Although the interaction between planning and the market in urban development
has been the subject of extensive research, its treatment in the literature
is still problematic and controversial. Issues regarding this interaction
remain topical for post-socialist urban planners, who are still lacking
sufficient experience with planning in market conditions, especially when it
comes to practice. The contribution of this study is that it identifies two
practical approaches, through which urban planners can coordinate plans with
markets. First, when setting planning goals, planners must critically assess
the relationship between these goals and market demand. If market demand is
distorted by market deficiencies, planning must look for opportunities to
counteract and rectify distortions, but if market demand properly reflects
the interests of stakeholders in urban development, planning must critically
reassess its definition of the public interest. Second, when developing
urban plans, planners must employ fiscal (financial, monetary) and
market-oriented tools for their implementation. To study these
relationships, the paper explores different aspects of development in Sofia,
the capital of Bulgaria, as Sofia is a relevant example of the urban trends
in post-socialist cities.