Bulgaria's construction output slips as EU activity rises

Construction output in Bulgaria edged down in April, diverging from a broader increase across the European Union, according to Eurostat data.

Construction production in the EU rose by 0.8% month on month in April, while output in the euro zone increased by 0.6%. Bulgaria, by contrast, recorded a marginal decline of 0.1%, placing it among countries with weaker short-term momentum.

Despite the monthly slowdown, Bulgarian cities still offer considerable scope for new development, according to Georgi Shopov, chairman of the National Association of Construction Entrepreneurs. He said demand for housing continued to be supported by rising incomes, while much of the country's housing stock was ageing and in need of renovation or replacement.

Shopov also identified administrative procedures as a major challenge for the sector. Delays in issuing building permits, he said, were limiting the supply of new homes and affecting prices on the property market.

Editor: Elena Karkalanova