Bulgaria

Overall construction activity

In 2020, the economic activity in Bulgaria was significantly affected by the COVID-19 pandemic. Bulgaria’s GDP amounted to €60.6 billion, a decrease of €597 million compared to 2019. In 2020, the gross value added (GVA) at current prices for the entire economy amounted to €52.4 billion, a decrease of €376 million compared to 2019. In 2020, the GVA of the construction industry represented 4.2% of the GDP and amounted to €2.5 billion, whereas the registered economic growth is €193 million on an annual basis. According to preliminary data from the National Statistics Institute, in 2020, the construction industry’s output decreased by 0.3% compared to 2019. Forecasts indicate that construction companies’ revenues registered a slight decline in 2020. Residential construction is expected to represent around 26.6% of total operation revenue, while non-residential construction and civil engineering represent 26.3% and 47.1% respectively.  Gross fixed capital formation in construction decreased by 5.7% compared to the previous year. According to preliminary data, in 2020, foreign direct investment in the construction industry decreased by €11.8 million, a significant decline of 18.6% compared to 2019.

Employment in the construction industry represented 5.6% of total employment in the economy with the number of employees decreasing by 1.7% compared to 2019. As of 9 March 2021, 5,953 construction companies were registered in the Central Professional Register of Builders of the Bulgarian Construction Chamber (BCC), out of which 5,895 are Bulgarian legal entities and 58 foreign companies. 85.99% of the registered companies are small, 12.81% are medium-sized and 1.2% are large companies.

Housebuilding

Building construction, which contributes to 57% of the total production in the sector, registered a decrease of 3.4% in 2020. The total number of issued construction permits for 2020 decreased by 7.4% on an annual basis while the total floor area shrank by 14.1%. The number of residential buildings and their total floor area decreased by 2% and 9% respectively. In 2020, the construction of new residential buildings experienced a decrease of 2.5%, the number of dwellings declined by 9.5% and the total floor area by 12.3%. In 2020, the number of residential buildings brought into use increased by 10.3%, the number of dwellings by 27.6% and the total floor area by 28.2%. Around 78.4% of these buildings are made of reinforced concrete, which represents an increase of 12.7%. The share of brick buildings amounts to 18.5%, a growth of 3.0%. Panel buildings and other types of buildings represent around 3%.