Crisis in neighboring Greece – advantage for Southwest Bulgaria
The deep crisis in neighboring Greece threatens the Bulgarian economy for sure, but it may turn out into an advantage for small local settlements along the Bulgarian-Greek border. The national statistics marks a growth in the number of small and medium-sized companies that re-locate their activities from Greece to Southwest Bulgaria. These companies become important employers in the border area around the town of Petrich, Sandanski, Bansko and Blagoevgrad.
Besides the growing political and economic instability in neighboring Greece, major economic factors, such as tax policy, lower salaries and social security benefits, along with the real estate prices that have dropped over the past 2-3 years, are the reasons for the relocation of Greek business activities to this country. “Bulgaria is also a EU member-state and this eases those companies a lot in their transfers,” Ilia Levkov from the Blagoevgrad branch of the Bulgarian Chamber of Commerce underlines.
“Bulgaria can praise with stability and low taxes. It is easier to make business here, compared to Greece, where companies have to deal with bigger economic, financial and tax burden,” Ilia Levkov says. “They look for a better place for their development. Unfortunately the low salaries in Bulgaria that have to be fixed also attract foreign businessmen. I don’t think this is an advantage, it is more an export of national revenues and means that labor of the people here is not properly assessed.”
Greek companies, especially textile ones have invested in Southwest Bulgaria for years. This interest continues even during the economic crisis in neighboring Greece. Ilinka Miteva, head of the representation of one of the big Bulgarian real estate agencies in the town of Blagoevgrad confirms that: “People do show bigger interest towards industrial estate, heavy industry, related to metal trading, production of reinforcing steel, cast-iron and metal products. The price of real estate properties is lower, compared to Greece, despite the crisis in the sector.”
This all can also be said on the holiday properties in the world famous winter resort of Bansko, situated only 50 km away from the Greek border. Each year the town enjoys a growing number of Greek tourists. “More and more of those opt for a purchase of some holiday property in the mountainous resort, thus investing their endangered savings,” Ilinka Miteva adds. What are the customers like?
“These are predominantly doctors, dentists, clerks. The Greek middle class people buy Bulgarian real estate properties, i.e. citizens with serious and constant income over the past years,” Ilinka Miteva says. “Is it a form of saving money or an investment of savings? The answer is more likely yes. Our Greek customers realized a long time ago that this was a profitable way for rescuing their savings, while waiting for the prices to go up.
Text and photo: bnr.bg
(23.05.2012)