Costs hamper construction

The cost of new housing construction has recorded an increase of 65-70% from mid-2021 to date due to the successive crises - first the disruption in the supply chain caused by the pandemic and then the war in Ukraine. 

At the same time, as real estate market officials report, there are also phenomena of speculation by some material trading companies, while the increase in labor costs has also been steep.

"The lack of staff is a daily headache, which puts back the delivery times of new homes and therefore limits the supply on the market," construction industry officials note. 

The high demand for both construction and infrastructure projects, as well as the fact that many - especially economic migrants - have left the sector due to the crisis, makes it particularly difficult to replace workers and pushes wages higher.

Another reason is that in recent...