Overall construction activity
In 2021, the economic activity in Bulgaria was significantly affected by the COVID-19 pandemic. The gross domestic product (GDP) of the country amounted to € 67.871 million, representing a decrease of € 6.541 million compared to 2020. In 2021, the gross value added (GVA) at current prices for the entire economy amounted to € 59.013 million, a decrease of € 5.851 million compared to 2020. For 2021, the relative share of GVA in the construction industry is 3.8% of the GDP, amounting to € 2.599 million, whereas the registered economic decrease is € 15 million on an annual basis.
According to the preliminary data of the National Statistics Institute the construction industry output for 2021 registered a decrease of 30.7% compared to 2020.
Based on the statistical forecast data, the revenues of the construction enterprises for 2021 will register a decline (the actual data will be published on 30 November 2022). The expected share of the residential construction in total operating revenue of the construction industry is 25.2%, of the non-residential construction – 23.7% and of the civil engineering – 51.1% respectively.
The gross fixed capital in construction assets decreased by € 212 million compared to the previous year.
According to preliminary data, the direct foreign investments in the construction industry for 2021 decreased by € 264.3 million, which represents a significant decline of 118.1% on an annual basis compared to 2020 (the data is a subject to revision).
The employment in the construction industry. The employed in the construction sector represent 5.7% of total employment in the economy and their number has increased by 1.8% compared to 2020. The unemployment in the sector for 2021 is 8.4% of the total unemployment. The increase in unemployment is 1.4% for the whole country and 14.3% for the construction industry compared to 2020.
There are 6 203 (as of March 2022) the construction companies in the Central Professional Register of Builders of the Bulgarian Construction Chamber (BCC), out of which 6 140 are Bulgarian legal entities and 63 foreign companies. 483 companies were deleted 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” 87.13% of the inscribed construction companies are small, 11.78% are medium-sized and 1.09% are large companies.
Housebuilding
The building construction, which contributes to 56.2% of the total production in the sector, registered a decrease of 31.7%.
The total number of issued construction permits for 2021 has increased by 19.5% on an annual basis while the total floor area has increased by 27.2%. The number of the residential buildings increased by 20.3%, whereas their total floor area – by 25.1% respectively.
In 2021 compared to 2020, the construction of new residential buildings showed an increase of 23.5%, the number of dwellings therein also grew by 21.3% as well as the total floor area - by 21.4% respectively.
In 2021 compared to 2020, the number of residential buildings brought into use has increased by 16.4%, whereas the number of dwellings therein grew by 16.0% and the total floor area increased by 22.5%. Around 76.9% of these buildings are made of reinforced concrete, which shows a growth of 15.2%. The share of brick buildings is 19.4% which shows a growth of 17.7%. The panel and other types of finalized buildings hold 3.7%.
GDP 2021
BILLION
POPULATION 2021
Total investment in construction in 2021
BILLION
Non-residential construction
The construction permits for the administrative/office buildings have increased by 1,1 % and the total floor area increased by 14,5%. The growth for other buildings is 18,8% and the growth in the total floor area is 32,5% compared to 2020.
The new construction administrative/office buildings shows a decline of 21,1%, whereas the decline in the total floor area is 30,7% on an annual basis.
Civil engineering
The growth of civil engineering is slowing down, such as construction output declining by 29.4% compared to 2020 and forming a share of 43.8% of the total construction output.
In 2021, the announced public procurement notices in the construction sector are 3.567, amounting to € 2.712 million. Compared to 2020, there is a growth of 36.0% in terms of number and a decline of 7.3% in terms of value. The concluded contracts under public procurement notices in the construction industry are 3.929 in 2021, amounting to € 1.817 million, which shows an increase of 14.0% in number and a decrease of 23.7% in value on an annual basis.
Per cent variation of investment in real terms on previous year | |||||||
investment Mln. € fixed prices | |||||||
Sectors | 2021a | 2018 | 2019 | 2020 | 2021a | 2022b | |
1. | Building | 3,665 | 7.6 | 3.1 | -5.3 | 3.5 | N/A |
1.1. Housebuilding | 1,887 | -0.8 | 2.3 | 2.2 | 5.3 | N/A | |
1.1.1. New | 1,655 | 0.1 | 3.2 | 4.9 | 2.7 | N/A | |
1.1.2. Renovation | 232 | -6.6 | -4 | -17 | 28.2 | N/A | |
1.2. Non residential (c) | 1,778 | 16.5 | 3.8 | -12 | 1.7 | N/A | |
1.2.1. Private | N/A | N/A | N/A | N/A | N/A | N/A | |
1.2.2. Public | N/A | N/A | N/A | N/A | N/A | N/A | |
2. | Civil Engineering | 3,824 | 16 | 3.4 | 84.4 | -33.2 | N/A |
(1 + 2) | Total Construction | 7,489 | 11.3 | 3.2 | 35.4 | -19.2 | N/A |
a: estimate - b: forecast - c: incl. R&M |
Number of building permits in residential construction | |||||||
2018 | 2019 | 2020 | 2021a | 2022b | |||
single dwelling | 5.774 | 5.980 | 5.860 | 7.047 | n/a | ||
collective dwelling | 35.526 | 32.783 | 29.438 | 39.998 | n/a | ||
other types of dwelling | 4.954 | 4.711 | 4.039 | 4.781 | n/a | ||
Total | 10.728 | 10.691 | 9.899 | 11.828 | n/a | ||
(Collective dwellings and other types of buildings: in number of flats) |