Bulgaria

Overall construction activity

In 2023, the Bulgarian economy loses momentum, resulting in slower but still positive growth compared to 2022.

The country's gross domestic product (GDP) is €93 947 million, an increase of 1.8% compared to 2022. In 2023, gross value added (GVA) at current prices for the whole economy amounts to €82 418 million, an increase of 0.8% compared to 2022. In 2023, the relative share of GVA in construction is 3.4% of GDP and amounts to €3 160 million, while the reported economic growth is 0.7% on an annual basis.

According to the preliminary data of the National Statistical Institute, the output of the construction industry will increase by 18.3% in 2023 compared to 2022.

According to the statistical forecast data, the operating revenues of construction companies will register a growth in 2023 (the final data will be published on 29 November 2024). The expected share of residential construction in the total operating revenues of the construction industry is 27.9%, non-residential construction - 21.6%, and civil engineering - 50.5%.

Gross fixed capital formation in construction increased by 723 million euro compared to the previous year.

According to preliminary data from the Bulgarian National Bank (BNB), foreign direct investment in the Bulgarian construction sector is expected to increase by € 61.7 million in 2023, representing an annual growth of 199.0% compared to 2022 (data subject to revision).

Employment in the construction sector. Those employed in the construction sector represent 5.6% of total employment in the economy and their number has increased by 1.8% compared to 2022. Unemployment in the sector in 2023 is 11.0% of total unemployment. The increase in unemployment compared to the previous year is 4.0% for the country as a whole and 23.7% for the construction industry.

As of 06 March 2024, there were 6 945 construction companies registered in the Central Professional Register of Construction Companies maintained by the Bulgarian Construction Chamber (BCC). This data is based on the year 2022. Among these companies there are 6 901 Bulgarian legal entities and 44 foreign companies. 455 companies have been deleted from the register of construction companies due to non-compliance with the procedures provided for in Article 20(2) of the Bulgarian Construction Chamber Act. On the basis of the criterion "personnel", 87.21% of the registered construction companies are small, 11.95% are medium-sized and 0.84% are large companies.

Housebuilding

Building construction, which accounts for 57.7% of the sector's total output, recorded an increase of 20.8%.

The number of residential buildings with building permits issued for 2023 decreased by 0.05%, while their total floor area decreased by 4.9%.

In 2023, compared to 2022, the construction of new residential buildings showed an increase of 7.0%. The number of dwellings decreases by 2.0% and the total floor area decreases by 3.6%.

In 2023, compared to 2022, the number of residential buildings brought into use decreased by 2.8%, while the number of dwellings within them increased by 6.1% and the total floor area increased by 3.1%. Around 76.0% of these buildings are made of reinforced concrete, a decrease of 5.2%. Brick buildings account for 20.7%, an increase of 6.6%. Panel and other types of completed buildings account for 3.3%.

Non-residential construction

Building permits for administrative/office buildings have increased by 14.3% and the total floor area has increased by 82.9%. There is a 6.3% increase in other buildings and a 15.5% increase in total floor area compared to 2022.

The new construction of administrative/office buildings shows a growth of 19.1%, while the growth of the total floor area is 25.2% on an annual basis.