Archived Articles

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
News Index

Directories
  Int'l Realty
  US Realty

Between 17th and 20th October Sofia (Bulgaria) hosted the 7th Annual Conference of CEREAN*. The associate members of 9 countries of the region - Bulgaria, Hungary, Czech Republic, Poland, Romania, Russia, Ukraine, Slovakia and Albania presented their views and comments on the ongoing market developments and prospects.

The main point of interest among the other was to present the possibilities of the local and the foreign investments in the region. Other topics were the development of the new Internet technologies in the real estate business as well as the licensing process of the real estate companies in Central and Eastern Europe. Special guests on the Conference were some off-the-region foreign real estate companies, bank institutions and the Bulgarian administration representatives.

In the focus of the Conference was the real estate market developments in Bulgaria which is (if we quote the Reuters news agency) "a Balkan country of 8 million mostly impoverished people". The facts about this country aren't very rosy for any real estate agent or consultant company wishing to settle its business there.

On one hand, we have more than 80 percent (some say more than 90 percent) of the households that own their houses and apartments. On the other hand, we have market prices that exceed any possibility to purchase a new residential property for an average family**. Third, in the last 5-6 years we have a decrease in the real estate prices which makes a nonsense any thought of buying in order to sell later with some profits (a dream for any investor). Fourth, the land market so far isn't liberalized for foreign investors which is a major hurdle for any market development. The Bulgarian governments on many occasions have promised to change the Constitution to allow the foreigners to buy some land but so far these promises remain without any practical consequences.

The Bulgarian participants in the Conference agreed that the fastest way of the real estate market development would pass through the economic integration within the European Union which would bring in more foreign investors. How this will happen in the light of the recent world developments (terrorists' attacks, investors' scares, economic slowdown in the richest countries of Western Europe and Northern America) nobody has been prepared to answer. It seems that the local real estate companies aren't ready to change their passive attitude toward the western investors for more active in order to deal with the present situation.

Instead of trying to find out how to stimulate the foreign investment process in these difficult times we heard many optimistic news about the on-going residential and commercial projects in Bulgaria. Again some small positive developments (small only by western standards) were used to hide the lack of general prospects for real estate market growth.

* - CEREAN or Central European Real Estate Association Network was set on 10th June 1995 in Krakow (Poland). The main goal of the Association is to support the integration between the different countries in the region on the real estate market. Every year CEREAN hold a special conference in one of the member states. The next conference (2002) is expected to take place in Russia.

** - The cheapest 1 BR apartment in the capital city of Sofia costs more than $10 000. This represents almost 100 official average monthly salaries in the country. Given the fact that 50 percent of the household incomes go for food, it's almost impossible to save even for some very cheap residence.

--------------------

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