Price of oil and French properties of concern to Noyer
Bank of France governor Christian Noyer has stressed concern at the high level of oil prices and French house price inflation.
Noyer said: "The increase in the price of oil is bad for the world economy."
French property prices "cannot continue at this rate because it would eventually hit the solvency of households and lead to a reversal in the market", he added.
Land law may affect Spanish property prices
New proposed Spanish land laws could see average residential property prices in the country rise by as much as 10%, according to Spanish property developers.
The Spanish Government intends to introduce new legislation that proposes that developers submit between 15-20% of land which has been classified for urban use. The Government believes that this will help to reduce Spanish property prices. But the Association of Spanish Property Developers (APCE) believes that the new land law will have the opposite effect, as the additional financial costs will simply be passed onto buyers.
Developer set to enter Romania
Property developer Engel East Europe N.V. is reportedly negotiating a stake in a planned residential development in Romania, involving the construction of several thousand new residential units in Romania.
Executive chairman Jacob Engel said: "We are delighted to announce this latest development project, which we believe is one of the largest projects in Romania with projected scope of sales of several hundred million Euros.
"Entering Romania - a promising market - is a result of our long involvement in the CEE residential property market and our intense analysis of the potential markets in the region."
Bulgaria starts building new ski resort
A new ski resort is to be built close to the south western Bulgarian city of Blagoevgrad.
On 25 July, the city's Mayor Lazar Prichkapov helped to start construction of the ski centre, which is located in the Kartala area, about twenty kilometres from Blagoevgrad.
The centre will have over 30km of ski tracks, with ski lifts and other facilities. Several hotels will be built with over 1,500 beds. In order for the resort to function, however, the municipality will have to contribute around €600,000, for improving the water supply and sewage system. The investment would be well worth it, locals believe, as once the resort is up and running it could quickly turn into a major tourist destination.
Linstow plans a €150m mega-mall for Riga
Linstow Center Management has announced plans to build the largest shopping park in the Baltics. Located in the suburb of Babite, near Riga, the mall will cost some €150m to build.
Bourgas attracting twice as many visitors as Sofia
The airport in the coastal city of Bourgas, Bulgaria, has registered a record number of passengers since the start of the summer season.
On 18 July, the airport served 155 flights. The number of passengers that used the terminals of the airport on the same day reached 24,236. During the busiest hour 37 passengers checked in every minute and 30 airplanes awaited landing or departure. So far the airport has managed to deal with the traffic without any delays.
During June, Bourgas airport served 335,255 passengers, while Sofia International Airport served around that half that amount during the same period (186,397 people).
Hitachi to open new plant in Czech Republic
The Japanese company Hitachi confirmed its intention to acquire a site in the Triangle industrial zone and to establish a company in the Czech Republic with the purpose of manufacturing flat-panel televisions. The decision on the plant is subject to ongoing discussions with the Czech Government and regional authorities on the supply of labour and certain other conditions. The plant could employ up to 2,000 people in the Zatec area, and the investment of around $117m would be one of the largest Japanese investments in the Czech Republic.
Hitachi anticipates that by 2008 demand for flat-panel televisions will increase in Europe to 20m units annually in connection with the expansion of digital television broadcasting. Some improvements to the transportation infrastructure, including the completion of the E7 highway, will also be needed in the near future.
Credit boom in Poland continues
Polish Banks have agreed to issue 99,000 home loans, amounting to around €3.3bn, between January and May 2006.
This represents a 46% increases on the amount lent during the same period last year, according to the Polish Banking Association, Zwiazek Banków Polskich. The average value of a mortgage in May 2006 was close to €35,739, while in 2002 the figure stood at €15,301.
Warsaw North bridge to be built within four years
Warsaw city council announced on 26 July that a tender for the design and construction of the North Bridge has been issued. The bridge, which will cross the Wisla River and link Modlinska and Polkowa in the northern part of Warsaw, will be around 830 meters long and 45 meters wide and will support a road, a tramway and a cycle-path.
The winning proposal will be selected in October 2006, and the project is likely to take 4 years to complete.
Worldwide News
Property market set to take-off in Libya
New property ownership laws are set to see Libya relax restrictions on foreign buyers in an attempt to attract foreign investment and bolster the country's property market.
Reports suggest that a number of foreign developers have already entered into negotiations with the Libyan government over tourism and new residential developments.
Office boom in Brisbane on the agenda
A tight office market in Brisbane, Australia, resulting in surging rents and plunging vacancy rates are set to cause a frenzy of speculative building, according to recent reports.
Andrew Harper at Cornerstone Properties said: "We've been waiting a long time - 16 years - for it to return to a landlord's market."
Recent research by Jones Lang LaSalle (JLL) revels that office rents in Brisbane, rose by 21.9% over the past year.
The Property Council of Australia's office market report said the Brisbane CBD vacancy rate was 3.5% during December 2005, but JLL said it has fallen since then.
Rising urban Chinese property prices
Average property prices in China's inner-cities rose by 5.8% in June 2006, compared to the same time a year earlier, according to a survey by China's top planning agency.
Property prices in China's seventy cities rose in June by 0.7%, compared to the month prior, reports the National Development and Reform Commission.
roperty prices appreciated fastest in the city of Shenzhen, located south of China, up 14.6% (both residential and commercial). Beijing had a 10.1% rise in prices.
