Building sector to increase steadily over the next 4-5 years

Bulgarian building sector would grow by an annual 12 to 15 per cent over the next four or five years, as long as the Government succeeds in providing an sufficient regulatory framework that would benefit everyone - from large investors to end-consumers, representative regional development minister Savin Kovachev told, as quoted by Stroitelstvo Gradut weekly.
Sofia attracted about half of Bulgaria’s foreign direct investment and generated 30% of its gross domestic product , architect Atanass Tossev, who is a member of Bulgaria’s Chamber of Architects’ managing board, told. The capital should not try to centralize all production and human resources, though, he added. Regional governor Todor Modev declared the authorities’ firm decesion to work toward decentralisation and relocation of energy-and labour consuming industries beyond Sofia’s boundaries.
Bulgaria’s construction sector accounted for 7% of the country’s GDP in 2006, with 4 000 operational companies on the market. In last yeras, the market has seen a 12-15 per cent constant rise in the volumes of construction works. The trend will stay unchanged over the next 4-5 years, according to the forecasts of Bulgarian Construction Chamber, quoted by Stroitelstvo Gradut.
Prices of building materials, which have growth by 12.6 per cent in 2007, will be a decisive factor for the companies’ expediency. The main reasons behind the global real estate price hikes, were the rising prices of constructing materials and the domestic increase in the costs of building services, Stroitelstvo Gradut told.
Investment in building amounted to 42 per cent of the total volume of investment in the country for 2007. Analysts predict grew activity in industrial, retail and entertainment developments in the upcoming couple of years.

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