Poland plans €30bn budget for road improvements

Budget airlines targeting Bulgaria

Spain warned again over land-grab law

Pakistani government give Emaar the go-ahead

Largest airport in South East Asia opened

Commercial property undeterred by rate increase

Capital growth slows in New Zealand

Poland plans €30bn budget for road improvements

Between 2007 and 2013, the Polish government plans to spend €30bn on implementing its road and motorway construction programme, Jerzy Polaczek, Poland’s transport minister, recently confirmed. The cash is to come from domestic sources, EU funds and international financial institutions.

Mr Polaczek said the funds will be used to implement a six-year programme and will pay for the construction of around 1,200km of motorway, 1,600km of express roads, and the modernisation of 1,000km of roads annually. By the end of 2013, the country should have a total of 1,800km of express roads, 1,729km of motorway, and 75% of all other national roads should have been upgraded.

Budget airlines targeting Bulgaria

A number of low-cost airlines will start operating on Bulgaria’s market in a few months. Four low-cost companies have already declared their intention to start flying to Bulgaria after 1 January 2007 when the country joins the EU and the aviation market will be liberalised.

Italian firm Myair announced on 10 October that it will fly from Bologna in Italy to Sofia and Ireland’s Ryanair, the UK’s Easy Jet and Germany’s German Wings have already presented a flight schedule to Sofia airport. A number of air companies have also applied to fly to Bulgaria’s Bourgas airport.

Low-cost companies’ access to Bulgaria was stopped in the past few years in a bid to strengthen Bulgaria’s national flag carrier Bulgaria Air.

Currently only two low-cost companies fly to Bulgaria but they land at remote airports and the flight times are inconvenient.

Spain warned again over land-grab law

Brussels have issued their second ultimatum to Spain over the so-called ‘land grab’ law. The law, which was introduced in 1994, allows developers to compulsorily purchase homes and re-designate for rural land for urban development.

The law was initially introduced to prevent developers from holding on rural land until the price appreciated. However, local Spanish property owners, most notably in Valencia, claim that the law is being manipulated by developers who influence local authorities to reclassify rural land as 'urban.'

The European Union says that it will take Spain to the European Court of Justice if does not amend the law within two months.

Pakistani government give Emaar the go-ahead

The Pakistani islands of Buddo and Bundal, located near Karachi are set to receive enormous development over the next 13 years. The Pakistani government has given developer Emaar permission to construct thousands of residential units and masses of commercial space and high-end recreation and tourist facilities including theme parks. The project is reportedly worth over £23m.

Ashfaque Hassan Khan, an aide to the Pakistani government, said: "We want to build it because it will create new jobs, bring in investment, create new housing and a new city.”

Largest airport in South East Asia opened

Thailand 's new £2.5bn Suvarnabhumi International airport, located to the east of Bangkok has officially been opened.

The airport which is now the largest in South-East Asia has the capacity to handle some 45m passengers each year.

Pensuda Priaram, the governor of Thailand's tourist board, said: “The long-awaited opening of Suvarnabhumi is one of the most important landmarks in the history of Thai travel and tourism.

Commercial property undeterred by rate increase

The recent 0.5% interest rate hike in South Africa is unlikely to have a huge effect on the country's commercial property market.

Property pundits say the market was expecting the hike and that it had been priced in. But future hikes may have a detrimental effect on prices.

David Green, MD of office and industrial property brokers Pace Property Group, said: "We would anticipate that initial yields on which properties are valued would rise, which implies that property values decline. To some extent the increase in interest rates was anticipated and therefore the property values are currently indicative of interest rate increases, so we don't anticipate that the last interest rate will negatively affect property prices."

South African interest rates currently now stand at 8.5%.

Capital growth slows in New Zealand

Property price appreciation in New Zealand slowed for the eighth consecutive month, according to a recent report.

Quotable Value reveals that the average national price for the three months to September was $344,748, 1.2% higher than the $340,473 average recorded for the previous quarter. Annually, national average property prices are 10.4% higher in the latest quarter compared with the same period in 2005.

A strong rise in lending figures suggests that property prices may soon rise again.