Government to continue construction of Stepa Stepanovic and to provide subsidized housing loans

(Stepa Stepanovic)

Construction workers are unemployed, and the real estate market is facing a decrease in both supply and demand. The line Ministry announces continuation of public housing and subsidized loans for the purchase of new flats.

Construction and sales of apartments four years ago was one of the most lucrative jobs. Then in a construction operation activities 120,000 workers were employed and today the figure is smaller than 70,000.

- At this moment, according to the official figures, we have over 22,000 uncompleted flats. Installments and high interest rates are underway and it is questionable what will happen to these apartments - Goran Rodic, the Secretary of the Serbian Chamber of Commerce for building.

Nebojsa Rapajić from the SCC Board of Real Estate states that in comparison to the beginning of crisis to date, sales fell to 50% and in some areas maybe even more.

- The most difficult thing is license obtaining. License is obtained in a year to year and a half; the documentation procedure takes time to even start construction. Builders expect government help - Rapajic says.

Goran Rodic from the Committee for the SCA said the construction industry was asking to reschedule all loans taken for production, to lower interest rates.

- These are exorbitant loans to stimulate export-oriented firms - Rodic said.

As announced, the government will continue building settlement Step Stepanović in Vozdovac and Dr. Ivan Ribar in New Belgrade as well as subsidizing loans for purchase of flats in new buildings

- We can not stop the works, we need to finish them because money has been invested, contracts have been signed, and obligations have been assumed by the previous government. We have to complete all of that and put into operation and provide people who have started buying to use it- Velimir Ilic, the Minister of Construction and Urban Planning says.

Ilic said credit line must increase and more attention must be paid to social housing.

He announced continuation of subsidies and loans for energy efficiency and faster legalization of illegally - built houses.