The construction sector in Bulgaria will record moderate growth until 2027, according to an analysis by the Institute for Economic Policy.

The new report of the Institute for Economic Policy (IEP) on the development of the construction sector in Bulgaria forecasts moderate but stable growth in total construction output in the country for the period 2025-2027. The average annual increase is expected to be around 3%, with the growth rate being higher in the middle of the period, when an acceleration in the absorption of funds from the operational programs and the implementation of the Recovery and Resilience Plan is envisaged.

According to the sectoral breakdown, residential construction will be the subsector with the weakest results, while the forecast for non-residential construction and especially for civil engineering is for more significant growth. At the same time, in 2025 and 2026, the country will record a slower economic growth than initially forecasted.

The IEP report was prepared within the framework of the partnership with the Eastern European Construction Forecasting Association (EECFA), which includes research organizations from eight countries in Southeast and Eastern Europe. The full forecasts for the development of the construction sector with a horizon until 2027 for Bulgaria and the other countries can be found on the EECFA website.

Parallel to the expected development of the construction sector, in 2026 Bulgaria's full membership in the Schengen area and the adoption of the euro as the official currency on January 1, 2026 are also expected. These events will also have an impact on the country's economy.