“Cost-of- Construction Index” decreased for the second consecutive quarter
Cost-of- Construction index was decreased by 0.2% for the second consecutive quarter. According to the data received from the Institute of Statistics, housing construction costs were decreased in the second quarter of 2016, mainly due to transport costs. This is mainly related to the fact that in the second quarter of this year the fuel prices were significantly cheaper compared with the same period a year ago. That is why transportation expenses decreased by 3.5% in the second quarter. Another component of the index that recorded negative value for this quarter was the energy costs, which decreased by 0.4% on annual basis. Meanwhile, the main element in the index, the material costs, was increased for the second consecutive quarter by 1.5%. Meanwhile, the expenses for salaries recorded an annual increase by 1.6%, an increase similar to the previous three quarters. Low increase of cost-of- construction index limits the pressures for increase of prices of apartments from the supply and comes at a moment when the real estate sector has given some signs of emerging from lethargy.