind of apartments.

Minister for infrastructure, Milutin Mrkonjic, addressed representatives of construction companies that participated in the meeting, saying that he will make sure that the project planning work and construction of apartments is given to domestic companies.

Mr. Mrkonjic said that Belgrade, as the largest real estate market and the city with around 100.000 lessees, should serve as a model for mass apartment construction, meaning that Belgrade will be the city where the project will be started.

President of Belgrade city Parliament, Aleksandar Antic, said that the capital is interested in mass apartment construction.

“The city will give its contribution to realization of this project”, he said, adding that Belgrade was ready to consider “reduction of fees for the city building land”.

Assistant Minister of Defense, Ilija Pilipovic, confirmed that Serbian Army was interested for the project of mass apartment construction, as around 14.000 of army employees had not solved residential problem, while around 5.000 of them do not have adequate solution for their residency.

Pilipovic said that Ministry of Defense was using land in the property of Republic of Serbia, “which is in most part still not urbanized, but only equipped with infrastructure” and he added that the location is not a problem, but the money necessary for investment in the apartment construction.

As the biggest problem in construction sector, as claimed by the representatives of construction companies and from the industry of construction materials, is paying of tax for invoiced but not paid apartments. Also what they mentioned as a problem is that tenders often favored certain participants, banks ask for large interest rates for residential credit loans and lack of financing of construction companies according planned schedules.

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