Bulgaria: Covid-19 proptech impact report

38.5 % of Bulgarian PropTechs say the C-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. We have already witnessed the exceptional restructuring of Flat Manager done by Boris Pavlov, the company’s Founder. 

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.

Details follow:

According to a survey completed by Techleap.nl in March with tech companies in the Netherlands, the biggest challenges they face are as follows,

  1. 29 % – lower demand by customers
  2. 27 % – external funding is more difficult now
  3. 26 % – prospective loss of some of our customers/ business 

We see the same results from the survey UKPA (UK PropTech Association) completed among their members. The survey was published on 03.04.2020 г. The largest challenges which PropTech companies in the UK encounter are (1) cash flow decrease, and (2) decline in customer demand for their services. 

Bulgarian PropTechs state the same consequence as the one which affects them the most, namely, reduced customer demand (61.5 %). Next come  all cancelled meetings, travels and events of crucial importance (46.2 %). The third place is occupied by 2 more challenges of equal effect for Bulgarian PropTech companies (38.5 %). These are: the prospective loss of some clients/ business (the same holds true for Dutch tech companies), and delayed payments by customers.

According to an online poll conducted by Nordic PropTech Initiative during their webinar on  06.04.2020 г., 70 % of PropTechs state that the demand for their service has either not changed, or has increased; some even hardly meet the need for their services. 

According to the results of a second poll completed by PropTech Lab (Belgium) as part of their webinar on 09.04.2020 г. 80.85 % of PropTechs declare the same. 

38.5 % are the Bulgarian PropTechs that assert the same. 53.8 % specify that there is a decrease in the demand for their services as a result of the corona crisis. 

Interestingly, the poll carried out by PropTech Lab (Belgium) says that 90 % of incumbent RE players (RE Corporates) affirm that presently it is much more important to implement innovations if they want to keep their market share and survive.

In the pre- C-crisis time 44 % of them have invested moderately, and 41 % – from a lot to tremendously large. Currently, only 25 % count it sufficient to invest moderately, as juxtaposed to 61 % who have already started to invest considerably more than the average. 

This is a highly favourable consequence for Bulgarian PropTech companies. Evidently, there are open possibilities for cooperation with incumbent RE players both in Bulgarian, and in Europe.

See all the details in BULGARIA: COVID-19 PropTech Impact Report below


Any part of this Report is prohibited for distribution unless PropTech Bulgaria grants written consent. 

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