The European Investment Bank (EIB) is considering providing EUR 400 million in financing for a pilot project to build social housing in Ukraine, the press service of the Institute for Economic Research and Policy Consulting (IER) reports.
“Negotiations are currently underway to provide EUR 400 million in funding, which will consist of a grant and a loan for the construction of public housing. This should be housing in normally built-up parts of the city, with access to technical and social infrastructure,” said Grzegorz Gajda, Senior Sector Economist at the EIB, as quoted in the press release.
He noted that the housing should be built using the best European practices, in accordance with energy-efficient standards and the principle of build-back-better.
The project envisages the construction of about 6-6.5 thousand apartments. The EIB will select areas for social housing construction based on the needs of the regions and their interest in cooperation.
Along with this, the conditions for renting housing are being discussed. In particular, it is proposed to allocate social housing to employed Ukrainians with a salary not lower than the average, as well as to give local authorities the opportunity to transfer 20-30% of apartments for rent to people selected according to their own criteria, taking into account the professionals needed in the region.
According to the expert, the project also envisages finding opportunities for the social housing sector to independently finance its operations and maintenance to avoid the need for state funding for housing maintenance.
As the IER points out, at the beginning of 2022, there were only 3 thousand social apartments in Ukraine, while the number of internally displaced persons (IDPs) at the end of the year amounted to more than 5 million people. According to the International Organization for Migration, there are about 3.6 million internally displaced persons in Ukraine as of October 2024.
American electric vehicle manufacturer Tesla plans to complete the construction of a plant in Shanghai to produce Megapack energy storage devices by the end of this year, Xinhua news agency reported, citing a statement from the company’s local office.
Construction of the plant began in late May. The plant covers an area of about 200 thousand square meters, and the total investment in this project is estimated at about 1.45 billion yuan ($202 million).
The facility will be Tesla’s first energy storage project outside the United States and the company’s second plant in Shanghai after the electric vehicle gigafactory, with total investments exceeding 50 billion yuan.
Mass production of Megapack at the new facility is expected to begin in the first quarter of 2025. At the initial stage, the production volume will be 10 thousand drives per year, which is equivalent to approximately 40 GWh of electricity.
Megapack is a 3.9 MWh battery for energy storage and power supply support, its use contributes to the stability of power grids and prevents interruptions in their operation, according to Tesla’s website. The American company already has a Megapack production plant in California with a capacity of 10 thousand units per year.
In January-September 2024, the total area of residential buildings for which construction permits were issued (new construction) decreased by 6.6% compared to the same period in 2023, to 2 million 962.3 thousand square meters, according to the State Statistics Service (Ukrstat).
According to the statistics agency, in January-September 2024, the total area of new construction of apartment buildings decreased by 8.3% year-on-year to 2.8 million square meters. The number of apartments declared at the start of construction in apartment buildings decreased by 12.2% to 30.9 thousand.
According to the State Statistics Service, the largest number of new housing starts in the first nine months of the year was reported in Lviv region: the total area of new housing construction amounted to 499 thousand square meters (7 thousand apartments).
Significant volumes of new housing were also declared in Kyiv region – 494.8 thousand square meters (11.9 thousand apartments), as well as in Ivano-Frankivsk region – 317.8 thousand square meters (5.3 thousand apartments), Zakarpattia region – 292 thousand square meters (5.3 thousand apartments), Transcarpathian region – 292 thousand square meters (5.3 thousand apartments), and in the city of Kyiv – 292 thousand square meters (5.3 thousand apartments). sq. m. (5.3 thousand apartments). apartments), Transcarpathian – 292.3 thousand sq. m. (3.8 thousand apartments), Vinnytsia – 236.3 thousand sq. m. (4.1 thousand apartments), Khmelnytsky – 141.6 thousand sq. m. (2.3 thousand apartments) and Volyn – 140.7 thousand sq. m. (3 thousand apartments).
In Kyiv in January-September 2024, the total area of new housing construction amounted to 330.3 thousand square meters (2.9 thousand apartments).
The State Statistics Service reminds that the figures exclude the territories temporarily occupied by the Russian Federation and part of the territories where hostilities are ongoing (or have been ongoing).
As reported, the total area of new housing construction in 2023 decreased by 37% to 4.2 million square meters, while in 2022 it amounted to 6.67 million square meters, and in 2021 – 12.7 million square meters.
