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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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Poland: Growing market, falling yields
Residential marketThe trend of significant property appreciation that began 4-5 years ago in Poland is keeping on track, with possible new gains in value for 2008 and the years ahead. From average levels below $1,000 per sq. meter in the early years 2000s, the prices are now exceeding $2,500. Only partly this trend is due to the devaluation of the U.S. dollar; the prices are steadily rising when denominated in Euro too. In the meantime, the number of building permits is too rising steadily since circa 2003/2004. On the other hand, the residential investment yields are falling dramatically across the country. After reaching their peak approximately 10 years ago, they are now barely visible, and the trends there aren't good. Given the relatively high residential rents (an average salary can barely pay the monthly rent for a large apartment for a family with children), the only option for many new polish families is to buy, which certainly explains at least partly the rising number of permits. On the other hand, however, the falling yields and the rising prices will ultimately put an insurmountable barrier to both investors and buyers. It seems that it won't happen in 2008, but nevertheless it should be expected sooner after rather than later.Commercial marketThe office part of the commercial market in Poland is booming. The market is largely concentrated in the capital city of Warsaw. The vacancy rates, a trend that has began roughly after the country's entry into the European Union in 2004, are close to zero, and the demand is growing with each year passing since. Circa 2004 the office rents in Warsaw are steadily rising, a trend that reversed the market slump in the late 1990s and in the early 2000s. On the negative side, like the residential market, the yields for investors are falling steadily. Here too, our forecasts are for a steady market in 2008, and possibly for couple of years after given the enormous demand. The retail part of the market goes now under the vogue of commercial centers, particularly malls, which are under construction across the country, but particularly in and around Warsaw. Poland like any latecomer has many more years of development in order to reach the West European average. Furthermore, the malls in Eastern Europe represent a fundamental change in the way people shop and interact. In fact, it confirms the end of the small peasantry like independent economic class. Like in the other market segments, the investment yields on the retail commercial market are falling too.
Poland country profile: --------------------
See also the directory of companies providing real estate services in, and general real estate information of Poland.
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