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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.

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• Estonia 2000
  
• Estonia 2007
  

In the residential real estate market the new apartments in the Tallinn city center can be purchased for $750-800/sq.meter (1 sq.meter=10 sq.feet). Renovated old apartments cost around $600/sq.meter, unrenovated - $400/sq.meter and apartments in wooden houses - $250/sq.meter. In the Tallinn suburbs apartments cost between $250 and $350 per sq.meter. Estonian buyers are looking for properties predominantly in the suburban areas, while foreign residents tend to look for high return investments in central Tallinn. For prime location offerings, on one hand the supply is limited, demand is ever growing and the prices are going up. On the other hand, supply of the secondary location spaces exceeds demand, and potential buyers are waiting for further encouraging signs from the economy and for further increase in their incomes* before making purchases. As a result, owners of secondary location residences often have to lower their asking prices to make sales.

In the other large towns like Tartu and Parnu, the residential properties can be obtained for $200-250/sq.meter. The private house prices go between $500-800/sq.meter for the new buildings in the Tallinn suburbs. The renovated house cost varies between $150 and $600 per sq.meter depending on the exact location. The unrenovated single family houses range from $100 at the lowest to the $400/sq.meter at the highest. In Tartu and Parnu houses can be found for between $100 and $600/sq.meter.

The apartment rents in central Tallinn start from $130/month and can reach $400/month for 1BR. The rents for 2BR vary between $170 and $700 per month, for 3BR - between $400 and $800 a month and for 4BR - between $500 and $1500 per month. The greatest demand in the residential rental market still comes from expatriate professionals looking for quality apartments in Tallinn city center. They are particularly interested in 70 to 100 sq.meters units (2 to 3 rooms) which have to be furnished, including modern amenities, and located in cosy buildings. Rents are diminishing slightly for unfurnished and secondary location apartments, as supply is exceeding demand. Rents for prime location and furnished apartments are stable and are expected to remain so for at least the coming year.

In Tallinn suburbs, the rents for 1, 2, 3 and 4 bedroom apartments are $80-150, $140-250, $160-320 and $180-350 per month respectively. The house rent in the Tallinn suburbs can reach as high as $2000 per month. The cheapest can be found for just $300 a month. In the other large towns like Tartu and Parnu the rent for smallest apartment is as low as $40 a month. For the biggest apartments the rent jumps to $400 per month. The monthly house rent in either town can be as high as $700-800.

In the commercial real estate market the office spaces in Tallinn city center can be rented for $6-15/sq.meter a month **. The development activity by banks in the recent years has resulted in a dramatic increase in the amount of class A (by Western standards) office space which puts downward pressure on rents overall.

The retail space rental rates jump to $10-35/sq.meter a month. Not far from the center, several new shopping complexes have recently opened, most notable was the 21,000 sq.meter Kristiine Keskus Shopping Mall, where monthly rents are $17/sq.meter.

In the capital city suburbs, the offices may be rented $4-10/sq.meter per month. The rents for retail spaces diminish to $8-20/sq.meter per month. The modern warehouses can be found for $3-5/sq.meter a month and the industrial property for $2-3/sq.meter.

Five years is the most common length of a lease in Tallinn, although it is always possible to negotiate periods of 1 up to 10 years. Consent of both sides is required to extend a lease contract. Its termination clauses generally stipulate a 90-day notice. In Tartu and Parnu the office spaces are rented for $3-10/sq.meter and the retail spaces - between $3 and $17/sq.meter a month.

The land in Estonia is still in a process of privatization and a growth in available land is expected in the near future. The capital city center plots are available for $250/sq.meter and more, while in the suburbs and near the major roads the prices for lots vary around $25 to 30/sq.meter. Compared to the other countries in Northern Europe, the agricultural and raw land in Estonia, is still heavily undervalued. Land prices are expected to grow over the next few years while the country prepares to enter the EU.

The property tax in Estonia consists only of a tax on land. The rate is 0.5 to 2.0 percent of the assessed value of the land, as determined by the local municipality. Acquisitions of property are subject to a 0.15 to 1.0 percent transaction tax, which is levied based upon the contractual transaction value or the estimated market value of the property, whichever is greater.

* The GDP per capita in Estonia has increased from $1318 in 1994 to $3368 in 1998.

** Rents in Estonia are mostly denominated in US dollars or German Marks. The quoted rents generally include only the payments to the landlord. The real payments also include the VAT (Value added tax) of 18 percent (only if the owner is a VAT-paying entity), utilities and service charges (usually $3 to 10 per month in prime locations). The landlords are looking for permanent tenants and can negotiate terms within 10 percent of the asking price.

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See also the directory of companies providing real estate services in, and general real estate information of Estonia.