In 2027, Belgrade will host the World Expo 2027, a large-scale international event that will take place from May 15 to August 15. For this event, the municipality of Surcin has already begun building infrastructure, including a national stadium, an exhibition center, and new transportation interchanges. One of the key projects in preparation for the exhibition will be the opening of the first metro line, which will significantly change the transport map of the Serbian capital.
The importance of the metro for the city and the real estate market
The first metro line, which has already started construction, will connect key areas of Belgrade, including the exhibition center in Surcin. This project will not only improve transportation, but will also have a significant impact on the cost of housing and land along the route.
Traditionally, real estate prices near metro stations have been on the rise, making this factor one of the main ones for investors. In the case of Belgrade, the impact of the new infrastructure may be even more noticeable given the growing interest in the city ahead of EXPO-2027.
Surcin – the center of events
Surčin, where the bulk of the EXPO-2027 facilities will be concentrated, is becoming the center of attention for both the authorities and developers. The construction of a national stadium, a new railway station and an exhibition complex is already underway. According to official data, the area of the future exhibition center will be 113 hectares, and the total construction area, including the accompanying infrastructure, will reach 167 hectares.
Real estate prices in Surchyn have already started to rise. For example, the cost of apartments has increased several times over the past year. Land plots have also risen in price, especially those located near transportation hubs and future metro stations.
Impact of EXPO-2027 on the development of Belgrade
Preparations for the World Expo involve large-scale investments in the city’s infrastructure. In addition to Surcin, changes will affect other districts of the capital. Work is already underway on the construction of a new bus station, and the modernization of the Prokop railway station is nearing completion.
The subway will also be an important step in the development of Belgrade. The first line will connect key areas of the city, which will reduce the load on the road network and simplify the movement of residents and visitors to the capital.
Forecasts and prospects
Experts agree that EXPO-2027 will have a long-term impact on the real estate market in Belgrade. In addition to the price increase in Surcin, real estate is expected to rise in price along the routes of the future metro, as well as in the central and prestigious areas of the city.
The Serbian government states that EXPO-2027 will be a stimulus for economic growth, attracting foreign investment and improving infrastructure. These changes will make Belgrade even more attractive for tourists, residents and businessmen.
Thus, EXPO-2027 and related projects, including the metro, are opening a new chapter in Belgrade’s development, strengthening its position as one of the key centers of Southeast Europe.
Representatives of the Government of Serbia, the City of Belgrade and PowerChina today signed an agreement for the construction of the first phase of the Belgrade Metro Line 1 worth EUR 720 million.
The agreement for Lot 2 of the first phase of Line 1 of the Belgrade Metro covers the design and execution of works, including preparatory activities and the procurement of TBM machines for tunneling.
The preparatory and construction work is expected to last 45 months plus two years.
The document was signed in the Serbian government building by Minister of Public Investment Darko Glisic, Acting Minister of Construction, Transport and Infrastructure; Acting Deputy Head of the Belgrade City Administration – Secretary of the Public Transport Secretariat Radovan Kremić; Director of the Belgrade Metro and Train Company Andrej Mladenović, together with a representative of the Chinese company Power China Han Jiping.
As noted, the new agreement makes it possible to allocate a separate Lot 2, which will be financed from the Serbian budget and will enter into force immediately, which will facilitate the faster implementation of the construction of the first phase of Line 1 of the Belgrade Metro.
Prices for construction and installation works in Ukraine in October 2024 increased by 5.1% compared to October 2023, the State Statistics Service (Ukrstat) reported.
According to the statistics agency, in October 2024 compared to October 2023, prices increased in all segments of construction: in residential construction, the growth was 7%, in non-residential construction – 5%, in engineering – 4.5%. At the same time, compared to September of this year, prices increased only in residential construction – by 0.1%, while in non-residential construction they decreased by 0.1% and in engineering construction – by 0.4%.
In October-2024 to December-2023, prices for construction and installation works increased by 5.8%, while in the first ten months of 2024, prices for construction works increased by 8.2% compared to the same period a year earlier.
As reported, in 2023, prices for construction and installation works increased by 15.8% compared to 2022.
The State Statistics Service indicated that the figures are given without taking into account the temporarily occupied territories and part of the territories where hostilities are (were) taking place.
