Sofia - the center of investment activity in Bulgaria

The property market is booming, but this cycle is very different from the pre-2007 period and investors are more selective.

Sofia attracted 54% of the country's investment and formed 40% of Bulgaria's gross domestic product (GDP). This was pointed out by the mayor of the capital Yordanka Fandakova at the opening of the BalREC Real Estate, Construction and Investment Forum.

The most active sector, which attracts the most investments at the moment, are the start-up companies in the field of information technology (IT), Fandakova commented. Only IT sector in the capital invested BGN 216 mln, which represents 2% of the investments in the city, she added.

The mayor of Sofia has stressed that the local administration is also among the main investors. For the programming period 2007-2013 the city has invested BGN 3 billion.

Yordanka Fandakova commented that the municipality is supporting as a priority the investments that support the development of Sofia as a green and innovative city and a city of people. She reminded that the next year will continue the implementation of major renovation and rehabilitation projects with the renovation and transformation into a pedestrian zone on Graf Ignatiev Street, the space around the Alexander Nevsky Cathedral, the renovation of the West Park and others.

She also recalled that the local administration is laying down strict rules for urban development. The proposed and approved by the Municipal Council amendments to the Construction and Construction Act of the Sofia Municipality are submitted to the National Assembly and are expected to begin their discussion soon.

The investment environment - why investors choose Bulgaria

Bulgaria's President Rosen Plevneliev (2012-2017) commented that our country is at the bottom of many charts in Europe but has "sound macroeconomic fundamentals" and good prospects for growth and development. This, according to him, creates tremendous potential.

Erden Bilginer of the Turkish investment company Garanti Koza, which has two large-scale projects in Sofia, added that Bulgaria is making tremendous progress and is the fastest growing country in the Balkans and probably in Europe.

It highlighted the lower investor costs, the increased demand for space in the different segments of the market, low taxes, EU membership, the implementation of European legislation that provides investor security, the growth of incomes of the population and balanced asset valuations.

The investor added that if Bulgaria had suffered years ago because of the "brain drain" from the country, lately the trend is the opposite - people returning as well as Europe sending technical staff to Bulgaria.

According to Bilginer, there is a "niche" for the development of mixed-type projects in Sofia, which continues to attract new and new investors given its dynamic development and the availability of quality projects.