Construction of housing complex Stepa Stepanović - cheap apartments instead of barracks 4. juli in Voždovac

Barracks 4. juli in Voždovac in Belgrade will be the first location where a modern housing complex for few thousand people will be built as a part of the project for construction of cheap apartments. At the meeting of the Government of Serbia on Thursday (February 18, 2010), the Ministry of Defense will made the decision on allotment of the land of former barracks 4. juli to the state in order for the construction of about 5,000 apartments to start. The prices of these apartments should not be higher than 1,290 EUR per square meter. According to the plan, total of 10,000 cheap apartments should be built all around Serbia.

The Government of Serbia adopted the Regulation on financing construction of cheap apartments in late January, which should, as it is announced, enable construction of 10,000 cheap apartments in few months. The Regulation was passed with the aim of employing building industry and lowering prices of apartments. Upon the adoption of the Regulation, Oliver Dulić, the Minister of Environment and Spatial Planning, said that the apartments would be built in Belgrade, Novi Sad, Niš and Kragujevac, and that the construction in other cities in Serbia would depend on expressed interest. He also said that the determined maximum price of square meter was 1,595 EUR, while the minimum price was 695 EUR.

– In return for the allotted land, the Army will get certain number of apartments in several cities that are under the authority of the Building Directorate of Serbia. This Directorate will be the coordinator of the project for construction of residential-business complex Stepa Stepanović in Belgrade, and the city authorities will be provide infrastructure. The Government of Serbia will advise local building companies to join to build cheap apartments. The first citizens who buy these apartments will be able to move in them next year - it is stated by the Government of Serbia.

About 2bn RSD have been provided for subventions for part of the interest on the loans that the banks will grant to investors. Average interest rate should range between 9 and 10%. The banks will be selected at the open competition, and the main criteria will be the offered interest rate, fee and other crediting terms.

People will be able to buy these and all other apartments on lease because the Ministry of Finance explained that there is no need for changing the regulations only because of that. The basic advantages of leasing over the loan are smaller risk and procurement of apartments without mortgage. The security of the one who buys the property on lease is higher because if the buyer of apartment can not pay the installments, he stays only without that property, while the loan user also loses the mortgaged property that is given as the security for the loan.

Last year only few thousand apartments were built because of the economic crisis, and the building operative registered drop in results of over 40%.

Prices of apartments

- Square meter of housing space in Belgrade's second zone will cost 1,595 EUR, the price in the third zone will be 1,290 EUR, while square meter in the fourth zone will cost 945 EUR; the price of square meter in all other zones in the capital city will amount to 895 EUR. The apartments will not be built in the first and extra zone.

- Square meter in Novi Sad's first zone will cost 1,100 EUR, while the price in the second zone will be 895 EUR
- The first zone in Niš and Kragujevac will cost 900 EUR per square meter, while the square meter in the second zone will cost 695 EUR
- Square meter on the territory of other cities and municipalities will cost 695 EUR

(Note: complete text is taken over from newspaper Blic of February 14, 2010)