The French Housing Minister, Jean-Louis Borloo, has warned that residential property prices in France are to fall over the next two or three years, following several years of solid appreciation.
A report, prepared by the Housing Ministry, said: “Sale prices are now falling and the rise in rental prices seen in 2006 is the weakest since 1999.”
Hotel owners unable to sell on Black Sea coast
At the end of the summer season, a number of hotel owners located along Bulgaria's Black Sea coast are struggling to sell their property. The enormous amount of construction that has taken place in most of the resorts has had a negative affect on the hotel industry and is now having an impact on property prices.
Further supply of new hotels is in the pipeline but the number of successful sales being made is declining, according to Bulgarian newspaper Banker. Regardless of the location and the size of the hotels, average prices reached €840sqm during the summer season, while the price of apartments remained above €1000sqm.
Noise levels and pollution related to the intense construction works in resorts have become increasingly noticeable and this is believed to be putting-off foreign investors that are interested in purchasing a hotel.
Three new factories to be built in Wroclaw
A Polish firm called 3M announced last week that it will invest $50m in building three factories in Wroclaw, Poland. The three plants will produce: optical films for liquid crystal display (LCD) screens, adhesive materials, and orthodontic products.
3M spokeswoman Ilona Gajewska said: "The optical film factory, which will produce films that improve the image on electronic screens, is directly linked to the recent investment projects in Poland from LG-Philips and Sharp."
LG-Philips is building an LCD factory in Wroclaw, and Sharp has announced similar plans.
Production at the optical film plant is expected to begin in March or April, 2007 at a cost of $30m. Approximately 100 people will be employed there.
The two other factories will begin production in 2008.
Romania and Bulgaria to join the EU in January 2007
The European Commission President, Jose Manuel Barroso, has announced that both Romania and Bulgaria have made enough progress recently to allow them to join the European Union (EU).
However, both countries will be monitored to see how they are coping with reducing organised crime and corruption, and ensuring food safety and the proper use of EU funds.
Bulgaria 's Prime Minister said the move was the fall of the Berlin Wall for his nation.
Romanian PM Calin Tariceanu said his people should be proud of themselves but should not make the mistake of thinking that accession would mean all the country's problems would be solved.
The conditions are tougher than those imposed on previous new members and many believe these measures are intended both as a reassurance for EU citizens, only half of whom support further enlargement, and as a warning to Turkey and the Balkan nations still lobbying for EU membership.
Ronson to build 1,000 flats in Wroclaw
Ronson Development, a developer known up till now for projects on the Warsaw market, has bought two plots of land in Wroclaw, of a combined size of just under 10 acres, with the intention of building 500 flats on each site.
The plots are in the Krzyki district in the south of the city. The developer intends to build small multi-family developments and expects to secure all the necessary permits and begin construction work within the next 12 months.
Ronson Development first entered the Polish market in 2000. So far it has sold close to 1,000 flats from three developments in Warsaw and three other projects in the capital are currently under construction.
In total, Ronson Development owns a dozen or so plots of land, earmarked for residential investments in Warsaw, Poznan and Wroclaw.
Bulgarian Land to build complex in Kavarna
Bulgarian Land Development (BLD), the AIM listed Bulgarian residential property developer, has announced that it has bought a freehold site in Kavarna, on the Black Sea Coast, for €2.1m. When combined with seven other smaller adjacent sites recently purchased, the total cost of the site is €3.3m.
BLD will now seek planning permission to create a 100,000sqm holiday complex designed for the international market with an estimated gross sale value of €100m. Construction would be carried out in €40m phases.
The land for each phase will have direct access to the coast and to local infrastructure. The re-zoning planning process is expected to be completed in the summer of 2007.
The site is in the Balchik-Kavarna area. Three internationally designed golf courses are already under construction in this area and spa facilities are nearby. Local authority construction regulations mean that the area should not become overcrowded.
Ryanair offers to build Terminal 2 at Dublin Airport for €250m
Ryanair has written to the Dublin Airport Authority (DAA) offering to build a low cost second terminal at Dublin Airport at a cost of €250m.
The airline said this new facility will save the DAA the €610m they had proposed to spend on their Terminal 2, as well as saving the seven-year-old Pier C, which cost €150m, and the historic listed building, Corballis House.
Ryanair also confirmed that it would oppose the DAA's planned Terminal 2, which it said is ‘badly designed, in the wrong location, is five times more expensive than other similar terminal facilities in the UK and Europe, and has ballooned in cost from €170m, when first announced by the DAA in September 2005, to €750m when the DAA's plans were finally revealed in August 2006.’
Worldwide News
Property giants in £600m Cape Town deal
Property tycoons, Ian and Richard Livingstone have joined forces with property developer, Nakheel, and purchased the Victoria and Alfred Waterfront in South Africa’s Cape Town for around £600m.
Located between Table Mountain and Robben Island, the V&A Waterfront attracts in the region of 20m visitors per year and is one of South Africa’s leading tourist attractions.
The property partners have purchased over 200 acres of land, including the marina, hotels, shops, residential and industrial space. There are over 600,000 sq ft of shops and 900,000 sq ft of offices. It includes the luxury five-star Table Bay Hotel, as well as a working harbour, restaurants and shops and an aquarium.
There is already planning permission for a further three million sq ft of new space and the site is regarded by local property agents as ripe for a six-star beachfront hotel development and luxury apartments.
The involvement of Nakheel will trigger speculation that the companies may try to reclaim land from the sea to increase the size of the development.
Number of new-builds declining in the USA
The number of housing constructions in the USA fell by 6% in August to a seasonally adjusted annual rate of 1.665m units, according to the Commerce Department.
It means that the number of new homes being built has now fallen by 19.8% compared to the same time last year.
David Pressly, president of the National Association of Home Builders (NAHB) said: “Builders have been reporting a weakening in demand for some time and appropriately are cutting back on new supply in order to meet current market conditions and control their inventories.
“Many builders also are offering substantial incentives to bolster sales and limit cancellations, and with mortgage rates still very favourable, now is a good time to buy.”
Property market in Jordan goes from strength to strength
A recent report from Jordan’s Department of Lands and Survey, reveals that Jordan’s property market experienced up to 40% growth in 2005, during which time there were 17,847 apartments and 116,077 house and land transaction registered.
Non-Jordanians purchased US$ 212m worth of property, with 67% attributed to Iraqi’s who spent US$142m.
Rohan Marwaha, group development director, Cityscape Dubai commented: “With excess liquidity and exceptional returns, investors are focused on real estate throughout the region. Besides Iraqi investments, there is a trend developing for the GCC to invest in Jordan now, which represented 14 percent of total land sales in 2005, almost US$30m.”
It is estimated that some 500,000 Iraqis currently reside in Jordan, which in part is to do with the on-going troubles in Iraq. This influx has fuelled the property boom resulting in increased demand for apartments and office space.
Ali Kolaghassi, vice chairman and CEO of Saraya Holdings stated: “Jordan’s real estate market is very promising and has already grown exponentially since 2003. There is still great potential for high yields in the future.”
Developers compete for land in Pattaya
Demand for beachfront property in Pattaya, Thailand has increased on the back of news that Thailand's new Suvarnabhumi Airport will soon be open.
Chaiwat Charoensuk of the Tourism Authority of Thailand (TAT), said: "Developers are buying land to develop shopping malls, five-star hotels, and in a few years Pattaya will change its face."
