Purchasing real estate in Cyprus is the dream of many foreigners. Some see it as an opportunity to start a new life in a new country, others want to use an apartment or a house in this paradise on the shores of the Mediterranean Sea as a vacation home, while others invest their savings to generate income from rentals or for future resale.
In contrast to most European countries and Middle Eastern states, Cyprus has demonstrated confident and stable development over the years. Perhaps that is why the island's popularity among investors remains high, the liquidity of Cypriot properties stays strong, and prices remain attractive.
Despite the difficulties faced by the real estate market in Cyprus today, the demand continues to grow, leading to increased competition. New residential and commercial complexes are emerging on the island, along with "young" developers willing to introduce innovative approaches to the construction sector, offering creative and high-quality projects to buyers.
Today, we will introduce you to one of them - Makespace Development Ltd.
This is a new but highly promising company based in Limassol.
Makespace Development Ltd consists of true professionals with many years of experience and numerous successful projects under their belt. Each employee of Makespace Development Ltd is focused on results and does everything possible to achieve them. Thanks to this, the team has successfully delivered turnkey large-scale residential and office complexes, created in collaboration with renowned international architects, engineers, and designers. Among them: White Square/White Gardens (ARA and Buro Happold), Polyanka/44 (John McAslan + Partners, Gillespies, AECOM), I’m Moscow (David Walker Architects, MLA+, AEDAS London), SREDA (Ricardo Bofill Taller Arquitectura).
Makespace Development Ltd appeared on the Cyprus real estate market a couple of years ago. Its founder and managing partner, Aslan Kipov, has been working in the real estate development field since 2002. He has been involved in major projects all over the world, from Russia to the USA. However, now the entrepreneur intends to explore and develop a new market: Cyprus - an island experiencing a construction boom and craving fresh ideas and unique projects.
Aslan kindly agreed to tell DOM about his brainchild, plans, and prospects for the future.
- Aslan, good day! Please tell us where you are from, where you studied, and how you entered the real estate sphere?
I am from Moscow. During my time in the 11th grade, I read Dreiser's "Trilogy of Desire" about the financier and developer Frank Cowperwood. Many years later, I realized that this work determined what I would do my whole life - finance and real estate development. While studying at the Financial Academy, I worked as an economist at the Moscow Export-Import Bank. In 1999, I won a competition for a two-year master's scholarship to study finance and management in the USA. In 2000, I interned at the Development Finance Agency of one of the states, which issued bonds to finance infrastructure and real estate construction. For three months, I did in America what Dreiser's "financier" did, who started with the development of public transport in Philadelphia. In 2001, I received a Master's degree in Finance and Management and returned to Moscow. In 2016-17, I studied at the University of Oxford in the Sustainable Urban Development program.
- An impressive list of educational institutions. And how many years have you been in construction?
I have been in real estate and development for 21 years. During this time, I have been involved in assessment, research, financial analysis, investment attraction, sale and lease of buildings, project design and construction management, tendering, land bank formation, marketing, negotiations with authorities and partners, joint venture establishment, and real estate management. The accumulated experience allows me to create projects from scratch - from finding a land plot and deciding what to build on it to exit the project through the sale of the created real estate.
— Could you tell us a bit about your previous work experience and the positions you held?
In 2002, I started working at the Moscow office of the international real estate agency Colliers as a transaction analyst for the British real estate fund FF&P, under the guidance of the senior partner of the Moscow office. The fund was acquiring new Class A office buildings with top international tenants. In 2003, I was appointed as the director of the appraisal and market research department, and also became a member of the board. During this time, I also obtained the CCIM designation. In 2005, I became one of the first employees of the Moscow office of the development company AIG/Lincoln, which had just entered the Russian market. As part of a team of experienced developers from the United States, I participated in the creation of the White Quarter business district in the "Tverskaya Zastava" area of Moscow. This district consisted of two business centers, White Square and White Gardens, which were sold for a record amount in the history of the Russian market — 1.75 billion dollars. I started as a project manager and eventually became a partner in the Russian office. In 2013, I joined the company PSN, which was part of one of the largest private financial-industrial groups in the country, where I was responsible for the development of residential and commercial real estate. I had a team of 150 specialists ranging from project managers to engineers and supervisors. The group's portfolio included 5 million square meters (in potential land bank). From 2013 to 2018, we designed and built projects such as I'm Moscow, Polyanka/44, SREDA residential complex, Domashniy residential complex, Grenada residential complex, Aerodom business center, and others. We built new neighborhoods and entire cities on the sites of former industrial zones. The scale and responsibility towards future residents and the city were such that I decided to enroll in the Sustainable Urban Development program at the University of Oxford (UK). Throughout 2016-2017, every two months, I traveled for a week to the campuses in Oxford and London, where we were taught by leading world experts in urbanism, city development, and global population trends. In 2018, I moved to Cyprus and founded the startup Makespace Development — a boutique development company where I could implement the experience and knowledge I had gained. The Cypriot market is distinct from Moscow, with its transparency, clear urban planning rules, minimal interference from city structures in the aesthetics of the project, the presence of numerous qualified architects with international education and experience, and a low entry barrier. Anyone can become a "developer" by having a land plot of 300-400 square meters. In Moscow, to be involved in development, one needs to be part of a system with significant resources.
