From powering nearly 5% of the nation's GDP to propelling a wave of ambitious infrastructure projects, Bulgaria's construction industry is building a foundation for remarkable growth, as evidenced by a sector that saw its total works soar to 18.5 billion BGN in 2023—a robust 12% annual increase.
Key Takeaways
- In 2022, Bulgaria's construction sector contributed 4.8% to the national GDP, amounting to approximately 10.2 billion BGN in gross value added
- The total value of construction works in Bulgaria reached 18.5 billion BGN in 2023, marking a 12% increase from the previous year
- Bulgaria's construction market size was valued at USD 7.2 billion in 2021, with expectations to grow steadily
- In Q4 2023, Bulgaria's construction production grew by 5.2% year-on-year
- The annual growth rate of Bulgaria's construction turnover was 11.8% in 2022
- Bulgaria's building construction permits issued increased by 15.4% in 2023 compared to 2022
- The number of employed persons in Bulgaria's construction sector was 193,200 in 2022
- Construction employment rate in Bulgaria was 4.9% of total employment in Q4 2023
- Average monthly gross wages in Bulgarian construction reached 1,850 BGN in 2023
- Bulgaria's construction buildings segment output was 7.9 billion BGN in 2023
- Civil engineering output in Bulgaria totaled 6.4 billion BGN, 35% of total in 2022
- Residential buildings construction value was 4.2 billion BGN in 2023
- Bulgaria invested 2.1 billion EUR in EU-funded infrastructure projects in 2023
- The Struma Motorway project Phase 3 cost 450 million BGN and completed in 2022
- Sofia Metro Line 3 extension received 300 million EUR funding in 2023
Bulgaria's construction sector is experiencing strong growth with significant residential and infrastructure investment.
Economic Contribution and Market Size
- In 2022, Bulgaria's construction sector contributed 4.8% to the national GDP, amounting to approximately 10.2 billion BGN in gross value added
- The total value of construction works in Bulgaria reached 18.5 billion BGN in 2023, marking a 12% increase from the previous year
- Bulgaria's construction market size was valued at USD 7.2 billion in 2021, with expectations to grow steadily
- Residential construction accounted for 42% of the total construction output value in Bulgaria in 2022
- The non-residential building construction segment in Bulgaria generated 3.8 billion BGN in 2022
- Civil engineering works in Bulgaria totaled 6.1 billion BGN in 2023, representing 33% of the sector's total output
- Bulgaria's construction industry turnover index stood at 115.2 in 2022 (2015=100)
- The construction sector in Bulgaria employed capital worth 25.4 billion BGN in fixed assets as of 2022
- In 2021, Bulgaria's construction production volume increased by 9.7% year-on-year
- The value added at factor cost in Bulgaria's construction was 7.9 billion BGN in 2020
- Bulgaria's construction sector represented 5.1% of total employment in the economy in 2022
- Total construction enterprises in Bulgaria numbered 12,450 in 2022
- Micro-enterprises dominated Bulgaria's construction with 92% of total firms in 2021
- Average personnel costs in Bulgarian construction reached 12,500 BGN per employee annually in 2022
- Bulgaria's construction apparent labour productivity was 78,200 BGN per employee in 2022
- The construction industry's share in Bulgaria's total investments was 22.3% in 2023
- Bulgaria's construction output per capita stood at 1,450 EUR in 2022
- Total turnover of construction firms in Bulgaria was 16.8 billion BGN in 2021
- Bulgaria's construction sector exported services worth 450 million BGN in 2022
- Intermediate consumption in Bulgaria's construction reached 10.3 billion BGN in 2022
Economic Contribution and Market Size Interpretation
While the skeleton of Bulgaria's economy might be only 5% construction by weight, its recent 12% growth spurt suggests it's not just holding up the floor but actively building the new rooms, with residential properties making up nearly half the blueprint and every fourth investment lev going into its foundations.
Employment and Labor Statistics
- The number of employed persons in Bulgaria's construction sector was 193,200 in 2022
- Construction employment rate in Bulgaria was 4.9% of total employment in Q4 2023
- Average monthly gross wages in Bulgarian construction reached 1,850 BGN in 2023
- There were 245,000 persons employed in construction including self-employed in 2022
- Unemployment rate in Bulgaria's construction sector was 3.2% in 2023
- Female employment in construction constituted 12.5% of the workforce in 2022
- Average age of construction workers in Bulgaria was 42.3 years in 2021 survey
- Part-time employment in construction was 4.1% of total jobs in 2023
- Temporary employment share in Bulgarian construction was 18.7% in 2022
- Construction firms employed average 15.5 persons per enterprise in 2022
- Youth employment (15-24) in construction was 8.2% of sector workforce in 2023
- Labor shortages reported by 65% of Bulgarian construction firms in 2023 survey
- Average working hours in construction were 41.2 hours per week in 2022
- Vocational training participation in construction workforce was 22.4% in 2021
- Migrant workers comprised 11.3% of construction labor in Bulgaria in 2023
- Employment cost index in construction increased by 10.5% y-o-y in 2023
- Bulgaria's construction sector had 12,450 enterprises employing 193,200 in 2022
- Older workers (55+) made up 28.6% of construction employment in 2022
Employment and Labor Statistics Interpretation
Bulgaria's construction sector is a paradox of robust employment and deep-seated anxiety, where a graying workforce clings to the scaffolding while firms, haunted by a 65% labor shortage, offer rising wages that can't quite lure enough new hands to the trowel.
