Sofia real estate market – the need for a strategic FDI city positioning June 2019

Historical CEE investment volumes EUR bn, annual/ quarterly 13.8 13.1 Q4 Q3 Q2 Q1

Historical Bulgaria investment volumes EUR mln, annual

Investment market Q1 2019

Office market Q1 2019

Retail market Q1 2019

Industrial market Q1 2019

The need of smart FDI city positioning TOP 10 major European cities of the future 2018/19 – cost effectiveness Tbilisi, Georgia Sofia, Bulgaria Kiev, Ukraine Minsk, Belarus Bucharest, Romania Riga, Latvia Zagreb, Croatia Saint Petersburg, Russia Warsaw, Poland Prague, Czech Republic Source: FDI intelligence.com

Sofia - FDI At the end of 2016, the cumulative FDI in Sofia was 12.2 billion EUR (2000-2016). This was 52% of the FDI to Bulgaria. Source: NSI

FDI in Sofia by sector (2000-2015) Source: NSI

Priority industries in Sofia Fintech Outsourcing and Shared Service Centers Creative industries (Gaming, Interactive leisure, Advertising, Architecture, Design, Cinema industry) Tourism Manufacturing Source: Sofia Business Guide 2019

City FDI promotion strategy of the year* City FDI strategy for the year City's strengths and weaknesses which shaped the formation of the FDI strategy How was the strategy implemented? How successful was the strategy? - KPIs * Process developed by Emerging Europe for their city FDI strategy award 2019

A case study– Vilnius Emerging Europe Awards 2019 (23 countries) Key sectors primed for investment: FinTech IT (Game development, Cybersecurity and Data Centres) Biotechnology Electronics and optics Lithuanian government provides R&D grants used to reimburse costs for R&D operations, R&D infrastructure and innovation change management. Forward-thinking regulations: Fastest E-money or payment license Sandbox regime for FinTech start-ups and a Lite bank license.

A case study – Vilnius Emerging Europe Awards 2019 (23 countries) Integration of foreign talent: To attract and retain investors, Go Vilnius implement three strands of activities: Direct support for international companies Regular contact with investors Industry-specific approach in aftercare initiatives The result: Vilnius labor force working for foreign investors is increasing every year Amounted to a third of the entire Vilnius labor force in 2018 Foreign investors also take the role of participants and creators of innovations Blockchain Centre Vilnius, opened in 2018, is the first blockchain technology center in Europe According to Invest Lithuania and FDI Markets, in 2018 Vilnius Municipality attracted: 40 projects in total, accounting for 3,214 new jobs and 76.7 million euro in Capex

Sofia – a city with future potential? Global cities index: current performance Global cities outlook: future potential 27 metrics across 5 dimensions Rank and score determined by totaling the weighted averages 13 metrics across 4 dimensions Rank and score determined by averaging the rate of change across each metric using the past 5-years data, then projecting out to 2029 Source: A.T. Kearney 2019 Global cities report

Thank you! Iglika.yordanova@colliers.com