How is construction market in Bulgaria evolving amidst rising costs, economic risks, and changing regulatory requirements?
In the past three years, our industry has faced significant challenges, including volatile prices for raw materials, rising costs and shortages of construction labor plus the stress one unstable economy imposes on market buyers. We operate in an environment that is difficult to predict and plan, which creates challenges in project realization, but also naturally filters out stable investors in the market. Our company has a long-term development strategy, secured construction plots, and financing for several years ahead, so our team works in line with the market dynamics, while also recognizing that the market does not move in a straight line but rather in a sinusoidal pattern. Market fluctuations are just a part of the sustainable progress of each project.
We sell properties even before construction starts and our projects are distinguished by excellent locations and uncompromising quality. Additionally, we work on enhancing the environment around our buildings and fostering a community among their residents. All of this significantly increases the value of completed properties in BLD buildings and clients who purchased their homes from us during construction see a much higher actual value by the time they receive their property at Act 16.
What are the current projects that BLD is working on?
Currently, our company has five projects in various stages of realization and sale: the third building in the Mona complex in Manastirski Livadi – East, the iconic luxury building Secret Gardens in Lozenets, Aviva in the central part of the city, Stellar on Cherni Vrah Boulevard, and the second phase of our Slow Life District housing estate.
We plan to announce two more projects for sale by the end of the year, one of which will be the largest for our company and will definitely offer a new vision for urban housing.
Our rule is to have at least one new project each year, and this year is certainly one of the most dynamic and productive for BLD.
All our announced in 2023 include finished apartments in building MONA 3 where we aim to gauge our clients' attitudes toward ready-to-move-in homes, and BLD Living—a concept offering functional, fully furnished rental apartments in a community setting. This pilot project features 67 apartments in MONA2 with a reception area, shared spaces for relaxation, entertainment, and sports for people who have high demands for their living environment no matter if they want to spend time in Sofia for work, training, or seek a comfortable place to stay for under a year.
How is the rising demand for energy-efficient and sustainable buildings affecting the construction industry? Will this trend continue with increasing energy costs and the decarbonization of the economy?
New European regulations related to the Green Deal target carbon emissions reduction by up to 55% by the end of 2030. This will inevitably lead to increased costs for new homes construction, as it must meet strict requirements regarding the materials and systems used. This is not a trend but a new norm that all investors in Europe and worldwide will need to comply with. The Green Deal will further widen the gap between new and old residential buildings—not only in terms of comfort living, but also with regards to accountability. Changes are expected and banks will limit their lending conditions for homes in buildings that do not meet energy efficiency and decarbonization requirements.
As facility management experts we become involved in our projects starting from the conceptual phase. This positively impacts the building management processes after completion, optimizing maintenance costs and buildings' lifespan and their facilities. Facility management includes all possible activities that can extend the building's lifespan, enhance the comfort of apartment owners, and foster a mini-community in the building's shared space.
Are modern buildings becoming more digital? What are the most interesting new technologies being used in Bulgaria?
Modern buildings are becoming digital intensive and we are following global practices by implementing more and more innovations. Our buildings are equipped with access control systems that allow not only remote communication between owners and visitors, but also access management from thousands of kilometers away via mobile apps. Our buildings have thermal energy and water meters equipped with remote reading loggers. Facades light sensors are integrated to reduce energy consumption and make buildings energy efficient. We also build green areas with digitally controlled irrigation systems leading to optimal water use and zero waste. All our buildings feature top-class, world-level elevator systems for energy efficiency. To reduce heating and cooling costs we offer at least two options for each owner, including air conditioning, gas heating, central heating, or heat pump.
Some of our buildings also have external electric roller shutters and insect screens that can be controlled via mobile apps. We have implemented a communication system for our clients, allowing them to submit requests, receive invoices, and access all building-related documents at any time. Each new building is one level up the previous one regarding digital management capabilities and new technologies.