The number of residential new builds brought into operation in the last quarter of 2022 hit record for the last ten years. According to preliminary data from the National Statistical Institute (NSI), in October - December 2022 1,613 residential buildings received Act 16, the final stage of control during construction, which certifies that the building is fit for living. This is 392 (32.1%) more than the same quarter in 2021. The newest buildings are in Sofia District (296), followed by Plovdiv District (232) and Varna District (182).
The total number of commissioned dwellings is 5708, which is also a 10-year record for the last quarter of a calendar year and 5.3% more compared to the same period in 2021. There are 1997 new homes in the capital, 517 in Plovdiv, and 742 in Varna.
The rise in the number of new buildings comes as a result of increased construction activity in the context of higher demand that intensified during the pandemic, rising housing prices, accelerating inflation, and heightened uncertainty due to the war in Ukraine.
Cheap mortgage loans for end-buyers and demand from people seeking a safe haven for their dwindling savings amidst soaring inflation are the two factors that helped construction entrepreneurs in the last quarter of 2022.
Bigger and stronger
According to NSI's data, 78.9% of residential new builds in the fourth quarter were of reinforced concrete construction, and 17.4% were of brick construction. Among the new buildings, "the share of newly built houses is the largest (81.3%), followed by housing cooperatives (13.0%)," says NSI. Compared to the same period in 2021, houses increased by 42.81%, while cooperatives decreased by 2.78%.
The total usable area of new buildings has also increased in the fourth quarter of 2022, by 19% year-on-year to 631.5 thousand square meters. The residential area proper is 494 thousand square meters of the total, up 18.7%. In addition, the average usable area of a newly built home increased by nearly 15% to 110.6 sq.m.
The largest average usable area of a single newly built dwelling was registered in the districts of Silistra (226.9 sq.m) and Montana (188 sq.m), but the newly constructed buildings in them are solely or mostly single-family houses. In the regions of Vratsa (55.4 sq.m) and Veliko Tarnovo (78.9 sq.m), the average area of a single newly built dwelling is the lowest, according to NSI's data.