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.
For 15%, coronavirus has led to an increase in business, however 54% have seen a drop in demand.
The report suggests that the nation’s proptech firms are in good stead to weather the storm:
- 85% have a cash buffer for a period of 3 months or more, and 54% have a buffer for more than 6 months
- 77% of Bulgarian proptechs surveyed have already been restructuring their business
- Not a single Bulgarian proptech company surveyed has brought its business and product development to a halt because of the corona crisis
The biggest hurdles
Of the firms surveyed, 62% ranked reduced customer demand as the biggest challenge, followed by cancelled meetings, travel and events, at 46%.
How does this compare internationally?
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.