29/01/08
Cost of construction materials to face major hike in 2008
The price of cement could increase by up to 12% due to the higher prices in energy and the labour force, says Markus Wirth, general manager of the cement producer Holcim Romania.
The price of cement grew by 15% last year, according to Wirth, and the cement market will continue to increase in the following years by 10 to 15%. This will be a direct result of the construction of houses and the ongoing infrastructure projects.
The Holcim official said the biggest markets for the sale of cement are Bucharest, followed by Cluj, Timisoara, Constanta, Arad, Iasi and Satu Mare. Holcim Romania is a subsidiary of the world's second-biggest cement maker Holcim Ltd.
OUR PERSPECTIVE
Although adding initially to the price of a property, in the long term increasing costs of building materials and the pressure this applies on house prices is a favourable development from an investor's point of view.