Self-catering holiday homes in the Sardinian town of Alghero are attracting over five times more enquiries than the average property advertised on holidaylettings.co.uk. The company has around 130 homes listed in Sardinia put demand is exceeding supply at the moment.
According to the company, other locations over-subscribed and under-invested include Gran Canaria, Malta, Ibiza and Marrakech, all of which are attracting around double the average amount of enquiries from holidaymakers.
New district being constructed in Krakow
The construction of a new multi-functional retail center has started at Bonarka City Center in the post-industrial area of the Podgórze district of Krakow, situated between the city’s key transportation routes.
The Bonarka City Center will add modern character to the area by converting it into a resident-friendly environment, free from industrial inconveniences and pollution. The project, on a total area of around 19 hectares, will cost around €500m.
The new site will be completed in 3 stages. In the first one, retail, service and entertainment centres will be constructed at a total value of €300m. In stages two and three, high-class office and residential buildings will be erected.
“We are positive that Bonarka City Center will enliven this part of Krakow. The modern architectural design, the nice, clean and safe environment provides a Royal Place in the Royal City of Krakow”, said Jacek Wachowicz, President of TriGranit Polska, which is building the development.
The development - taking advantage of natural landscape, the surrounding park and artificial ponds – will create around 3,000 new job opportunities. The glass-roof buildings will have some 250 retail units, with well known international and national brands. The projected opening ceremony for the first phase is scheduled to be in the second half of 2009.
TriGranit now has a pipeline of projects valued at over €8.5bn.
Moscow and Istanbul rated property markets with most potential
Moscow and Istanbul were ranked first and second, respectively, as this year’s top real estate markets in Europe for both investment and development prospects, according to the real estate forecast, ‘Emerging Trends in Real Estate Europe 2008’, which has just been published by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP.
The report covers 27 markets in countries throughout Europe and is based on surveys and interviews with nearly 500 of the industry’s leading authorities.
Hamburg and Munich held the third and fourth spots as top investment markets, switching places from last year. Paris, which has held the top investment rating in previous years, slipped slightly, taking fifth place for investment prospects and sixth place for development prospects. According to the report, the change around at the top of the list suggests a desire by industry professionals to branch out of ‘old European’ cities and ‘investigate new markets’.
One of the sharpest rating drops was London, a long-time favourite that fell to 15th place for investment prospects and 13th place for development prospects. The report states that London, more than other markets in the report, is experiencing declining economic conditions similar to those in the US, including a drop in consumer spending, falling house prices, a rise in personal debt, and turmoil in the financial sector.
“Without question, Europe is facing a bumpier ride this year than the last few years. However we are seeing a lot of guarded optimism”, said Richard Rosan, president of ULI Worldwide.
Construction of second metro line put on hold in Sofia
A request has been made to annul the tender for the construction of the second line of Sofia’s metro network because of the high prices received from bidders, Sofia’s deputy mayor for transport Velizar Stoilov told local press.
However, the final decision lies with an ad hoc commission, which includes representatives from the city hall and from the finance and transport ministries. The commission could decide to either negotiate down the price with the bidders or to start a new tender.
“The best thing to do and what we’ll probably do is to set up a new tender”, said Stoilov.
The second line of Sofia’s metro will link the Lozenets district with the centre of the capital and from there it will go out to the Ilientsi district, with a total length of 18km and 15 stations. The stretch for which the tender was called is 6.4km-long and has seven stations, linking Nadezhda district with Cherni Vruh Boulevard in Lozenets district.
Sofia 's municipality simply could not afford any of the prices submitted, which ranged from €56-65m per km. This compares to the €27m per km that a Japanese company is currently being paid to build the first metro line to Mladost neighbourhood.
The European fund for regional development has granted €185m for the construction of the second metro line, with the Sofia city hall allocating another €35m in its budget. The constriction of the stretch between Nadezhda borough and Cherni Vruh Blvd. should start construction this spring and finish in 2011.
Worldwide News
Kuwait plans to build new rail and metro network
The Kuwaiti government plans to build an $11bn rail network, including a metro system for its capital Kuwait City, according to officials.
The 245km line will run from the country’s northern border with Iraq to the frontier with Saudi Arabia in the south. The service will also provide links to the main airport and port, according to the chairman of the Kuwait Overland Transport Union.
If plans go ahead, half of the new network will be financed by the government. Plans for the project are expected to be given the full go-ahead in May, with construction scheduled to start in 2009 and completion in 2017.
Indonesia to build $400m airport rail link
Indonesia has announced plans to build a $400m rail link between Jakarta and Soekarno-Hatta International Airport.
Work on the project, part of a government initiative to improve infrastructure in the capital, is expected to begin in the first half of 2008.
PT RaiLink is reported to still be working out the financing details but around 70% of the cost is expected to be financed using bank loans.
The 33km link should be completed in the third quarter of 2009.
Singapore to double the size of its rail network
Singapore ’s Ministry of Transport is to spend S$20bn (£7.1bn) to extend the city’s rail network. The investment would double the network’s length from 138km to 278km by 2020, Transport Minister Raymond Lim told press.
The density of Singapore’s rail network will increase by 60% as a result, from 31km to 51km per million in population terms by 2020, a comparable level to cities like New York and London, said Lim.
A new line will also connect the city centre to eastern parts of the island, adding 48km to the rail network by 2018.
FDI in Malaysia up 69% in 2007 to almost $14bn
Foreign direct investment (FDI) into Malaysia jumped 69% last year to $13.7bn, according to the country’s Trade Minister Rafidah Aziz. The figures were dominated by manufacturing investment but included, for the first time, investment in services, an indicator that the country is developing a skilled ‘white collar’ workforce. .
The government approved $10.4bn in FDI in manufacturing in 2007, up around 65%, while for services it approved FDI of $3.4bn last year, an increase of 80%.
Rafidah did not give many details on individual investments but said that German solar-cell manufacturer Q-Cells AG had been approved to build a new plant in Malaysia at a cost of more than $300m.
Malaysia , which has been attracting foreign manufacturers since the 1970s, is now facing much stiffer competition from other Asian countries like India, China and Vietnam.
