Architectural limbo

In Poland, financing problems and low demand have already called into question the future of at least three spectacular high-rise projects whose construction was announced within the last few years. Completion of many more will probably be delayed.

Source: www.urbanity.pl

Warsaw too has recently seen a great deal of speculation about the future of one of its arguably best-recognized skyscraper projects – the Daniel Libeskind-designed Złota 44 residential tower. Concern over the financial situation of developer Orco Property Group has raised questions about the building’s chances of being completed, especially since, according to some sources, construction on the tower has already been halted. Orco has admitted that construction has slowed, but denies that work has stopped altogether.

“Poland remains one of the key markets for Orco Property Group, which is a guarantee that the Warsaw investments are a priority for the company. When it comes to the Złota 44 project, we are at the stage of renegotiating financing,” said Beata Łosiak, PR and event manager at Orco Poland. She added that the company’s management was making every effort to ensure the building’s completion according to schedule, in 2010.

The Lilium Towers scheme is on hold for now Courtesy of Zaha Hadid

Selling dreams

Real estate market analysts point out that some of the spectacular schemes now being put on hold involved miscalculations from the very beginning. The economic crisis, therefore, merely exacerbated those initial miscalculations.

According to Mikołaj Martynuska, residential department director at real estate consultancy CB Richard Ellis, a major problem with residential skyscrapers is that there has never actually been large demand for them; many projects were conceived by financiers and designed with quick profits and land speculation in mind.

“Projects selling the dream of living in, or actually above, the clouds, sell very well on paper,” said Martynuska. He added that experimentation with ever bolder architecture and the ambition of various cities to have the tallest and the glitziest structures was often the driving force behind high-rise projects in places such as Dubai and Russia.

“The Far East is probably the only place where residential towers are economically justified due to the high population density,” said Martynuska. He stressed, however, that the quality of skyscraper projects there was often very poor.