The construction sector is the leading driver of economic growth in our country, demonstrating the most significant contribution to GDP compared to other sectors. For 2024, the industry forms 11% of the economic volume against the background of a 9.6% contribution from trade and transport and 6% from financial and insurance activities. This is according to data from an analysis by the National Association of Construction Entrepreneurs (NASP) on the contribution of construction to the economy and public finances in Bulgaria. The sector also has a significant positive impact on employment, income, urban infrastructure.
According to Eurostat data, the overall GDP growth for the period 2023-2024 is 3.4%. In individual economic sectors, the dynamics vary from double-digit growth to decline, with the reported values ranging between -7.2% and +11%, and construction is the sector with the greatest contribution to GDP growth.
„Construction is one of the key drivers of the economy because it connects investments, the banking sector, material production and the urban environment. And today we are ahead of other major economic sectors”, emphasizes Georgi Shopov, Chairman of the National Construction and Housing Association and Managing Owner of TOBO GROUP.
„Behind the planning and implementation of each project are a chain of businesses and people who are directly involved in the process. When there is significant construction activity in a region, these are not just buildings, but new jobs, infrastructure, new services, development of the urban environment. This gives impetus to the production of building materials, transport and logistics, design and engineering, financial services, trade, the furniture industry and other sectors. As long as there is active and strong construction, the country will enjoy a stronger economy.“
NASP data indicate that in one year nearly 2 million sq. m. of new housing were built in the country – a scale that shows a sustainable demand for new, modern homes and a real need for modern housing construction in large cities and developing areas.
„New homes are a response to the real life need of people to improve their quality of life. And this means that they expect the construction of adjacent infrastructure – streets, sidewalks, parking spaces, green spaces”, emphasizes Dimitar Savov, Executive Director of BLD.
„According to calculations by the National Association of Bulgarian Housing Developers, construction entrepreneurs in Sofia have invested 115 million leva in infrastructure. This represents a cost of 30 to 50 euros per square meter on the total area of residential buildings. In the case of boutique buildings and houses, it reaches up to 100 euros in cost per square meter. In practice, buyers pay for the construction of the streets and the connecting infrastructure, although it is a commitment of the municipality and the utility companies.”
According to him, the care of the inner-neighborhood streets has already been taken over by the construction entrepreneurs. A good example is ul. „Boyan Petrov”, where private investment ensured free access and movement of residents in the area. Construction activity can go hand in hand with the qualitative development of the urban environment.
With 156,382 employed in construction, which represents 7% of the country's workforce, the sector reports sustainability. Salaries have seen a significant increase of 17.8% per hour worked, against a 12% increase in the average gross salary for the country in the first half of 2025.
„Construction forms a significant volume of wages paid in the economy and is one of the largest employers in the country. The data report a 5.1% increase in employment on an annual basis. Unemployment in the construction sector has decreased by 34.3% in the first half of 2025 compared to the same period in 2024.“, notes Emilia Valentinova Tsokonova-Cholakova, Managing Partner of Match More.
„The sector has a social effect in terms of the demarginalization of some social groups. It provides opportunities for people with lower educational qualifications and social status to be part of the labor market, thereby providing stability for many households. At the same time, construction also creates employment opportunities for people living in smaller settlements near the main economic centers.”
In addition to being a key employer for the economy, companies in the sector are also a major taxpayer.
„In one year alone, construction entrepreneurs have paid taxes in the amount of 7.5 billion leva. In the public debate about construction, only the cranes and construction sites are often seen, but the contribution to public finances is rarely taken into account“, commented Assen Chavdarov, CEO of CONTRACT CITY.
„Another 2.3 billion leva were paid in the form of salaries, and 1 billion leva were social security contributions, which shows the role of the industry as a main pillar of fiscal stability. Builders are among the key sources of revenue for the state, not a beneficiary of public funds.”
According to him, these numbers should be the starting point when discussing regulations, urban planning and the investment environment: „A sector that is a significant taxpayer deserves a predictable regulatory framework and a partnership approach from institutions, and not to be perceived solely through negative stereotypes.“
A survey by the sociological agency „Trend”, commissioned by the National Agency for the Protection of the Environment and Social Protection and conducted among 357 people in Sofia, Plovdiv, Varna, Burgas and Stara Zagora, indicates the main problems in urban infrastructure according to citizens.
Parking was cited as the main problem, followed by traffic and mobility, as well as air pollution. In fourth place, respondents point to active construction activity.
„We understand that construction activity creates temporary discomfort for residents - noise, movement of equipment, limited access. We strive to impose higher standards and modern construction methods, so that we can not only satisfy our clients' expectations faster, but also reduce the inconvenience for residents nearby. Construction today is not what it was decades ago - the specifics of the materials are different, processes happen significantly faster, machines are more efficient and communication is optimized - without this being at the expense of quality. International data shows that these processes shorten construction times by 30 to 50%. This practically means a period that is half as short. The important thing is that upon completion of the project, we will have not only a modern building for the future residents, but also a more orderly environment and better social infrastructure for the entire neighborhood”, comments Dr. Shtelyan Kalchev, investor and property consultant, co-founder of Imvestia.
The National Association of Construction Entrepreneurs remains committed to transparent communication regarding the development of the sector in the country.