Mr. Boyadzhiev, what will be the priorities of Galaxy Investment Group’s investment program?
The company traditionally invests in projects with development potential, which bring a good return on investment. Our long experience in the acquisition, planning, construction, management, assets sale and lease in the commercial property market have made us a market leader, with key projects of our investment portfolio having competitive advantages that attract the interest of clients and investors. We are currently expanding our focus on various sectors of the economy, we are ready to invest and participate as a co-investor in projects with potential, together with local and foreign partners.
What are the trends and projections for 2016 for the development of the property market? Where are the investors directed?
The demand for quality office space, to meet the needs mostly of representatives of the IT and outsourcing industries, will persist. Bulgaria is a preferred location for new investments in these sectors, and this implies increased demand for offices of companies that are expanding their business or are starting it now. Increasingly, new offices are created outside Sofia, which creates a prerequisite for sustainable growth in the market for office space in major cities, especially in Plovdiv.
Overall, I expect a significant strengthening in the sector this year. Investors are directed to buildings that have the potential for higher returns. These are already completed buildings or those that stand to be completed, with good location and long-term rental contracts.
Increasingly common news is spreading about new industrial investors entering Bulgaria. What is your forecast of the market development of industrial areas?
Industrial zones will be one of the hot topics in this market. The good news is that the manufactures built in them generate significant economic growth. So I think these companies should be encouraged. A more dynamic development in this segment will certainly be a sign of the improval of the overall business climate and the willingness of investors - Bulgarian and foreign, to develop and expand notably in Bulgaria. Development in the sector has made Plovdiv the industrial capital of Bulgaria. The key location attracts more companies, including major world producers from different sectors. This is due to the lower production costs and the developed infrastructure in the area. In 2016 Plovdiv will remain a preferred destination for investors. The authoritative newspaper "Financial Times" named Plovdiv the third best city for business investment in Europe for a reason. We believe that the investment in a new office building that our company launched last year, will invigorate the economy in Plovdiv, change the face of the city and help create many new jobs. With the project "Office Park Plovdiv" we are actually realizing the potential of our city as a developing business destination.
Investment in commercial real estate is assessed as a low risk, but less liquid. What are other options for investors?
It is a fact, that lately Bulgaria is perceived as a good place to invest in young companies. The development of startup culture, entry of major IT companies and the return of many young successful Bulgarians from abroad are factors that encourage investment funds to support various start-ups. There are already several examples of started small companies that sold quite successfully to large investors. My prediction is that the funds will continue to invest their money in high-tech projects because there is potential, besides, they have a high added value. Ultimately, high technology affects all sectors of the economy and is a key driver of growth. In order to develop this sector, however, a significant change in the education system is needed. The first steps are already being taken by individual companies that develop their schools for training of personnel. The state also demonstrates a willingness to change educational policies and has recently adopted the Concept to promote training of software professionals, which provides for the creation of prerequisites for further training for over 30,000 people over the next 15 years.
Source: Ikonomika magazine