Page 133 - SE Outlook Regions 2023

The construction of an oil pipeline through North Macedonia to the
Albanian port of Durres will be considered as part of the Open Balkan
initiative.

3.10.5 Construction

Serbia has infrastructure construction projects underway in a variety of
sectors. They include the new unit of the Kostolac TPP, due to be
completed in 2023, the Belgrade metro and other rail projects, road
infrastructure, ports, and new oil and gas pipelines.

In the residential construction sector, a report from international real
estate company CBRE says that 2022 saw a “substantial number” of
developments coming onto the market with over 1,100 new apartments.
There are also numerous projects in the pipeline; in Belgrade these
include the Landmark Residence in Vracar and Central Plaza, both due
to be completed in 2024, as well as the ongoing Belgrade Waterfront
development.

However, CBRE noted a slowdown in the residential market in Q3,
when the number of transactions recorded in Belgrade fell 18% q/q and
6% y/y. Price growth for apartments continued in Q3, mainly on the
secondary market, the report said.

Amid the broader economic slowdown the government outlined plans
for an aid package for the construction industry, incoming Minister of
Construction, Transport and Infrastructure Goran Vesić said on October
31.

Vesic said supporting the sector will be a priority for the new
government because it has declined for the last two quarters, and
companies are "facing problems”.

Among the priorities outlined by Vesić are adopting changes to the Law
on Construction in order to speed up obtaining of permits, as well as
improving the work of the Cadastre and the adoption of the Law on
Infrastructure Maintenance.

The cement industry was already hit by the outbreak of war in Ukraine,
as it relied more than 50% on high-calorie coal from Russia and
Ukraine, which is now almost impossible to obtain, according to the
eKapija portal.

This came after 2021 was very successful for the cement industry of
Serbia. 2.6mn tonnes of cement were produced and sold, which is an
increase of more than 10% compared to the previous year.

133 SE Outlook 2023 www.intellinews.com