Despite existing concerns regarding trade conflicts, including US policies, the direct impact on the Bulgarian construction sector remains limited so far. We cannot yet see a direct effect of tariff decisions, but we expect a possible reflection in the prime cost and prices of construction materials. The construction sector in Bulgaria works primarily with European suppliers rather than raw materials from the US, commented Dimitar Savov, CEO of BLD and panellist in „Talk 25: Home and Office“, on the programme "Business Start" with host Roselina Petkova.
Regarding prices, Savov commented that after the rapid growth in the years around the pandemic and the start of the war in Ukraine, prices are currently stabilising.
„Since then, there has been inflation within the range of 3–5%. In fact, in construction, the greater inflation comes from labour costs. In the last 3 years, it has increased by 100%.“
The shortage of qualified workers remains a major problem, although the return of Bulgarian crews from abroad is already being observed. According to the interviewee, this is due to wages in the sector approaching Western European levels, combined with the lower cost of living in our country.
Discussing investments and trends, the CEO pointed out that sustainable construction and compliance with ESG regulations are already mandatory for the office segment.
„You cannot let a building, and even less so sell it to an international institutional investor, if it does not meet and cover all ESG criteria, which include, in addition to energy efficiency — social criteria and good governance criteria.“
In residential construction, these requirements are only just being introduced, with banks currently being the main driver, while clients remain more focused on energy efficiency and comfort.
Regarding green technologies, the interviewee noted that there has been some sobering up of policies, but many of the modern solutions in construction are already proven and effective.
In the context of the upcoming „Talk 25: Home and Office“ forum, Savov emphasised the need for a more informed debate on the property market.
„There is a lot of speculation in Bulgaria; everyone understands football and property. So, this is a very interesting topic and everyone is a specialist. Sensations are highly sought after, and there is talk of bubbles. I believe we have no interest in such sensations. Currently, Bulgaria is an oasis in Europe. In quite a few countries, the property market in Europe has collapsed.“
Unlike countries such as Germany and France, where property prices are recording a decline, in our country, they continue to rise. According to Savov, this is a result of both the increased standard of living and accessible and cheap financing.
„Let us take advantage of the opportunities provided to us“, he summarised.
You can watch the full interview here: Bulgaria is an oasis on the property market in Europe - Bloomberg