Growth and Performance Indicators
- In Q4 2023, Bulgaria's construction production grew by 5.2% year-on-year
- The annual growth rate of Bulgaria's construction turnover was 11.8% in 2022
- Bulgaria's building construction permits issued increased by 15.4% in 2023 compared to 2022
- Construction confidence indicator in Bulgaria rose to -15.2 points in December 2023
- Bulgaria's construction production index for new work rose 7.1% y-o-y in 2021
- The sector experienced a 3.2% contraction in civil engineering output in Q1 2023
- Bulgaria's residential construction grew by 18.2% in volume terms in 2022
- Non-residential construction output increased by 4.5% y-o-y in 2023
- Bulgaria's construction investment growth rate was projected at 4.8% for 2024
- The turnover growth in specialized construction activities was 13.7% in 2022
- Bulgaria's construction sector recovery post-COVID saw 9.5% growth in 2021
- Building completion index in Bulgaria advanced 12.3% y-o-y in 2022
- Construction costs index in Bulgaria rose by 8.9% in 2023
- Bulgaria's gross fixed capital formation in construction grew 6.4% in 2022
- The sector's value chain growth was 10.2% for buildings in 2023
- Bulgaria's construction employment growth was 2.1% in 2023
- Productivity growth in construction stood at 5.7% y-o-y in 2022
- Bulgaria's construction average annual growth rate from 2018-2022 was 7.3%
Growth and Performance Indicators Interpretation
Despite a pervasive, Eeyore-like gloom in the confidence surveys, Bulgaria’s construction sector, fueled by permits and rising costs, is stubbornly building its way to a recovery one new apartment block and specialized contract at a time.
Investments, Projects, and Forecasts
- Bulgaria invested 2.1 billion EUR in EU-funded infrastructure projects in 2023
- The Struma Motorway project Phase 3 cost 450 million BGN and completed in 2022
- Sofia Metro Line 3 extension received 300 million EUR funding in 2023
- Bulgaria's construction market forecasted to reach USD 9.5 billion by 2027, CAGR 5.2%
- Residential construction investments projected at 5.8 billion BGN for 2024
- Government capital expenditure on construction budgeted 4.2 billion BGN in 2024
- FDI in Bulgarian construction sector totaled 180 million EUR in 2022
- Hemus Motorway Lot 3.1 investment 250 million BGN underway in 2023
- Black Sea Highway rehabilitation project cost 120 million EUR, completed 2022
- Sofia Airport Terminal 2 expansion 200 million EUR investment planned 2024
- Maritsa Motorway 3rd lane project 350 million BGN funded by OPIC 2023-2027
- Construction market growth forecast at 4.1% annually to 2028
- Private sector investments in commercial real estate 1.8 billion BGN in 2023
- EU Cohesion Fund allocation for Bulgarian infrastructure 7.5 billion EUR 2021-2027
- Varna residential developments investment 950 million BGN pipeline 2024
- Plovdiv industrial parks construction 400 million BGN invested 2022-2023
Investments, Projects, and Forecasts Interpretation
While steering a fleet of EU-funded projects towards a forecasted market of USD 9.5 billion, Bulgaria's construction sector is building more than just infrastructure; it's constructing the very framework for its economic future, one motorway, metro line, and residential block at a time.
Sector Segmentation and Output
- Bulgaria's construction buildings segment output was 7.9 billion BGN in 2023
- Civil engineering output in Bulgaria totaled 6.4 billion BGN, 35% of total in 2022
- Residential buildings construction value was 4.2 billion BGN in 2023
- Non-residential buildings output reached 3.7 billion BGN in 2022
- Road construction works valued at 2.8 billion BGN in Bulgaria 2023
- Utility projects (water, sewer) output was 1.9 billion BGN in 2022
- Specialized construction activities generated 9.1 billion BGN turnover in 2023
- Demolition and site preparation output was 450 million BGN in 2022
- Electrical installations segment output 1.2 billion BGN in Bulgaria 2023
- Plumbing and HVAC works valued at 950 million BGN in 2022
- Building completion and finishing output 2.1 billion BGN in 2023
- Roof covering and roofing works 650 million BGN in Bulgaria 2022
- Floor and wall covering installation 780 million BGN output in 2023
- Painting and glazing works valued at 550 million BGN in 2022
- Other construction installation output 1.1 billion BGN in 2023
- Railway construction segment was 380 million BGN in Bulgaria 2022
- Bridge and tunnel construction output 620 million BGN in 2023
Sector Segmentation and Output Interpretation
Bulgaria's builders are clearly betting the house on houses, given the residential sector's towering 4.2 billion BGN, yet they haven't forgotten to pave the way there, with roads and utilities quietly forming the crucial—and lucrative—foundation of the nation's growth.
Sources & References
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