New wave of price rises expected on real estate market

Pavel Caba, chairman of the Employers Federation of Builders, Road Workers and Building Material Producers “Condrumat”, said during public debates that the prices of apartments may rise by 4-5%. According to Pavel Caba, the price of bricks rose by 24% since the start of this year, of metal – by 10%, of cement – by 12%, while of cable products – by over 30%. The price rises will inevitably affect the prices of new apartments. However, the prices will depend on how the developer negotiates with the investor – to increase the prices or to reduce the benefits. The prices may remain unchanged in the buildings whose resistance structure was finished before the prices of construction materials increased or before the stores were used up. “Some of the developers will have to stop work and finish one or another building. They may increase the prices by 4-5% so as to fulfill their obligations to the investor,” said Pavel Caba. The prices will also depend on the situation on the fuel market and on inflation. “A person does not want to work on a low salary now. Earlier, they worked for 3,000-4,000 lei, but now do not want. We do not dramatize, but must work out strategies and prepare the legal framework,” said the chairman of “Condrumat”.

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