Experts say we will see price stabilization rather than decline.
Did the residential real estate market emerge from the pandemic as the winner? Is real estate price growth sustainable in the long run? Is further growth in real estate prices expected? Is the increase in the price of construction equipment the main challenge of that market?
These issues were key at one of the panels at the International Conference on the Real Estate Market of Southeast Europe “Balkans Property Forum 2021”, where a group of real estate market experts presented their experiences and opinions on future price movements.
The media had the opportunity to attend the conference and below we present the opinion and comments of experts.
Stabilization before falling
On the other hand, one of the directors of Ruftop Capital, Ivan Čakarević, says that it cannot be said that the residential real estate market is the “winner of the pandemic”.
– It can be considered a success that many people have decided to invest the money they own in real estate, considering it the best place to protect it due to the lack of other investment opportunities, such as the stock market – he says.
He emphasizes that the two main sources of real estate price growth are people and investors.
– The growth of prices will depend on the nature of these two groups. Many investors expect certain returns and only at the moment when we will see if these expected returns are realized and we will be able to say precisely how prices will continue to move. I personally do not see any drastic processes that could affect the fall in prices in the near future – says Čakarević.
– I think we will see a stabilization of prices, rather than a fall – he concludes.
Slavica Milić from Porto Montenegro is sure that in the next period they will record an increase in prices.
– We have definitely noticed an expansion in 2020 and especially in 2021. In the last two years, we have seen a drastic increase in demand in Montenegro, and we will definitely see an increase in real estate prices in the next 6 months to a year. However, as Ivana pointed out, the key question is whether this growth is sustainable – she says.
Construction material prices are rising with great challenge
According to experts, the rise in the price of construction materials is certainly a challenge for the residential real estate market.
– In my opinion, that is the biggest challenge we are facing at the moment – says Jovana Martinović Mrics and adds that the contractors can still count on the return on capital, but that now it is necessary to have an extraordinary project in order to negotiate acceptable prices.
According to the director of Maksifaj, Sergej Stoliarčuk, the key calculation for solving this challenge is between the construction costs and the income plan.
– Speed should not be an imperative, it should not be built quickly, nor should slow sales be done now – says Stoliarchuk and adds that companies that can offer an efficient solution of construction costs and revenue plan will “come to light”, Srbija Danas reports.
