Housing prices went up sharply in the spring of last year, but no one took any action because it was thought to be a temporary phenomenon that would subside. However, it turned out this wasn't the case, writes Novi List. It was a stunning jump in prices of raw materials around the world due to increased demand, resulting from the economic recovery and strong growth of public investments in infrastructure construction in Europe, the United States, and the rest of the world. At the same time, there were delays in production and logistics around the world, with the price of energy and labor skyrocketing. This means that builders who entered contracts for construction at old prices won't be able to complete their job, and there will be delays in works and bankruptcies of companies. ""Contractors no longer cover construction costs, they operate with losses,"" warned Mirjana Čagalj, vice-president of the Chamber of Economy, reminding that due to unprecedented price increases, it is necessary to develop the possibilities of amendments to the construction contracts, in accordance with the Government's conclusion on ""proceeding to alleviate the consequences of price distortions in building materials and products."" How much construction prices can jump, contractors did not speak about, as it all depends on the development of events. However, housing prices are alarmingly growing. According to Eurostat, in the second quarter of this year, houses in Croatia have risen in price by almost 7% compared to the same quarter last year, and in some EU member states even 15%. According to information from the past few weeks, prices of old apartments generally stagnate, but in Zagreb, the prices of new ones have risen by about 40% and range around €3,000 per square meter. Buyers complain that some contractors on attractive locations in the northern part of Zagreb are asking for unbelievable eight to ten thousand euros per square meter for new apartments, writes Novi List. Source: novilist.hr, poslovni.hr

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