Regulation on financing construction of cheap apartments adopted - construction of 10,000 residential units in four cities starts soon

- The Government of Serbia adopted the Regulation yesterday (January 21, 2010) on financing of construction of cheap apartments, according to which maximum price of square meter will range between 695 and 1,595 EUR, depending on the city and the location - it is stated on the website of the Government of Serbia.

Oliver Dulić, the Minister of Environment and Spatial Planning, said at the press conference after the Government's meeting that construction of 10,000 cheap apartments in Belgrade, Novi Sad, Niš and Kragujevac should start in few months, while construction in other cities in Serbia would depend on the citizens' interest.

He said that the maximum prices of square meters by the zones were determined by the Regulation on the measures of support to building industry through subsidized interest rates on the loans for financing residential construction in 2010.

The Minister specified that square meter in Belgrade's second zone would cost 1,595 EUR, the price of square meter in the third zone would be 1,290 EUR, while the price in the fourth zone would amount to 945 EUR. He also pointed out that the price of square meter in all other zones in the capital city would be 895 EUR, while cheap apartments would not be built in Belgrade's first zone and extra zone.

According to his words, the price of square meter in Novi Sad's first zone will be 1,100 EUR, while the price in the second zone is 895 EUR, while square meter of residential space in the first zone in Niš and Kragujevac will cost 900 EUR, that is, 695 EUR in the second zone.

Dulić said that the price of square meter of the apartments in the facilities on the territory of other cities and municipalities in Serbia would amount to 695 EUR, and he expressed expectation that the first tenants would be able to move in cheap apartments in 2011.

He said that 2 billion RSD were provided for construction of cheap apartments and explained that the state would subsidize part of the interest rate of 7% on annual basis , while the average interest rate would range between 9 and 10%.