After a substantial contraction for two years, Bulgaria's construction sector will start growing again in 2011, according to the "Bulgaria Infrastructure Report Q2 2011" Report by Research and Markets.
"We anticipate a moderate construction market recovery in Bulgaria over the period 2011-2015, after two years of contraction generated by the global economic downturn. The private sector should drive this recovery in the country's construction market, amid a wider economic upturn and fiscal constraints on the public sector's ability to fund infrastructure projects," the report forecasts.
It explains that overall activity in Bulgaria's construction market contracted by 4.9% in real terms in 2009, after growth of 9.8% in 2008. Research and Markets estimates that the sector contracted in real terms by 4.6% in 2010. This is a revision of its previous forecast for a contraction of 3.1% in 2010, due to poor data for the first nine months of the year, which showed a fall in real sector output of 5% year-on-year (y-o-y).
"However, we should see a return to moderate sector growth in 2011, at a rate of 2.9%. Our cautious optimism is underscored by the following: Bulgaria's economy experienced real GDP growth of 2.1% y-o-y in Q410, taking growth for the year as a whole to 0.7%, compared to an earlier forecast of an annual contraction of 0.4%. This recovery should be sustained in 2011, helping to boost private sector activity in the construction market," the report says.
It further points out that both the commercial property market (retail and office space) and the residential real estate markets in Bulgaria should receive significant support from the recovery in real economic output, amid an improved outlook for commercial investment, consumer demand and disposable incomes.
The Research and Markets report is based on information industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Bulgaria's infrastructure industry.