Bulgaria: Effects of COVID-19 on PropTech companies
The PropTech Bulgaria report on the effect of the pandemic has revealed that 38.5% of Bulgarian property technology (PropTech) companies have not encountered any decrease in demand for their services. For a part of these companies the corona crisis has even influenced the demand favourably. They are experiencing a considerable increase for services due to a number of decisive advantages, namely:
- Flexibility and adaptability: 76.9% of Bulgarian PropTechs surveyed have already been restructuring their business;
- Financial health: 84.7% have a cash buffer for a period of 3 to 12 months time, and around. 54% have a cash buffer which will suffice for more than 6 months;
- Human resources: Around 77% of Bulgarian PropTechs continue to employ their workforce;
- Continued business and product development: PropTech companies in Bulgaria continue their business and product development despite of the pandemic.
An online poll conducted by the Nordic PropTech Initiative during their webinar on 6 April showed that the demand for 70% of participating PropTech firms has either increased or not changed. Similarly, according to the results of a poll completed by PropTech Lab as part of their webinar on 9 April, demand for 81% of Belgian PropTech firms has increased.
- Another PropTech Lab poll showed that 90% of incumbent real estate players believe it is much more important now to implement innovations if they want to keep their market share and survive.
- Prior to the Coronavirus outbreak, 44% of these firms invested moderately, and 41% significantly. Since the virus, 61% have already started to invest considerably more than average.
- Bulgarian firms should see this as an opportunity to collaborate and cooperate with real estate players across the continent.
Please find the full report of the Bulgaria PropTech Impat Report here. To discuss this topic in the COVID-19 Forum, please follow this link.
Source: European Cluster Collaboration Platform
