Bulgaria Construction Market Size, Trends and Forecast by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Construction, 2022-2026

Bulgaria Construction Market Size, Trends and Forecast by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Construction, 2022-2026

Summary

The Bulgarian construction industry declined by an estimated 6.4% in real terms in 2021. The estimated outturn is worse than GlobalData had previously anticipated, owing to a resurgence of Coronavirus (COVID-19) cases in August, followed by subsequent containment measures that disrupted the progress of construction projects. According to preliminary data released by the National Statistical Institute (NSI), the industry’s value add fell by 7.6% year on year (YoY) in the first three quarters of 2021. The country’s construction production index also declined by 4.5% YoY in October 2021, with that of buildings construction declining by 4.5% and civil engineering construction falling by 4.5%, according to NSI. The construction industry is forecast to recover in 2022, with growth of 8.3% in real terms. Public investments, specifically in the transport, energy, and institutional sectors, is expected to increase substantially in 2022, due to the support from NextGenerationEU grants, which is estimated to total 10% of GDP during the next four years. In October 2021, the Bulgarian government submitted its recovery and resilience plan to EU to access NextGenerationEU grants. The country requested BGN12.8 billion ($8.1 billion) in grants, which will cover the country’s plan until 2026. The plan includes measures in areas such as the decarbonization of the economy, education and skills, research and innovation, smart industry, energy efficiency, sustainable agriculture, digital connectivity, social inclusion, and healthcare.

The industry is expected to grow at an annual average rate of 4% between 2023-2026, aided by increases in transport, energy, and health sector investment. The government’s target to increase the installed capacity for renewable generation in line with the EU's target of 32% by 2030 will facilitate investment. The forecast period will also be supported by joint investment in railway infrastructure from the Bulgarian transport ministry and the EU between 2021 and 2027, under the operational programme, “Transport Connectivity 2021-2027”. However, Bulgaria’s vaccination rate is the lowest among EU countries, and is therefore more heavily exposed to the risk of future COVID-19 waves - the enforcement of new restrictions would hamper the construction industry’s recovery in the short and medium terms.

This report provides detailed market analysis, information, and insights into the Bulgarian construction industry, including -

• The Bulgarian construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Bulgarian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Bulgaria. It provides -

• Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Bulgaria, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.