Properties in Region Sofia, Bulgaria

Region Sofia - short description:

The capital of Bulgaria

During the whole period of its existence as a capital of Bulgaria, Sofia proved to be the most dynamically developing territory of the country. This fact had its economic, political and social explanation. The extremely significant importance of Region Sofia in national and local aspect viewing its influence upon the entire economical and social development of the country is the reason why it serves as a "region of development", in compliance with the new Law for the Regional Development. The definition "region for development" considers a municipality or a compact group of municipalities possessing economic and social functions. The above - mentioned municipalities have been chosen as objects for special influence due to their potential for accelerated and stable growth in national aspect. The execution of their functions is in connection with the development of functions related to high technologies, market infrastructure, development of export-orientated production, sphere of international and regional services.

Regional influence
The basic factors that form the leading position of the city of Sofia in regional and national aspect need to be developed at a higher level viewing its new contribution to the national economy and the enlargement of the capital functions and influence.

The capital of the country
Because of its statute as a capital of the country, the city of Sofia concentrates supreme and unique functions. The capital is the major administrative, economic, political and cultural, trade and tourist centre of Bulgaria. It concentrates the institutional infrastructure implementing management functions with international, national and local importance and it affects all spheres of the social and economical life of the country. The availability of the largest educational institutions, scientific institutes, financial services, and development of the sphere of service assist the development of the managing and intellectual potential of the capital city. The capital statute is in relation with the established trade contacts, the activation of easy restoration of some traditional markets and the creation of new market positions. The concentration of management functions, respectively of information, tends to be an extremely important condition for the dynamic development of the particular territ orial unit, in accordance to the contemporary theory for the regional and city development, this being the reason for the development of the above-mentioned function. The basic decision need to be made at a new level of the specific elements taking part in the formation of the institutional and the management infrastructure of the capital, as well as at new structural and qualitative level of the elements and their grouping, in order to achieve general influence.

Location
An important characteristic of the capital proves to be its high transport - communication accessibility in comparison to the rest regions of the country in national, regional and local aspect. It is determined by the concentration of point- and linear communications possessing local, regional and international importance.

The following basic roads cross the region: The European trans-highway E5, the railway connections with Central, West, North and South Europe, the airport of Sofia, etc. The capacity of the created phone centrals equals to 18% of the total for the country and the number of the phone posts - 20%. The phone density is two times higher than the average, which is due to the highest concentration of modern communication and information equipment, nevertheless Sofia is far behind the development of the other big capital cities in Europe.

Because of its position as a major communication centre and due to its well - developed connections for inter - regional exchange, the Region of Sofia has great opportunity for formation of influence upon the exchange of goods and services in the whole country. In such a way, it has an effect upon the production of goods and services, as long as the great part of it find place at the Sofia market, which proves to show the highest rate of search in the country, the reason being the concentration of population and its comparatively higher income.

The influence in regional aspect related to the realization of goods and services on the market creates the need of development of modern trade- and communication infrastructure situated out of the territory of the main city.

Created material basis for all sectors of the economy
In national aspect, the significance of the city of Sofia is determined by its participation in the formation of 34.3% of the material production, 13.9% of the number of people engaged in the material sphere and 31% of the created production funds in the country.

An extreme significance for the national economy show the spheres of communication /90%/, transport /77%/, trade /46%/ and building activities /45%/ developed in the capital city. Nevertheless the above - mentioned indexes are heightened, the reason being the character of the formation of the results, they definitely prove to be an evidence for the leading functions of the city of Sofia concerning the above - mentioned sectors.

In regard to the employment, these sectors engage a large number of people in the structure of the national employment - about 22-24% engaged in the trade, transport and communications; 36% in the sphere of building and 12.1% in the industry.

Tendency for investment attraction
The macroeconomic situation in the country during the last few years of transition towards market economy and the crisis that took place at the end of 1996 year had a large negative influence upon the development of the investment processes as a whole, as well as to the amount of the incoming foreign investments. This fact has a great effect upon the capital adequacy of the economy of the city.

Data analysis shows that for the last few years there is an increase in the interest of foreign investors towards the economy of the capital city, which is a result from the radical structural changes. It is obvious that, in case in the following 1-2 years the process of stabilization turns into an economic growth, it might become a great stimulus for a sharp increase of the investment activation.

The amount of the foreign investments in all sectors of the capital economy equals to 582 992 thousand dollars and represent 42% of the total amount of the foreign investments in the country. At second rank is Varna - 16% and at third - Region Sofia - 11% of the total amount of foreign investments.

Analysis of the sector structure of the foreign investment shows that greatest interest has been paid to the following sectors: trade - 31%, finances - 23% and services 13%.

The greatest investors are: Germany, 163 million dollars - 28%; The Republic of Korea, 46 million dollars - 8%; Holland, 41 million dollars - 7%; Great Britain and USA, 39 million dollars each - 6.5%; Greece, 36 million dollars; Austria, 30 million dollars; Russia, 18 million dollars, etc.

Regarding the low investment activity in the country, ? of them DMA expenses find place in the economy of the capital city of Sofia, which provides greater opportunities for development of the fund- and production structure. The share of the capital for the development of the trade, the transport and the communications is the highest, in respect with the total amount on investments in the country. This tends to be a function of the structure determining role of these sectors in national aspect.

copy&paste from sf.government.bg

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