Selection of contractors for construction of 5,000 cheap apartments in Belgrade in July

Open competition for selection of contractors for construction of 5,000 apartments in the location of barracks "4. juli" in Belgrade should be announced in July. Until then, the investor, that is, the state, should prepare the project documentation and provide the location and building permits.

The project will, most probably, be managed by the Building Directorate of Serbia on behalf of the Government of Serbia. Hundred facilities with 50 apartments each should be built in the parcel of about 14 ha in 18 months. Since this location is partially in the second and partially in the third Belgrade's zone, maximum price per square meter is 1,590 and 1,290 EUR, respectively.

According to the regulation passed by the Government of Serbia, the state will be the first to start realization of the project for massive residential construction and, thus, raise the country's building operative almost from "the dead". The location of barracks "4. juli" near Trošarina will be used for construction of gross 360,000, that is, net 300,000 square meters. It will be typical construction, which will, thanks to the size of new housing space, result in significantly cheaper price of apartments. Of course, the building materials used in construction will be of high quality. All this means that the square meter may be even cheaper when offered for sale than it is determined by the maximum price. Maximum price primarily concerns investors who need to provide land and permits for location and use by themselves, while the state will only pay the interest rate of 7% for project finance instead of them.

- The price of apartments in the vicinity of Trošarina will be definitely attractive for majority of subtenants - says Goran Rodić, the Secretary of the Civil Engineering Association within the Chamber of Commerce of Serbia.

- The location already has some infrastructure, and the apartments will be built by the companies that offer the best terms. I am sure that that will be the companies that are recognizable in building industry, the companies that have expert staff, references and adequate equipment for such massive construction. Since it is the location used by the Army, part of the apartments will, most certainly, be placed at the disposal of the Army of Serbia and the Ministry of Internal Affairs.

This project will enable production of about 300,000 square meters of parquet floor, millions of bricks, tens of thousands of tons of iron and cement, and it will also create direct and indirect jobs for few thousand workers. According to Rodić, this project will also reduce social tensions, which are growing daily.