Stable commercial property returns for Portugal

Despite a testing year for Portugal's economy, commercial property in the country delivered total returns of 10.5% in 2005, according to recent data compiled by Imometrica and IPD.

Aided by rental growth of 3.1%, the retail sector, which returned 12.7% overall, was the best-performing sector. Offices returned 7%, while industrials returned 6.5%.

Flood in to Balkan States

Hundreds of homes in the Balkan states of Serbia, Bulgaria and Romania have been flooded by the Danube, caused by melting snow and heavy rain. In actual fact, the flood has now even reached the river's delta in Ukraine.

However, the extent of the damage caused by the floods, are not considered to be on par with the floods of 2002 and 2005 in the region, when dozens of people were killed, farmland was damaged as well as infrastructure, while the local economies suffered huge damage.

"We must not relive the nightmare of last year," Romanian Interior Minister Vasile Blaga said.

Fear for Euro Zone housing markets

Euro Zone housing markets are at risk of overheating according to Central Bank Chief economist, Otmar Issing, who cites a rise in lending figures as a danger to price stability.

Brits to prosper from Russia's regeneration plans

British companies are set to profit from the multibillion-pound Public Private Partnership (PPP) programme which is helping to rebuild Russia's dilapidated infrastructure.

Most of the construction contracts are expected to be awarded to British building firms such as Balfour Beatty and Jarvis. The Kremlin has already approached the two over bids for an £8bn contract to build a high-speed motorway linking Moscow and St Petersburg.

It is believed that as many as twenty similar deals are being considered for this year alone as Russia seeks to thoroughly redevelop its dilapidated infrastructure networks using PPPs. This could lead to a possible total contract value of over £50bn, which would make this the largest PPP programme in the world.

Evgeni Sidorenko, a partner at Ernst & Young, said: “It’s the biggest deal of its kind in the world.”

Residential prices in Varna catching-up

Residential property prices in the Black Sea city of Varna are catching up with Sofia according to fresh data provided by the Bulgarian National Property Association.

Sale prices in the residential areas of Varna range from €350 to €1000 per sq. m. While in Sofia, the southern district of Ivan Vazov is the most expensive region for housing, with an average price of €950/m2.

A recent report conducted by Colliers International Bulgaria showed that sale prices in prime residential areas remained in the range of €820 - €1,650 per sq. m in the second half of 2005.