Bulgaria: The PropTech report on the effect of the pandamic
The PropTech Bulgaria report on the effect of the pandemic has revealed that nearly 40% of Bulgarian proptech companies have not encountered any decrease in demand for their services.
38.5 % of Bulgarian PropTechs say the COVID19 crisis has not caused a decrease in the demand for their services. For part of these companies the corona crisis has influenced favourably the demand and there is a considerable increase for their services. Despite, the rest 62.5 % encounter a decrease in demand. However, Bulgarian PropTechs stand out with a number of decisive advantages, namely,
► Firstly, an exceptional flexibility and adaptability. 76.9 % of Bulgarian PropTechs surveyed have already been restructuring their business. And this makes true resilence.
► Secondly, 84.7 % have a cash buffer for a period of 3 to 12 months’ time, and app. 54 % have a cash buffer which will suffice for more than 6 months. Just to compare, 73 % of tech companies in the Netherlands have a cash buffer for no longer than a 6 months’ period.
► Thirdly, app. 77 % of Bulgarian PropTechs don’t lay people off.
► Next, there is not a single PropTech company in Bulgaria that has brought its business and product development to a halt because of the corona crisis. Just the opposite.
An online poll conducted by the Nordic PropTech Initiative during their webinar on 6 April showed that for 70% of participating proptech firms, demand for their service has either increased or not changed. According to the results of a poll completed by PropTech Lab as part of their webinar on 9 April, 81 % of Belgian proptech firms declare the same.
- 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 coronavirus, 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.
You can download the full BULGARIA: COVID-19 PropTech Impact Report free of charge here.