The war in Ukraine will also affect the construction industry, which means a jump in real estate prices. The increase in the price of materials used in the construction of buildings is double-digit.
Our country imports 70% of the reinforcing iron from Ukraine and Russia, including that used in construction. However, war, sanctions and restrictions call supplies into question
“The second problem is that the full nomenclature of these materials is missing and they have to be replaced with each other in order for the construction process to go on time,” Ilian Terziev, chairman of the Bulgarian Chamber of Builders, told BNT.
This apartment is only 32 square meters, but has been converted
Eng. Georgi Shopov, chairman of the National Association of Construction Entrepreneurs, said that the reinforcement from 1.65 to 2.40, which is a huge increase.
This will also affect real estate prices, but by how much?
“I would refrain from a specific comment on how much we would expect prices to rise and should we?” Said Anton Andonov, executive director of a real estate agency.
For builders, however, there is growth. According to the National Association of Construction Entrepreneurs for 1 year the increase in construction is 27%. Reinforcement is over 60%, wood – 150%, thermal insulation between 40 and 60%.
There is another problem
“The delay in deliveries, because I have to tell you that at the moment, especially in the metal market, things are very tragic. There are companies that refuse to simply take orders,” said Eng. Ilian Terziev.
According to him, quotas for imports from third countries should be reviewed. For Eng. Shopov, however, the decision is already on the way: “This is being robbed of world logistics, global logistics and an economy that does not tolerate vacuum and niches. Ships from all over the world with reinforcement have left for Europe.”
But regardless of the stage of construction, the rapid rate of increase in the value of materials will reflect on the final cost of newly built buildings. And prices will certainly be affected by the rapid growth of building materials.
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