Experts predict a rise in prices for building materials
Rising prices for building materials will continue in 2008, said Pavel Goryachkin, president of the Union of Engineers-Estimators, director of the department of pricing and expert-analytical work of the Association of Builders of Russia (ASR).
A prerequisite for a rise in prices may be a trend that began in 2007, when the cost of basic materials increased by 30%. According to Pavel Goryachkin, in 2008 prices for different types of building materials are also expected to rise. In particular, the rise in prices for cement can reach from 70% to 140%, despite all attempts to stabilize its price in the market. The rise in the price of cement in turn will entail an increase in the prices of ready-mixed concrete and reinforced concrete structures.
This will be facilitated by the fact that this year it is not expected to commission large-scale cement production facilities. "Already, the specific growth of cement in the cost of housing has reached 7%, not 2%, as it was before," Goryachkin stressed.
Not only cement is expensive.In 2007, the cost of sand rose by 12.4%, and crushed stone for the same period - by 9.4%. This year, their prices are expected to rise at the level of 18-20%. It is also expected to increase the cost of metal products, and its share may reach 9% of the cost of housing construction. Pavel Goryachkin stressed that the rise in prices for building materials "is becoming a dangerous trend," since in social construction the price of housing is actually equal to the cost and depends on the price of resources.