Bulgaria – Central and Eastern Europe’s Innovative Technology Hub

One of the major factors characterising demand for commercial property is the “offshoring” of activities by international companies to Bulgaria. This trend is driven by cost and tax factors, people skills and availability as well as the overall pro-business environment. Coupled with increased domestic demand from service industries and the young population, demand for office, retail and residential property continues to grow.

Sources of Demand

Demand for premium office premises comes from large multinational corporations as well as from Bulgarian companies. Demand is still rising as companies value high-quality working environments in good locations which promote high labour productivity and efficiency.

Highly Skilled and Cost Effective Human Capital

Bulgaria has a long history of specialising in high technology industries and was dubbed the Silicon Valley of Eastern Europe. Bulgaria has a skilled and sophisticated workforce including many talented computer programmers and engineers.

The highly-rated education system still has its strong historical focus on science and engineering, with one of the highest percentages of tertiary students studying these subjects in Europe. The World Bank rates the country fifth globally in science education and eleventh in mathematics.

These competitive advantages are enhanced by the fact that Bulgaria has one of the lowest labour costs in Europe. According to UBS, hourly wages in Sofia are 25% lower than in Bucharest and less than half of Prague.

Overall package

In addition, Bulgaria has one of the lowest corporate tax rates in Europe (10%) making it the CEE location of choice for high-end foreign direct investment and the indigenous firms which service their needs.

To view our Bulgarian properties, visit our website: www.washingtondevelopments.ie

Bulgaria – An Emerging Economic Success Story

Bulgaria has experienced a strong and sustained economic upturn which began prior to the country signing accession agreements with the EU in 2005.

Bulgaria’s economy is enjoying a period of robust economic growth and providing the foundation for sustainable growth into the future. The favourable economic outlook associated with Bulgaria’s membership of the EU and high rate of return on investments has attracted a high level of foreign direct investment (2007 – €6 billion). In 2006 Bulgaria attracted 10% of all investment into CEE and 25% of investment into the Balkan countries. EU accession has had a clear stimulating effect on the economy and the development of Bulgaria’s infrastructure.

Bulgaria has had 35 continuous quarters of GDP growth. According to the EIU strong economic growth is expected to continue with annual growth rates in excess of 4.5%.

Economic growth has stimulated domestic demand and pushed up wages and disposable income. Personal disposable income doubled between 2000 and 2006 and is expected to rise by another 50% annually until 2010.

With an excellent track record in Bulgaria, Washington Developments have successfully developed both residential and commercial properties in Sofia. For more information on any of our properties visit our website: www.washingtondevelopments.ie