Thoughts Over New Real Estate Developments

We read with some skepticism the reports in the local press regarding the numerous new large scale projects that have been announced by several developers and others. There seems to be some sort of a competition as to who will announce the larger and tallest buildings to be developed and almost every week we read the various announcements in the press. The ordinary height of a building and as a maximum, was up to now 8 floors. Suddenly we read reports about 30 floors and most recently another one of 40 floors height buildings. Various publications refer to a mixed development which includes shopping centers, offices, hotels and apartments, whereas others refer to the provision of hundreds nos of public parking, in addition to the needs of the project itself.Our skepticism emanates from the fact that are all these projects viable? If they are, do the developers have the funds to carry out these projects, which are in excess of what we have been used to so far and if yes, have they secured financing from banks who now look at development projects with a worrying eye? And if at the end all is well, who will buy all these New York style (admittedly from the artist impressions very attractive) projects.If we are to assume that the market will pick up in 2 years time, it will never be the same as at the golden years of 2006-2008 and in any case foreign demand is not particularly interested for city style developments, other than, to a small extent, in Limassol, which appears to attract the main percentage of Russian demand and others of the high end demand.Once and if all are positive these developments once they are completed and the projects are up and running, who will face the common expenses and running of the project problem? Very few projects are well managed not so much out of the indifference of the administrator, but as a result of the attitude of the occupiers. We seem to have an attitude problem, with the occupiers suspecting that the management is thieving them and the administrator cutting down on the quality of service in order to match income and expenses. For this size of projects, having numerous lifts, common parking, gardens, pools etc, one should expect an annual common expenses bill for a 2 bedroom apartment, which could reach around €300 p.m., whereas some services provided, such as health centers, which do not pay and thus they will need to be subsidized by the common expenses will shoot up the monthly bill (otherwise they will need to be open to the public and as such if this happens, it will not be private). We are all for these new ideas on paper, projects which will upgrade the development of the island and provide a number of landmarks, but the distance between the conceptual design and the execution/ smooth running of such projects/sales etc is very large, since such projects are untested and could be even dangerous for the developers during this difficult time of the global/local economy.At the end does one consider the traffic problems that these projects will create in particular the accessibility of these projects and especially during the rush hours? Do we have adequate infrastructure (in terms of access roads etc) to take these?We wish those daring developers all the best but just to be on the safe side, we suggest that they “light a candle” at their favorite saint, since they might find that his help will be needed!!