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Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.
He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.
In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.
Global Real Estate Project
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Baltic bubble deflatingThe real estate prices in best performing EU markets, the three former Soviet Union republics, Lithuania, Latvia, and Estonia, are going down for the first time since the Russian financial crisis of 1998. After reaching and overcoming some of the older European markets in terms of investment returns and price levels, these new markets are on the verge of experiencing the crisis due to shrinking demand and global uncertainties. With Russians' easy money and western cheap credit gone, with shrinking population to sustain future market growth, these markets are perhaps entering an era of maturity and stagnation. Last but not least, the return of Russia as international nemesis of the West creates additional risk premiums for the markets located around the line where their interests may potentially clash. The Baltic economic success story is an illustrative one. Starting from a level of relative abundance during the Soviet regime, the same level however as some new countries in the Caucasus, in less than 20 years the three former communist republics are on the verge of entering the club of the richest nations, the one that requires GDP per capita of $20,000 and more. To put the things into comparative perspective, it took South Korea almost 40 years to reach the same good results after starting its economic reforms in early 1960s. With economic growth matching and even surpassing even that of China, these three countries, all other trends being equal, would have caught up with the most developed European nations in less than a decade. If they wouldn't, it won't be their fault. Moving so fast may be possible in the economics textbooks, but in the real life not too many have been able to make it. How did they make it? By applying tested economic formulas and by relying on the good luck that smiled at them for the first time in many decades. More liberal economic regimes, less bureaucracy, more business-friendly environment, less ideology, putting the interest of investors first, no rude party influence in technocratic decisions, far-seeing international affiliation, high level of social trust among the ethnic majority, and the belief that this time the good opportunity must be taken; these are among the many factors that facilitated this phenomenal economic and real estate market growth. Starting with residential prices as low as those in Albania, these three former Soviet republics have now reached and even surpassed some Central European nations, including some with mature markets. At least three independent factors explain the current deflation on the real estate market, beyond the simple but wrong assumption that the markets can't surpass some imaginary line determined by more matured markets. First, it's the global financial crisis that shrinks radically supply of fresh and cheap credits, thus eliminating part of the demand for more modern developments. The reason why the Baltic States are more severely touched by this storm now is probably due to the fact that these countries were more exposed on such credits. Second, Russians through their kinfolk could have withdrawn some of their investments in search for higher returns elsewhere in the former Soviet Union or Eastern Europe. Third, the new aggressive foreign policy approach of Russia may create anxiety among foreign investors. The three states are precisely at the fault line between the West and Russia.
Baltic states (Lithuania, Latvia, Estonia) profiles: --------------------
See also the directory of companies providing real estate services in, and general real estate information of Latvia, Lithuania and Estonia.
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