5,4 billion leva to be invested in construction in Bulgaria in 2007

“Investments in the building sector next year are expected to be 5,4 billion BGN”. This was the prognosis of the participants in an international, scientific conference entitled “building development and property” at the Economic University in Varna. The event was organized by the economic and property management department of the university.

Construction investments in the country are around 42% of the total volume of investments and the annual growth of the building sector in Bulgaria is 13,8%. The prognosis for 2007 was calculated on this basis.

According to Dr Ivan Jelev PhD, the future of investment activity is in industrial projects. The fact that there are many appropriate plots and old buildings ready to be reconstructed could gradually turn Varna into the Bulgarian Silicone Valley.

The participants in the conference predicted that in the future, the investors` interest will be directed towards the construction of commercial and entertainment centers.
Almost half of the building investments in Bulgaria are concentrated in Sofia, Varna, Burgas, Plovdiv, and lately Blagoevgrad, because of its proximity to Bansko.

According to Dr Pavlina Milusheva PhD, research among the building companies in Varna found that most of them do not have a department responsible for the material and technical supply. The problems for the building companies are the shortage of workers on one side and the lack of reliable materials and suppliers on the other.

Because of the massive western companies entering the Bulgarian market, many smaller developers are expected to go bankrupt. To survive they will have to specialize in a certain sphere in building, said Milusheva.

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