Third Sofia underground line to be partially over-ground
The third line of the Sofia underground will be mainly over-ground, Stolichen Metropoliten (Metropolitan Sofia) executive director Stoyan Bratoev has reportedly said.
Unlike the other two underground lines, the new line will be light metro and will connect the Knyazhevo residential district in the southwest of the capital to the Levski residential district in the northeastern part of the city.
The line will cross the existing first line and the future second line of the underground at Sofia University’s main building, and the National Palace of Culture. Along Tsar Boris III Boulevard the line will appear over-ground several times. The line will then become underground in the city centre. The total route will be 20km long.
More multi-national companies moving to Romania
Romania ’s property market is set to receive a considerable boost in 2008 according to Anglo-Romanian Development (ARD) following the arrival of two more multi-national companies. Nokia, the world’s largest mobile phone producer, and Ford both announced they were setting up significant operations in Romania last year. Additionally, in the last few days Nokia has announced plans to move all production from its German plant over to its new base in Cluj, Romania creating thousands of new jobs for Romanian workers.
Alex Pintea, managing director at ARD, comments: “ Romania has seen an exciting number of international companies move in over the last few years. Nokia and Ford have joined the likes of IBM, Vodafone, Microsoft, Smith Kline Beecham and Oracle. These companies are investing billions of pounds and creating thousands of new jobs which are having a very positive effect on the country’s property market.”
Nokia is due to start production at its manufacturing plant and research and development centre in Cluj-Napoca in February, eventually employing up to 3,500 workers at the plant.
Meanwhile, Ford Motor Company bought an existing plant in Craiova in the South West of Romania at the end of last year and is now in the process of modernising its new base, which is expected to create an additional 3,000 jobs in the local area.
New factory and hotel being set up in Lodz, Poland
Press-Glas intends to invest €11m in the construction of a double-pane insulated window factory in the Lodz Special Economic Zone. The plant will be built on a 6 hectare site and will initially employ 150 people. However, the investor has announced plans to spend a further €10m on expanding the plant over the next two years and by 2010 the workforce is expected to rise to 600.
Meanwhile, the Grand Hotel in Lodz, which was recently bought for €20m, is to be completely renovated and converted into a six-star hotel. The investors have set aside a further €27m for the up-grade of the hotel, which will include a swimming pool and a glass-roofed courtyard. The old theatre hall, which formed part of the old building, will be converted into a conference centre. In addition, the number of rooms will be increased from 160 at present to 200 by raising and leveling the height of the building. Finally, a two-level underground parking garage will be built under Hotelowa Street.
FDI into Bulgaria expected to grow by 10% this year to €5.8bn
Head of the Bulgarian Investment Agency, Stoyan Stalev, has announced that the agency expects foreign direct investment (FDI) to grow by 10% in 2008 after a surge of 20 to €5.3bn in 2007.
About 60% of 2008 FDI (€3.5bn) is expected by the agency to be directed into residential, commercial or vocational real estate, (holiday homes). The 2007 foreign investment ranking was led by the UK, owing to real estate investments financed by individuals.
Changes in legislation introduced in September 2007 means that the Bulgarian government will no longer support FDI in real estate, conventional energy and energy-intensive production. The new law will allow for indirect financial support in the form of preferential administrative services. However, the government is now targeting FDI in manufacturing, renewable energy, IT, research, education and healthcare services.
Worldwide News
$580bn to be spent on 900 new hotels in the Middle East
New research entitled ‘The Middle East Industry Outlook 2020’ has identified plans to invest at least $580bn in over 900 hotels across the Middle East from Syria to Oman. The study found projected construction costs for the most recent announcements from over 72 developers, investors and operators vary from $10,000 to $5.71m per room.
The research is an update of the study by Fast Future and Global Futures and Foresight (GFF) on the Future of Travel and Tourism in the Middle East and is sponsored by the Hotel Show, Siraj Capital, Nakheel and Silverjet.
Across the Middle East, a massive $3.63trn is being invested in hotels, leisure projects, aviation developments, cruise lines, tourism promotion and supporting infrastructure, according to the preliminary results of a soon-to-be published research program. The study covers 13 Middle Eastern countries for the period to 2020 and will be published in full at the Hotel Show 2008, which is scheduled to take place at the Dubai International Exhibition Centre on June 8-10, 2008.
