Located in one of Limassol’s prominent high-rise buildings – The Oval Business Center – the investment and real estate development holding Allea Group has managed to shake up Cyprus’ luxury real estate scene after announcing its new development in Limassol. Its upcoming flagship premium mixed-use project includes a 5* star hotel managed by an international operator, residential apartments and luxury villas. The other ambitious project is the Nilufar project in Paphos, which is expected to serve as a cultural and entertainment destination. Allea Group General Manager Anton Samokhvalov tells GOLD about the progress of the Group’s impressive projects and explains why they constitute a timeless investment opportunity.
By Artemis Constantinidou
1. Your flagship project in Limassol is currently under development. When do you expect it to be ready and what will it consist of?
We recently received the environmental permit for our upcoming flagship project, a 10-hectare family-oriented development, situated on a Blue Flag beach in a prime central location, that will comprise private residential apartments and villas within a gated community, and will also feature one of the first 5* hotels to be managed by an international hotel operator.
Construction is expected to begin soon with the hotel building and integrated serviced apartments. The hotel construction itself will be both, complex and innovative, built using cutting-edge sustainable technologies. The whole process requires great financial investment, time and effort and Allea Group is working methodically to resolve any issues step-by-step, in order to make its vision a reality.
The exclusive residences will also be an architectural feat, designed to rise up from the hotel’s East wing from the 8th to the 24th floor, offering 360-degree views of the Mediterranean Sea, the surrounding mountains and the coastline of the whole of Limassol.
The second phase of construction will follow to include a private gated community of bespoke villas located on the north side of the development, in a completely secure and controlled environment, offering residents the ultimate idyllic lifestyle. The resort’s concept is a rare example on the market where the quality of services available will be provided by an international 5* brand.
2. This project will be developed in Limassol whereas the Nilufar project will be located in the historic centre of Paphos. What was the thinking behind your choice of location in each case?
Both projects are certainly something new and very different to what already exists in Cyprus. We took the opportunity to carefully study both districts before planning each development.
Limassol is the ideal city to host such a unique family resort, thanks to its cosmopolitan vibe, optimal location between two airports, and natural surroundings. What’s more, the city is a thriving hub of business activity and the most developed financial centre on the island. We detected demand for high-end residential properties for permanent living (not just holiday homes) and it became evident that there is a lack of luxury beachfront residences in Limassol offering an elevated lifestyle and 5* branded hotel services.
Paphos, on the other hand, was selected because of its fascinating heritage and monuments, and in fact, Nilufar is inspired by the city’s historic character. The idyllic seaside town is a popular holiday destination, and we noticed that there is a considerable lack of high-quality entertainment options and gastronomic infrastructure.
3. How would you assess the present state of the global real estate industry? Has it managed to overcome the negative effects of the COVID-19 pandemic yet?
Although Covid-19 has had many negative effects on most industries, the luxury real estate industry has not been affected as such. On the contrary, there is great interest in residential properties, as a second home, for safety and quarantine purposes, and even, for medical tourism. Recent studies have found that 7 out of 10 HNWI believe that now is a good time to buy. Therefore, it is not a question of if they should buy, but rather what to buy with more attention given to the quality of layouts, the amount of space, the finishes and materials used, as well as the infrastructure and services within the community.
4. What is it that buyers of luxury residential and commercial properties are looking for when they decide to invest in one? Why do they choose Cyprus?
HNWI are seeking to invest in modern, discreet, and well-connected luxury residential properties around the world as a reliable long-term investment and as a second home. Now, more than ever, they are interested in design and how it contributes to their physical and mental wellbeing, and the availability of wellness facilities within the property. As such, in our opinion, developers should now focus on holistic design solutions, with an emphasis on sustainability, and supporting the residents’ need for a healthy and active lifestyle.
Cyprus is a beautiful island boasting a high quality of life and benefits from a strategic location and a flourishing business environment with first-class infrastructure and services, making it the ultimate destination for foreign investors. Purchasing a property in Cyprus is both, an ideal business investment and an investment in a fine lifestyle and excellent living conditions.
5. Given the termination of the Cyprus Investment Programme (CIP) and the bad publicity it generated, what other incentives and strategies should Cyprus introduce in order to attract more foreign investment?
Well-designed beachfront assets in prime locations with 5* hotel services will always be in high demand as they constitute timeless investment opportunities. Additionally, the Cyprus government has taken many steps and made great efforts to improve the island’s business climate, offering unprecedented corporate tax incentives and an ideal environment in which to invest, hence having succeeded in establishing rapidly growing IT, fintech and games hubs in the country.
6. Allea Group boasts an impressive portfolio of projects in Europe, including several in Austria. How does this location compare to Cyprus as regards to the real estate industry?
We have always been interested in discovering new investment opportunities in new markets. Our projects in Austria have been carefully chosen by our investment team. We aim for mid yield projects in central, historic locations in central and southern Europe with strong capitalization appreciation potential. Our portfolio is built with specific pillars in mind, such as geographical diversification, market segment, investment bracket, and target return. We do not compare our locations, but instead, we choose them wisely based on our criteria. The destinations chosen also enable us to provide our residents with the opportunity to engage with nature, contributing to their overall wellbeing.
7. How do you expect foreign investments of this calibre to boost the national economy and how do you see Cyprus developing over the next decade?
Times will not be easy, but again, we view the demand for residential real estate and primary located beachfront projects with hotel services as a timeless and guaranteed investment.