It’s possible that the building industry in Bulgaria isn’t exactly one of the most profitable ones there are. In spite of this, the construction of any kind of property in Bulgaria, whether it be residential, commercial, or industrial, is a very intriguing investment proposition. This is due to the fact that the costs of construction and land are relatively low, while at the same time there is an increasing demand for contemporary and high-quality real estate. Additionally, there has been a notable rise in the number of loans offered by both domestic and international financial institutions in Bulgaria for the purpose of financing the acquisition of residential or commercial property. In recent years, Bulgaria’s industrial and commercial building sectors have been experiencing a period of unprecedented growth. The fast expansion of business in Bulgaria and the installation of operations by international businesses in the country are both factors that have contributed to the growth of the commercial sector. In addition, since Bulgaria is now a member of the European Union, projects in the industrial construction sector are now eligible for EU finance, which has resulted in a boom in the industrial construction industry. 2015 was a pivotal year for the construction sector, as it marked the beginning of a shift away from the increasingly unfavorable pattern that had been developing over the previous years. The data from various statistical indicators show a favorable trend and point to the anticipated rate of recovery and development in the reconstruction phase of the construction industry. The freezing of a large number of building projects around the country contributed to the contraction of the Bulgarian construction sector. Various projects, including those involving real estate, office space, logistics centers, and warehouses, as well as others, were either put on hold or terminated entirely. Although beneficial, the infrastructure improvements that were prioritized during the global crisis were not able to compensate for the stagnation and compression that the sector was experiencing. This reduction may also be ascribed to the high unemployment rate in the nation, the recession in the economy, a big budget deficit, poor company confidence, and weak consumer demand, as well as the dismal economic situation in the eurozone. composition of the construction output in Bulgaria In Bulgaria, the residential construction sector has experienced a significant decline, while the civil engineering sector has experienced a massive increase. This shift in the composition of the construction output in bulgaria can be seen in the pie chart below. After reaching a high of 10.19 percent in February of 2016, the percentage of unemployment in Bulgaria went down to 9.88 percent in March. The unemployment rate in Bulgaria ranged from a record low of 4.68 percent in April of 1991 to an all-time high of 19.27 percent in February of 2001. Between 1991 and 2016, the unemployment rate in Bulgaria had an average of 12.04 percent. According to the data provided by the National Statistical Institute of Bulgaria, the real GDP of the country grew by 0.7% during the third quarter of 2013. It is anticipated that the real GDP of Bulgaria will report a growth rate in the range of 0.4 to 0.7 percent. The primary reasons for this low growth rate are the high unemployment rate and the low level of private spending. Over the period of 2014-2017, it is estimated that the growth of Bulgaria’s GDP would accelerate to an annual rate of 3.0 percent. This is expected to be supported by a gradual increase in domestic demand as well as an anticipated recovery in the eurozone, which will enhance exports from Bulgaria. According to the Bulgarian National Statistical Institute (nsi), the number of new start up buildings was 2,935 in the third quarter of 2012, however in the third quarter of 2013, it was 3,156, which indicates an increase of 7.5 percent. During the time period under consideration, the building of infrastructure was the most lucrative segment of the Bulgarian construction sector, accounting for 47.1 percent of the industry’s overall value in 2015. It is anticipated that the market’s significance will grow over the course of the projection period, to the point where it will account for 48.7 percent of the industry’s overall value in the year 2020. The measures that the government has in place to strengthen the transportation infrastructure of the nation, such as the program to develop transportation and infrastructure for the years 2014-2020, will serve to bolster the market. During the timeframe of the prediction, several road infrastructure projects are anticipated to reach their conclusion. the important themes that are predicted to promote development in the construction industry in Bulgaria The expansion of the construction industry in Bulgaria may be attributed to a number of different elements that have a role in the country’s socioeconomic environment. The Bulgarian government has implemented a significant number of reforms in recent years in order to strengthen the country’s building industry. During the third quarter of 2013, the government issued 3,817 permits for the construction of new residential buildings and 56 permits for the construction of new administrative buildings. These numbers are expected to support demand in the construction industry over the course of the forecast period. In addition to this, the government has decreased the interest rates on mortgage loans in order to stimulate the housing industry. It is anticipated that the reduction in interest rates would assist the development in demand for residential property in Bulgaria. The market will be supported by the growing demand for residential building as a result of urbanization and a better economy. Deep insights into the commercial, residential, and industrial construction industries in Bulgaria are provided in the research paper titled “construction in Bulgaria: major trends and possibilities until 2020.” The market has been segmented based on the kind of project, the activity level, and the cost. Major players have also been covered, with particular emphasis placed on their market share as well as their standing at the moment. Click on the following link to learn more about “Construction in Bulgaria: Key Trends and Opportunities to 2020:” https://www.kenresearch.com/manufacturing-and-construction/infrastructure/construction-bulgaria-key/25242-97.html. reports that are connected https://www.kenresearch.com/manufacturing-and-construction/infrastructure/commercial/29569-97.html https://www.kenresearch.com/manufacturing-and-construction/infrastructure/worldwide-construction-industry-research-report/115-97.html Ankur Gupta, Head of Marketing and Communications at Ken Research may be reached at query@kenresearch.com or by calling +91-124-4230204.
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