Rising prices for metal structures are driving up real estate prices.

The increase in metal structure prices primarily led to an increase in apartment prices. However, the current situation was also somewhat impacted by developers' expenses on bank loans, the cost of preparing sites without any utilities, and many other factors.

As the site's experts report ht42.ruAt Hi-Tech, a manufacturing company specializing in metal structures in Kemerovo, price increases for metal structures began back in October 2020. And in early April of this year, another spike occurred. This is due to fluctuations in the cost of rolled metal products.

Many companies manufacturing metal structures are finding it difficult to adapt to the ongoing price changes in the rolled metal market. A price increase of just 5-7% would be acceptable without any complications. However, prices have more than doubled. For example, the cost of sheet metal has increased from 44,000-45,000 rubles per ton to 90,000 rubles.

Moreover, a shortage of rolled metal products is created, artificially or otherwise. Companies are engaged in long-term projects where it is simply impossible to predict price increases. By basing the initial cost of the products on one level, it's entirely possible to end up with a deficit at the end of the project.

The situation is becoming quite critical. Prices continue to rise. No concrete measures to stabilize them are being developed or implemented. So far, only ideas about introducing an excise tax or a duty have been floated.

Price fluctuations in one industry inevitably affect other sectors. Many companies are actively involved in municipal construction of kindergartens and schools. There have already been cases where winning tenders are unable to complete the construction. They have stopped the project because they simply lack the funds to construct the required building.

Furthermore, the cost of equipment has increased significantly. This is due to the fact that its main component is rolled metal. With the rise in rebar prices, which have doubled, the cost per square meter in residential construction has also increased.

Developers have noticed rising prices for reinforced concrete structures and are raising real estate prices. Prices for suburban real estate, townhouses, and existing homes are also rising.