Cyfast, Quality in “affordable” housing JV in Cyprus

Financing from Marfin Laiki, future plans for Limassol

Two leading developer-contractors, Cyfast of Nicosia and Quality Group of Larnaca, have established a joint venture to build and market a small housing project on the outskirts of the capital.
CY-Q has 20 plots under development near the Nuevo Campo playground in Latsia, where as many as 40 “affordable” homes will be built with prices ranging from 249,000 to 320,000 euros, plus VAT. Some couples, especially first time buyers, are eligible to a refund on that rate.
The plots vary from 135 to 180 sq.m. and the houses can range from 164 to 220 sq.m.
“We have all reduced our costs and profit margins,” explained Savvas Kakos, President and CEO of Quality Group, adding that with the expertise of both companies and a lot of in-house work, the cost makes the final price more affordable to the buyer.
The joint venture has already presold 12 units and construction work will start in August or September, as soon as the necessary permits have been secured.
Marfin Laiki is offering a custom-made financing deal called “Housing for All” (Spiti Yia Olous) which has already been deployed in a similar Quality Group venture in Larnaca.
The financing terms include a mortgage of up to 80% of the value and interest-only paid in the first three years of a 40-year loan, starting from about 1130 euros a month.
Kakos said that there are future plans for CY-Q to expand to Limassol as well with similar projects.