Serbia grapples with soaring construction costs and over €1 bn in utility debts

Construction material prices in Serbia have risen about 30% this year, while shortages and higher transport costs have pushed housing prices sharply upward. In Belgrade, new apartments now sell for an average of €3,000 per square metre, with some districts reaching €15,000. Builders report acute shortages of roofing, concrete blocks, polystyrene, steel frames and drywall, and the government has restricted imports of cement, steel and rebar until July, further tightening supply.

The International Monetary Fund has warned Belgrade to intensify collection of more than 143 billion dinars (over €1.2 bn) owed to the state-owned power utility EPS and gas company Srbijagas. The debt, described as a quasi‑fiscal risk, stems from unpaid electricity and gas bills by municipalities, state enterprises and bankrupt firms, with collection rates of only about 2 % to date. The IMF says the situation threatens the public budget and calls for reforms, including a new electricity pricing scheme and restructuring of the power sector.