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Bulgarian construction sector can grow by an annual 12 to 15 per cent over the next four or five years, as long as the Government succeeds in providing an adequate regulatory framework that would benefit everyone - from large investors to end-consumers, deputy regional development minister Savin Kovachev said, as quoted by Stroitelstvo Gradut weekly.

Sofia attracted about half of Bulgaria’s foreign direct investment FDI) and generated 30% of its gross domestic product (GDP), architect Atanass Tossev, who is a member of Bulgaria’s Chamber of Architects (BCA)’ managing board, said.

Bulgaria’s building sector accounted for seven per cent of the country’s GDP in 2006, with 4.000 operational companies on the market. In recent years, the market has seen a 12-15 % constant growth in the volumes of construction works. The trend will remain unchanged over the next 4-5 years, according to the forecasts of Bulgarian Construction Chamber.

Prices of construction materials, which have risen by 12.6 per cent in 2007, will be a crucial factor for the companies’ expediency. The main reasons behind the global property price hikes were the rising prices of building materials and the domestic rise in the costs of building services.

Investment in construction amounted to 42% of the total volume of investment in the country for 2007. Analysts predict increased activity in industrial, retail and entertainment developments in the upcoming couple of years. FDI in construction sector amounted to 508.3 million euro in 2007, registering 10 per cent increase on 2006’s figure of 466.6 million euro.

Investment in infrastructure in 2006 reached 4.699 billion euro, recording 4.5 per cent growth on previous year, the National Statistics Institute data showed. The main problems facing the construction sector in Bulgaria was strong competition, the labor force shortage, growing prices of building materials and services, difficult access to external sources of finance, insufficient specialization in particular construction fields, wasteful production processes, not enough training and development of its staff, as well as less than adequate marketing.

A new initiative is Sofia’s application to become host of the European volleyball championship in 2011. Currently, Sofia and Varna are in a heated competition to host the event. Therefore the capital’s governors are working hard on the development of a new 6 000-seat sports hall in Mladost neighborhood. The documents for its construction would be ready by the end of the month. The complex is estimated at 60-100 million €.

Sofia Municipality and SAYS are mulling the submission of Sofia’s application for hosting the 2018 Winter Olympics, as well. It would be possible after the construction of a National sports hall, seating 10 000-12 000 people, near the Fourth Kilometer along Tzarigradsko Chose, between Iztok and Moussagenitsa neighborhoods.  And the former Yunak stadium in Borissova Gradina (Boris’ garden) will be revamped into a modern skating rink, with view to being used in the event of Sofia hosting the Winter Olympics 2018.