Construction Sector Contributes Significantly to Bulgarian Economy - Construction Entrepreneurs
The construction sector is one of the few significant multipliers in the Bulgarian economy, and construction entrepreneurs are among the key sources of revenue for the State and employment, including among marginalized communities, the National Association of Construction Entrepreneurs (NACE) told a BTA-hosted news conference here on 25 November. The news conference on the construction sector's contribution to Bulgarian economy was organized by NACE to inform the public about residential construction's benefits.
NACE was represented by Chairman Georgi Shopov; Emiliya Tsokonova-Cholakova, managing partner of Match More; Asen Chavdarov, co-owner of Contract City; Dimitar Savov, CEO of BLD; and Dr. Shtelyan Kalchev, managing partner of Imvestia.
Shopov said that everyone sees and feels the negatives of residential construction, but very little is said and very little is known about the benefits. He added that construction is manufacturing, and every manufacturing industry is the foundation of a country. The contribution of the construction sector to the gross domestic product (GDP) for 2024 was 4.2%, which corresponds to nearly BGN 12 billion in revenue for the state budget, according to data reported by Shopov. He also said that the relative share of entrepreneurs in residential construction in GDP increased by 11% in 2024.
Tsokonova-Cholakova presented data on the contribution of construction entrepreneurs to job creation, emphasizing the social impact of the sector in terms of employing people from marginalized communities. According to her, construction companies today are among the largest employers in the country. According to the data presented, construction workers employed in the sector represent over 8% of the workforce in Bulgaria in 2025. Salaries increased by 17.8% in gross remuneration in the first half of 2025, with a 12% increase in the average gross salary for the country in the first half of 2025. She specified that the growth is not due to inflationary processes, but reflects the employer's assessment of the skills of the employees. She also reported a 34.3% drop in unemployment in the construction sector in the first half of 2025 compared to the same period of 2024.
Chavdarov presented the importance of the construction sector for the state budget. "Construction is one of the few significant multipliers in the Bulgarian economy. Every BGN 1 spent on construction creates about BGN 1.8 to 2 of additional added value. Similarly, each job generates at least 1.5 to 2 jobs, because construction is linked to dozens of other sub-industries," said Chavdarov. The tax contribution of the construction sector is about BGN 7.5 billion, he said, adding that this figure includes the entire range of taxes – direct and indirect, VAT, and local taxes and fees. Another BGN 2.3 billion have been paid in the form of salaries, and BGN 1 billion in social insurance contributions. According to Chavdarov, construction companies are among the key sources of revenue for the State, rather than beneficiaries of public funds.
During the news conference, data were presented from a sociological survey on the main problems in urban infrastructure. The poll was conducted by the Trend agency on behalf of NACE among 357 people in Sofia, Plovdiv, Varna, Burgas, and Stara Zagora. Based on the opinions of the participants, the survey highlights parking as the main problem, followed by traffic and mobility, and air quality. According to the data presented, construction ranks fourth.
"Construction today is not what it was decades ago - the specifics of the materials are different, the processes are significantly faster, the machines are more efficient, and communication has been optimized," said Kalchev. This development in the sector can reduce construction times by between 30 and 50%.