Real Estate Price Bubble and Its Impact in the Baltic States

The article analyses the problem of the real estate price bubble in the Baltic States. The definition of the real estate price bubble is discussed, the main reasons as well as bubble influencing fundamental and irrational factors and price bubble burst sequences to national economics are analysed. Based on the research model and developed by the authors, the practical research of the real estate market in the Baltic States was performed. Trends towards the real estate prices were researched and the influence of fundamental and irrational factors on the growth of the real estate prices was discussed. Research results proved the existence of the price bubble in the Baltic States real estate market during the period from 2004 to 2006. The influence of the real estate price bubble burst on the national economy of the Baltic States is discussed at the end of this article.  Article in Lithuanian