Construction of a new house in 2011 comes by about 20% cheaper than in 2008. This decreases in prices is mainly due to the reduction of wages of workers, while the prices of materials have marked a different movement – some are down, others – mainly appreciated due to higher fuel prices and energy costs.
According to people in the construction industry stagnation has led to a drastic decline in prices of rough construction services. A month ago one of the bids was for EUR80 to EUR90 per square metre including materials and labour, while only work cost BGN35 to BGN50 per square metre. If one needs to include finishing the overall price, with materials, goes up to EUR230-250 per square metre. There are lower rates offered by even the big companies – about EUR50 per square metre, but only if the object is over 500 square metres in all and there are now obstacles to the movement of people and materials. Otherwise, at the beginning of the construction season in February-March 2011 the most common proposal for the rough work was about EUR100-120 per square metre.
The prices of basic materials for rough construction this year have not changed significantly, builders say. The most commonly used concrete B20 is between BGN70 and BGN80 per cubic metre without VAT and transport. Only because of the cost of fuels, the transportation of materials becomes a serious item, and so nearby destinations turn out significantly cheaper. Thus, if the site is 12 km away from the concrete plant, transport may cost between BGN85 and BGN90, and if the distance is higher it can jump to BGN200. Rents on the concrete pumps are also unchanged – BGN150-BGN200 per shift. Other materials – sand, bought at wholesale prices, remains BGN10-12 per tonne, and felt costs BGN15 a tonne. Bricks, which are offered in distinct varieties at the moment, insulation and cement bags have the same prices as last year.
In 2011 an increase in the number of small investors has been observable, experts say. These are people who build a house or a villa on own land, work with private funds and rarely resort to borrowing. However, this does not increase the volume of construction, that has been continuing to decline throughout 2011. Therefore, the pressure on the prices of construction works will continue.