The 19 largest airlines in the region are expected to spend at least $143bn adding 876 planes to their fleets in an effort to bring more tourists and business to the Middle East. The largest buyers in terms of aircraft purchased and total investment are expected to be Emirates - 245 aircraft at $60bn - and Qatar Airways - 150 planes for $52bn.
The study also looked at 19 major airports and identified a total planned investment of $39bn with the 10 largest airports expecting to add capacity for at least 320m more passengers.
The two largest spending airports were Dubai World Central (Al-Maktoum International) and Saudi Arabia’s King Abdul Aziz International at Jeddah, both of which are investing around $8bn. Following these investments, Dubai World Central would be the region’s largest airport with capacity for 120m passengers, followed by Qatar’s Doha International which is targeting a capacity of 93m.
The research also looks at the fast growing cruise market and focuses on 12 major cruise lines that between them operate 86 ships in the region. The largest of these operators currently are Royal Caribbean International and Holland America with 21 and 14 ships respectively. Eight of the cruise lines studied, have plans for further investment and between them they are expected to add at least another 18 ships to their fleets at a minimum cost of $8bn.
Fall in Japanese construction cuts growth prospects
New housing starts in Japan fell in November 2007 for the fifth month in a row, due to increased legislation for developers, which was prompted by a scandal over unsafe buildings.
The construction slowdown is renewing concerns about Japan’s growth outlook and is expected to have a negative affect on the country’s economic performance in Q4 2007 and Q1 2008. The central bank has kept interest rates on hold since it raised them by a quarter percentage point to 0.5% in February 2007.
Officials at the Land Ministry, criticised by construction firms for their handling of the new regulations that added to delays in work on new buildings, said they expect a gradual recovery in housing investment. But economists say the effect on overall economic growth will likely be felt for a while.
Housing starts fell 27% in November from a year earlier, government data showed, against a 35% annual drop for October and a record 44% drop for the year to September.
The government introduced the stricter building regulations in June last year after a scandal in which data on buildings’ strength was falsified, leaving scores of apartments and hotels vulnerable to even moderate earthquakes.
Egyptian development offering lifetime rental yield of 7%
GEM Estates is offering investors the opportunity to purchase their own freehold home set within the five-star Pyramisa Beach Resort Hotel in Sahl Hasheesh, Hurghada, Egypt. Prices start at £39,950 and the company is offering a guaranteed lifetime rental income of 7% per annum (about £2,800).
Open since April 2007, GEM reports that occupancy rates are in excess of 85%. The Pyramisa Beach Resort comprises studio and one and two bedroom suites set on shoreline. Facilities at the resort include five restaurants, swimming pools, a beach bar and a health & beauty club, and prospective purchasers can ‘try before they buy’ as the initial 10% payment (£3,995 for a studio) is refundable until private purchase contract.
Samuel Mond at GEM Estates in Egypt says: “Pyramisa Beach Resort is a property investment to silence the sceptics. The hotel is an ongoing concern and a lifetime of guaranteed rental income at a healthy rate keeps the books balanced. Service charges are £5sqm per annum so there are no hidden costs. Additionally a 60% mortgage is available for seven years at a fixed rate of 7.5% and, just to sweeten the deal, there is a guaranteed buyback after one year of ownership on all units at the initial purchase price. Throw in capital appreciation at rates of around 15-20% per annum and this is a serious investment.”
Pyramisa Hotels is a private hotel chain in Egypt and listed on the Egyptian stock market. Purchasers within the Sahl Hasheesh hotel have the right to up to eight weeks private use per year, plus you can go all-inclusive for €35 per person per day. There is also the option to exchange part of that usage in any of the Pyramisa resorts, with six to choose from including Cairo, Luxor and Sharm el Sheikh.
Abu Dhabi faces shortage of 20,000 housing units
A study by the Abu Dhabi Chamber of Commerce and Industry has found that the emirate could face a shortage of at least 20,000 housing units by the end of the year, according to local reports.
The study found that the shortage has become more evident as the population of Abu Dhabi has doubled over the past few years. The housing shortage is expected to push up inflation and raise the cost of living in the emirate.
