Construction Bulgaria

In 2007 Bulgaria’s gross domestic product (GDP) marked a 6.2% growth on the year to BGN 56.5 bln. The gross value added (GVA) in the same period stood at BGN 46.4 bln, up 6.3% year-on year.
Bulgaria's economy grew by 6.1% in 2006 and the Government expected an even higher growth in 2007. Gross value added (GVA) for 2006 totalled BGN 39.972 bln, up 6.0% compared to 2005.
According to a survey of the Bulgarian National Statistics Institute among managers from the construction, retail trade and services sectors, the business confidence slightly improved in February 2008, backed by a 0.9 point of the overall business climate indicator compared to the previous month.
The optimism in the forecasts for the construction sector in February 2008 led to an increase of the overall indicator for the sector which grew 4.9 points above the January level. Experts foresee a boom in the construction activity over the next three months.
Construction has been one of the fastest developing sectors of the Bulgarian economy since 2002, influenced by the country's booming real estate market.
The Bulgarian construction sector is distinguished as a growing market, attractive for both international developers and investors, and is under the influence of strong housing demand, the ongoing boom in the tourist sector and the overall economic growth as well as the country's EU membership since January 2007.
The market is still dominated by local contractors and consultants. Foreign developers and owners, however, are still affected by low quality, late delivery and cultural and language barriers. 
The Bulgarian Building and Construction Chamber (BBCC) has 1,806 members, including 495 companies based in Bulgaria's capital Sofia.
In 2006 the Bulgarian construction market was worth EUR 4.6 bln, an increase of 15.4% year-on-year. The experts forecast the trend to continue in 2007 and reach a 17% growth in 2008 – 2009, mainly due to the launch of several major infrastructural projects financed with EU funds and increasing foreign direct investments. At the same time, the main risk factor is the insufficient supply of new manpower in the construction industry.