Sofia, 2 November 2006, Pari Newspaper


It is expected there will be a 12 % increase of the construction market in Bulgaria, which will be due mainly to the higher prime cost. This is what Ivan Mekoushin - the Managing Director of Winslow Developments predicted during the Construction and Investment Forum (RINFOR). To his opinion, considering the fact that last year the value of the completed construction sites was BGN 7.48 billion, this year the volume is expected to exceed BGN 8 billion. Among the reasons for the increasing prime cost are the high prices of construction plots, the increase in the prices of construction materials and the growing salaries in the construction sector. Meanwhile, the prices of flats and houses are expected to increase by about 10 % and this will be the average rate of price increase in medium-term perspective. This will change the trend of the past few years when the rate of increase of the prices in the construction sector was slower than that of the market prices of dwellings. That is, the profit margins are already showing a downward trend, explained the Director of Winslow Developments. That is why the investments in residential properties are steadily turning into a way to preserve the value of money instead of seeking speculative profit. Winslow Developments is an investing company and so far its activity has involved mainly large residential projects in Bansko. Recently, it has announced it intention to invest € 65 million in two residential projects in Sofia, together with the RREEF Division of Deutsche Bank.