Even more housing prices rise in Kosovo: Builders Say It Is Costing It

“We have an increase in iron prices or armor for close to 100 percent, cement 80 percent, 60 percent wood - all the building materials have increased. When we add transportation, we can say that the construction cost has increased by over 20 percent”, Hoxha says. He says there are even further trends in building costs.

The reasons for the increase in the cost of construction are said to have been caused due to the high demand for construction, which is taking place following the release of measures as a result of pandemic worldwide but also in Kosovo.

Also, another reason, Hoxha says, is that some factories have worked with reduced numbers of workers during the pandemic time and that production has been low.

According to data from the Kosovo Statistics Agency (ASK), the construction cost in Kosovo has marked growth of 5.3 per cent in the first three months of this year, compared to the same period in the preceding year.

According to the AKS, price hikes have marked construction materials 7.9 per cent, energy 5.5 per cent, machines 2.7 per cent and other costs 6.5 per cent.

But according to the Kosovo Builders' Association, construction costs have marked increases of over 20 percent.

The owner of a construction company says that the cost of construction also dictates the price of residences, which he says will be much higher.

The cost of buying housing will be more expensive by 30 percent because of the price erection of building materials”, he says.

He says construction materials are more expensive in the last three months. In addition to the construction material, the prices have also increased for the labor force, which is deficit, especially for the masons who are directly involved in construction.

Kosovo is importative and almost all construction materials and any world price change affects Kosovo as well.

“These effects will be greater in the cost of selling and buying housing”, he says.

Home prices in Kosovo vary from private construction companies, which make the sale of residences. Prices per square metre start at 500 euros and higher, depending on where the residence is located.

According to population registration data, Family Economics and residences in Kosovo, made in 2011, the number of residences is 412, 884. The population is 1,739,825.

After 2011, the construction of residences in Kosovo has had a huge momentum, but there is no record of this period from the AK.

But, according to official data from the Kosovo Statistics Agency, over the years the number of members in a common home or flat has been dropping.

By 2014, the average size of family economies was 5,62, and by 2019 it dropped to 4.98 in one family.

He says the cost of building has placed the construction sector and the prices of building materials in a difficult situation, which are even more likely to increase.

But, overcoming this situation, Selimaj adds, looks to Kosovo citizens in the diaspora, who come to Kosovo and buy real estate.

I have hope that this year will be the largest diaspora influx. Unfortunately, we're dependent on remitations”, he says.

Remitists in Kosovo present the largest category under the account of secondary incomes. Last year the amount of these tools had reached close to 1 billion euros.

A large part of the remittances, according to Kosovo Central Bank data, go towards purchasing real estate.