Memo between Regional Development Ministry, developers and construction materials producers could lead to 10% fall in house prices

19:15

The implementation of a memorandum of understanding between the Regional Development and Building Ministry, construction organizations, construction materials producers, the central committee of trade unions of constructors and construction materials producers, signed on November 20, 2008, could lead to a 10% fall in the price per square meter of housing, according to a press release of Gerc investment and construction group of companies (Donetsk) referring to its president, Oleksandr Rotov.

"If everybody who signed the memorandum executes their obligations, the price of one square meter of housing will fall from 3% [to 10%]," he said.

According to Rotov, the price of one square meter of housing directly depends on the price of construction materials, and according to the memorandum, a fall in price for five kinds of main construction materials is expected: cement, road metal, sand, bulk materials and metal.

Besides, according to the press release, the board of directors in Gerc on November 26 decided to decrease prices for housing constructed and being constructed by the company by 7%.

Gerc was set up in 1990. It is one of the leading operators on the construction market in Donetsk region. It incorporates 14 companies.

The group is also a designer and contractor general of the construction of the Auchan trade center in Makiyivka (Donetsk region). According to the group, every year it commissions about 50,000-80,000 square meters of housing.