The construction sector in Bulgaria has been growing by 12%-14% y/y recently, thus outperforming the growth in the entire economy. Booming construction activity in the last several years has been reflected in the sector's constantly growing share in the gross domestic product of the country. Construction contributes approx. 5% of GDP, which is still a low share as compared to that of other European countries.
A huge number of real estate projects in major Bulgarian cities and seaside and mountain resorts have been contributing to the growth of the construction sector output. This segment is expected to continue to be the main driver of the sector in the short run, although infrastructure construction will start gradually playing a more important role. Some of the main priorities are the development of the motorway network, construction of a second bridge over the Danube, and Sofia Airport reconstruction. Infrastructure development in the gas distribution sector will also increase in the coming years with the licensing of regional distributors.
NECA's construction sector expertise spans construction materials and infrastructure construction. NECA can offer value added services in regulatory, economic and market research; finance raising; identification, access to and liaison with target companies for mergers and acquisitions.
NECA successfully consulted Castel, a leading Bulgarian producer of PVC and aluminum window frames, on a debt restructuring transaction, advised Castel on strategic/financial partner search, and worked on a business development project for Castel.
NECA advised a major European construction company and a leading UK supplier of heavy building materials on their expansion in Bulgaria.