We said that Cyprus is particularly hard hit on real estate? A recent acquisition of a central commercial plot at Nicosia, off Makarios avenue, having an extent of approximately 2.000 sq.mts., was sold for a price/cost in excess of €10.000/sq.mt. The buyers, a French based firm, has imaginative plans how to develop this most attractive property. This unpredicted high price which took us by surprise especially during recession times, has proved what we have said all along, that is, it is primarily the touristic housing market and secondly the residential housing areas that have been affected and not commercial sites/properties. To this end the numerous incentives that are offered to land owners who wish to provide public use parking (and which incentives can increase the building density by 70% reaching from its present maximum of 220% the level of 350%-400% building density) is a point to be noted. Central large plots are much in demand, but this very high price will set a precedent for others who will be adopting a similar level independently whether their lot is comparative or not. It reminds us of the part exchange deal of 33% 15 years ago (City Plaza Nicosia) and the 50% part exchange at Pafos (Pafinia project) which set a precedent for other deals that followed.

Nicosia in particular has a special interest for central sites and to this end a number of large scale projects which are now under way (Chapo, Deloitte, PWC, the Governmental Theatre, Music Hall etc etc), will change drastically the Nicosia central area. There is a rush now to acquire central sites since the incentives that are now offered, will end by the year 2012 (although we suspect that they will be extended). The point is with all these thousands of added sq.meters of office and other space, as well as added visitors, which will visit the centre, they will definitely increase the traffic and accessibility problems. Yes we do urgently need modern public transport, but with the prevailing attitude of the locals (one man one car) we do not expect a solution soon. There are many ideas that are now thrown on the discussion table, including the provision of new buses, electric trams etc, but now with the Governmental cash in scarcity, we do not expect that anything will happen shortly. We will experience a new facelift of the Nicosia centre, but we dare say, keep away from it, if you are using the town during working hours. If you are an office user, opt for localities south of the Santa Rosa high street, where there is less congestion and more off street parking. Regrettably without proper public transport, we will experience traffic jams, which will be similar to the more developed cities and the way things are developing, we will soon need 1 hour driving distance from out of the centre to the Nicosia central area.

www.aloizou.com.cy

www.aloizou.ro

www.aloizou.ru

ala-HQ@aloizou.com.cy