23.4.2007

Construction Prices Up 15% In Bansko And Razlog

Material and labour costs, as well as stricter control raise construction companies' costs
Construction prices in Bulgaria have gone up by between 10 and 15% in the first months of the country's EU membership, data of entrepreneurs and real estate brokers show. The increase may be attributed mainly to the higher costs of materials, mechanisation and labour. Design costs and land appreciation additionally raise the end price of the construction sites.
Concrete prices have gone up by 10-15% since the beginning of 2007, data of National Construction Federation (NCF) member companies show. Cement prices rose by 18%, while reinforcing steel prices increased by 10-12%. Mechanisation prices also went 8-10% up.
The higher construction costs may also be put down to the stricter control measures applied after Bulgaria joined the EU. Most Bulgarian construction companies currently hire workers under employment contracts. The control over the use of certified materials meeting environmental and quality construction requirements is also stricter.

Apparel producers slam ban on overtime
Bulgarian clothes producers are experiencing a serious staff retention problem. That could be solved by revoking the ban on overtime, which will allow workers to earn well, member companies of the Bulgarian Association of Apparel and Textile Producers and Exporters agreed at a meeting in Rousse. Bulgarian apparel exports amounted to BGN 1.8 billion in 2006. The volume dropped by 6% but sales revenue increased by 7%.

Natura 2000 blocks real estate deals
The land market in some parts of Bansko and Razlog has been at a standstill since the beginning of 2007, brokers say. The demand for land in areas expected to be included in the Natura 2000 environmental network has decreased. Land in the Razlog area is offered at EUR 70 per sq. m but there are no buyers. Only small plots are sold near Bansko at this point. The average price stands at EUR 200 per sq. m.

Sell-off contract for Rousse heating signed
Bulgaria's Privatisation Agency (PA) and Holding Slovenske elektrarne signed the draft contract for the privatisation of 100% in the Rousse heating utility (Toplofikatsia). The contract is subject to approval by PA's supervisory board. The purchasing price is set at EUR 85.1 million. The buyer is also allowed to use compensatory instruments to pay for 481,337 of Toplofikatsia's shares.

23 April 2007 | 08:31 | FOCUS News Agency