Unsurprisingly, property sales have been badly affected in Phuket, following the horrendous tragedy that took place on Boxing Day. However the immediate impact on the property market, will only last one year, according to Stephen O'Brien, managing director of the property agency Knight Frank Phuket.

Speaking in the Bangkok Post, O'Brien said: "All buyers remain eager to settle. I think most buyers see this as a one-off event, an act of God, and not a callous act of planned terrorism," he said. "Some of the other developers I have spoken to immediately after the incident have also received actual sales and reservation deposits paid in the aftermath. We will recover, but it will take time."

However O'Brien does feel that the long-term rental market may feel the first impact as those who were considering settling or retiring in Phuket may now change their mind in light of the recent disaster. "I would expect that the effect would only be short-term and we expect swift recovery in the first quarter of 2006," Mr O'Brien said.

Properties managed by Knight Frank Phuket have all remained intact, however a lack of daily utilities for now, remains a problem.

Prior to the accident, the number of tourists visiting southern Thailand was rising, despite government warnings of a possible terrorist attack.

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Polish cities on Shortlist.

The Polish cities of Wroclaw and Gorzów Wielkopolski, are amongst a selected few being considered for a EUR 700 million investment in a tyre production plant. Korean producer Hankook is considering locating a new plant in the Central Europe region, with destinations in Hungary and the Czech Republic also on the shortlist.

It is expected that that the chosen city will benefit from the creation of 2,000 new jobs. The name of the successfully selected city will be announced at the end of the first quarter.

Bulgarian Property Developments.

Properties in Bulgaria have proved extremely popular amongst worldwide real estate investors in recent years. Now Bulgarian Property Developments, which floated on the UK stock exchange for the first time yesterday, has more than doubled in value within 24-hours. The company's stock rose by 41% and now stands at 113.5p having listed at 50p yesterday.

Spanish Slowdown.

A recent report from the Spanish Valuation Society shows that the average price of a new home in Spain rose by 12.5% in 2004. Yet this is lower than 2003, when the average price of a new home rose by 15.8%. As a result, some experts now feel that demand for new properties in Spain has slowed down.

However due to continued demand, construction of new homes in Spain has trebled over the last ten years, from 222,300 to 688,000 properties. Since 1985, the price of new homes has risen seven times in Spain, on average by 10.8% per annum.

According to the latest Spanish Housing Ministry figures, for the third quarter of last year, average property prices across Spain rose by 17.3%.

US Foreign Interest To Drop in 2005.

According to an annual survey, conducted by Kinsley Associates, on behalf of members of the Washington DC-based Association of Foreign Investors in Real Estate (AFIRE), the US real estate market is losing some of its appeal amongst overseas investors. The survey concluded that the number of foreign investors buying property in America is likely to fall.

Last year US purchases made up 71% of their international acquisitions, however following the report, it is estimated that figure will fall to a round 55% this year. Other property investment opportunities in locations such as Japan, Eastern Europe and Australia are being cited as the main reason for the fall in US interest.

AFIRE chief executive James A. Fetgatter said: "According to our survey, by substantial margins, the US continues to rank both as the number one country for stable and secure real estate investments and the country offering the best opportunity for capital appreciation. It's just that in an increasingly global market, investors are open to exploring new opportunities."