BULGARIA

80€ BILLION

GDP 2022

6427197

POPULATION 2024

5€ BILLION

Total investment in construction in 2022

Overall construction activity

Despite the anticipated economic slowdown in Bulgaria due to the negative impact of COVID-19 and the war in Ukraine, building and engineering construction output indicates growth in 2022.

The gross domestic product (GDP) of the country amounts to € 84 559 million, increasing by 3,4% compared to 2021. In 2022, the gross value added (GVA) at current prices for the entire economy amounts to € 74 451 million, increasing by 3,4% compared to 2021. For 2022, the relative share of GVA in the construction industry is 3,1% of the GDP and amounts to € 2 636 million, whereas the registered economic decrease is 4,5% on an annual basis.

According to the preliminary data of the National Statistics Institute the construction industry output for 2022 registers an increase of 6,5% compared to 2021.

Based on the statistical forecast data the revenues of the construction enterprises for 2022 will register a growth (the actual data will be published on 30 November 2023). The expected share of the residential construction in total operating revenue of the construction industry is 26,7%, of the non-residential construction – 22,3% and of the civil engineering – 51,0% respectively.

The gross fixed capital in construction assets increased by € 609 million compared to the previous year.

Based on preliminary data from the Bulgarian National Bank (BNB), foreign direct investments in Bulgaria’s construction sector are projected to decrease by € 19,9 million in 2022., which represents a significant decline of 69,3% on an annual basis compared to 2021 (the data are subject to revision).

The employment in the construction industry. Employment in the construction sector represents 5,7% of total employment in the economy and has increased by 1,0% compared to 2021. The Unemployment in the sector for 2022 is 9,2% of the total unemployment. The decrease of the unemployment is 18,1% for the whole country and 10,4% for the construction industry compared to 2021.

As of March 10, 2023, there were 6 563 construction companies registered in the Central Professional Register of Builders maintained by the Bulgarian Construction Chamber (BCC). This data is based on 2021. Out of these companies there are 6 506 Bulgarian legal entities and 57 foreign companies. 422 companies were erased from the Register of Builders due to non-compliance with the procedures outlined in Art. 20, paragraph 2 of the Bulgarian Construction Chamber Act. Based on criteria “personnel” 87,50% of the inscribed construction companies are small, 11,64% are medium-sized and 0,86% are large companies.

Housebuilding

The building construction, which contributes to 56,5% of the total production in the sector, registered an increase of 7,1%.

The number of the residential buildings of issued construction permits for 2022 has increased by 15,9%, whereas their total floor area – by 20,6% respectively.

In 2022, compared to 2021, the construction of new residential buildings showed an increase of 7,6%. The number of dwellings therein also grew by 20,5%, as well as the total floor area, which increased by 13,5%.

In 2022 compared to 2021, the number of residential buildings brought into use has increased by 35,0%, whereas the number of dwellings therein grew by 9,9% and the total floor area increased by 15,5%. Around 77,9% of these buildings are made of reinforced concrete, which shows a growth of 36,9%. The share of brick buildings is 18,6% which shows a growth of 28,8%. The panel and other types of finalized buildings hold 3,5%.

Non-residential construction

The construction permits for the administrative/office buildings have decreased by 27,1 % and the total floor area decreased by 36,5%. The other buildings saw a 1,2% decline as well as a 0,6% decrease in the total floor area compared to 2021.

The Nnew construction of administrative/office buildings shows a decline of 16,1%, whereas the decline in the total floor area is 42,1% on an annual basis.

Civil engineering

The civil engineering reports a growth of construction output of 5,8% compared to the previous year, and forms a share to 43,5% of the total construction output.

In 2022, the number of announced public procurement notices in the construction sector is 4 419, amounting to €5 963 million. This represents a 23,9% increase in the number of notices and a 119.,9% increase in their total value compared to 2021. The number of concluded contracts under public procurement notices in the construction industry in 2022 is 3 958, amounting to € 2 758 million. This shows a 0,7% decrease in the number of contracts and a 48.,3% increase in their total value on an annual basis.

Prices of construction materials

The National Statistical Institute in Bulgaria publishes an Index of producer prices on the domestic market of construction materials (total for all construction materials). However, the index of producer prices on the domestic market of construction materials increased by 73,1% in 2022 compared to 2021.