Bulgaria

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%.