DECREASE OF CONSTRUCTION
The cold weather and the financial crisis have made their impact on the construction industry. According to the Bulgarian National Statistic Institute (NSI) in November 2008 the volume of construction has decreased by 14.9% in comparison to October 2008.
The most serious decrease is in the construction of buildings – 15.7% – while the construction of infrastructure has decreased by 13.2%. The decrease is typical for this industry in this part of the year according to the analysts, as this industry depends heavily on the weather conditions. The entrepreneurs, however, explain it with the recession which has hit them since the summer of 2008. The investors on their part wait to see the depth of the recession and its duration in time.
This is the reason why many prospective purchases of plots of land and many construction projects have been frozen. The entrepreneurs who rely on bank loans do not want to stop work but this is still better than sinking into yet more debt. According to some professionals the official statics lie and the real decrease of the volume of construction exceeds 15%.
The speed of work on many projects have decreased dramatically due to the lack of new purchases. Because of difficulties in getting bank loans many preliminary contracts for purchases of properties have been terminated.
The annual statistincs of the National Statistic Institute (NSI) still show a slight increase of the volume of construction in comparison to 2007. For November it has been of 1%. However, the expectations for 2009 are for general increase of the volume of 2 to 3% due to infrastructural projects and general decrease in the construction of homes and offices.
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Category: Bulgaria, Property | Tags: 2009 Bulgaria, construction, decrease, homes in Bulgaria, infrastructure, legal advise, National Statistics, property in Bulgaria, recession Comment »