Sat, Feb 11 2012

Economic crisis drives one in four Bulgarian builders out of business

Mon, Oct 05 2009 08:38 CET

byDnevnik.bg

3073 Views 1 Comment
Economic crisis drives one in four Bulgarian builders out of business

More than a quarter of construction companies in Bulgaria have closed their businesses in the nine months up to September 2009, according to construction chamber data.

As many as 1550 out of 5820 firms have not confirmed registration with the construction chamber as at September 1, which is a mandatory requirement to continue operations, executive director Ivan Boikov said.

He ruled out the possibility of illegal operations because all investors require registration documents.

Builders are, however, hired on home repairs without any licence presentation.

Next year, 2010, will be the year of survival and cut-throat competition for the construction industry, Regional Development Minister Rosen Plevneliev said.

Orders and volumes are dwindling faster than anticipated. The sector contracted by 14.5 per cent year-on-year in July, extending a previous slide of 8.6 per cent in June, according to official statistics.

Boikov said that the slump was even bigger, at 30 per cent.

All six-month figures including number of building permits, the combined floor space and foreign investments, were decreasing, Plevneliev said.

Source: Dnevnik,bg
 

  • Print
  • Send via email
  • Translate to
  • Share:

Comments

Anonymous Rab Fri, Oct 09 2009 00:25 CET
Report Comment

If the construction industry is on the decline then the firms must look to the building of roads especially in and around Sunny Beach


To post comments, please, Login or Register.


Please read the The Sofia Echo forum comments policy.

Planex commences construction of business park Sofia 1

"We are hoping that with the beginning of this big project, this will send a positive signal to other investors that the business climate in Bulgaria is improving, especially for investors who are in it for the long term, as is the case with BSR Sofia."

Bulgaria's business climate index drops in September 2009

Bulgaria's general business environment index dropped by 0.4 points in September 2009 against August, reaching its lowest rate (8.6 per cent) ever since the beginning of the downturn in October 2008, the National Statistical Institute said.

Bulgaria's construction sector shrinks by 14.5 per cent

The Bulgarian construction industry contracted by 14.5 per cent in July 2009 compared to corresponding figures from July 2008, or what has transpired as its sharpest decline in recent years.

Bulgaria tops European charts for new shopping mall construction

The international consultant company Cushman & Wakefield revealed that Bulgaria is a European leader in terms of new construction completed for the first six months of 2009.

More in this category

Raiffeisen Real Estate: Prices of Sofia homes returned to 2007 levels

Average market prices of homes in Sofia fell by one per cent in the fourth quarter of 2011 compared to the same period of 2010, according to the Raiffeisen Real Estate Index, as quoted by Klasa daily.

Most property sales in Bulgaria were people wanting to escape their investment – report

Proportionately, the number of transactions in leva increased as people reacted to speculation that the euro would disappear.

Bulgarian property market: Home finance easier, media report says

Nearly all banks are ready to finance between 80 per cent and 90 per cent of the price of a home, provided it is a good building in a large city, Bulgarian daily says.

Bulgarian property prices ‘have hit bottom’ brokers say – report

Property prices in Bulgaria were five to 10 per cent lower in 2011 than in 2010, while initial estimates for this year are that they will remain largely unchanged, with transactions remaining at ‘crisis levels’.

Budapest, Skopje at top among ‘Europe’s top 20 places to invest in property’

Bulgaria’s capital city Sofia ranks 17th, report says, quoting Global Property Guide.

© 2000-2012, Sofia Echo Media Ltd.

Web Design by RIZN

Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted. Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com. Sofia Echo Media cannot be held responsible for the statements contained in visitor comments. The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes, and should not be used as a basis for decisions about buying or selling stock options.