Frode Gronvold

DEBATE led by Edgars Miļūns.During this discussion, a dialogue will be initiated by the moderator where the participants will try to look at the construction market from 2 different points of view. The construction market is overheated as construction company profit margins are elevated and rent levels feasible for businesses cannot support soaring constructions costs. Hence, markets will correct, and construction costs should and will decrease in the next 1-2 years. The construction market is balanced as construction costs fairly reflect underlying costs and strengthening of financial positions of the businesses. Hence, market will continue to develop in the same direction and construction costs will and should continue growing in the next 1-2 years.The goal of this discussion is to find a way of distinguishing opinions from facts, to uncover the actual factors behind the rise in construction costs in the Baltic states and model together possible future scenarios and their effect on the market.