— Name the most interesting projects you have been involved in.
I believe one of the most remarkable projects is the AIG/Lincoln business district, consisting of the office complexes White Square and White Gardens. The record sales price for this project (1.75 billion dollars) remains unmatched to this day. Working on this project under the guidance of world-class professionals, I evolved as a Developer. I can also mention the residential projects I'M and Polyanka/44. These are elite residential complexes located in the heart of Moscow, built with leading London architects. It was an incredible display of taste, quality, and respect for the city's history, surrounding architecture, and future residents.
— What type of real estate do you plan to develop in Cyprus and why?
We focus on building properties in which we have experience – residential properties of business and elite classes, as well as Class A office spaces. The real estate market is constantly evolving. The pandemic has significantly impacted the office space market, and it is undergoing changes. There were predictions that the office space market would permanently decline, with everyone working from home. However, that's not entirely true. Look at London's City; new giant office towers are being constructed, and they are being filled. In Vienna, they built a huge business district called Hauptbahnhof, and the vacancy rate there is nearly zero. The nature and organization of office spaces are changing; they are starting to function more like hotels, providing various services. We believe in the future of offices and plan to develop them but on new technological and management platforms. Profitable construction of affordable housing is feasible for those who have extensive land areas and their own construction capabilities (equipment and personnel). We are not part of that category, so we don't plan to venture into that segment.
— What is the main focus of your company's activities, and how many employees work there?
Makespace Development Ltd is a development company. We offer services related to managing the development process for our clients – investors and landowners. Development consists of five stages: land acquisition, design, construction, sales/leasing, and operation. We handle all five stages. Our permanent staff in Cyprus consists of 7 people, but we actively engage a large number of trusted specialists from various fields from around the world. For example, in our flagship project ARTSQUARE, we have 4 independent architects working together – a general architect, a landscape architect, an interior architect, and a decorator. Our principle is a stable core of quality and outsourcing. We do not strive for gigantism. Makespace was conceived as a development boutique, and we plan to maintain that identity – working on a small number of exceptional projects.
— What are your responsibilities within the company?
As the managing partner, I am involved in all areas of the company's activities. However, specialized departments such as finance, sales, legal matters, and construction are led by professionals in their respective fields. My primary focus is on the economics and profitability of projects, working with investors and partners, forming the land bank, creating the product with architects, branding, and marketing projects, and maintaining a creative and positive atmosphere within the company.
— Are there any corporate values in your company that all employees must adhere to?
Certainly! There are two. The first one comes from my mentor, a true leader and professional developer, Brian Patterson. "We all work towards one goal – to create the best product. Each person keeps this goal in focus and does everything in their power to achieve it." I think he took this from sports. At AIG/Lincoln, we had an incredibly healthy, creative, and united environment. No intrigue, no misleading objectives, and no "us versus them" mentality. The second value is from Mikhail Zhvanetsky (writer, satirist and performer of Jewish origin, best known for his shows targeting different aspects of the Soviet and post-Soviet everyday life): "Be more thorough, guys! We have the big picture; now, let's not overlook the details."
— Share the main principles on which your company's relationships with clients are built.
The main principle is to provide clients with "turnkey solutions" and to meet and exceed their expectations. We do not strictly follow the formula that "the customer is always right." Often, clients themselves are unsure of what they want or frequently change their preferences based on new experiences and circumstances. We operate like a high-class hotel, where everything is well-thought-out and fine-tuned, nothing irritates, everything is in its place, of high quality, and evokes only positive emotions. We call this "hidden luxury" – understated elegance. However, achieving this result requires meticulous work from many professionals.
— What technologies do you plan to use for building houses in Cyprus?
Cyprus has its unique characteristics that most people encounter upon arriving on the island. High electricity costs, cold in indoor spaces during winter months, humidity leading to mold and mildew, 330 sunny days a year, winter rains, extremely hot summer months, insects and wildlife, a large number of cars, and difficulty finding parking spaces are some of the challenges familiar to all who permanently reside in Cyprus. We know and take all these factors into account during the design and construction process. For example, we implement water-based underfloor heating in all rooms, have bathrooms with windows, and more. Our residential complexes are designed for those who live and work in Cyprus permanently, where children attend school and extracurricular activities, do homework at home, people go shopping by car, and relatives visit for weeks or months. All our apartments have hallways and spaces to hang outerwear in closets at the entrance, instead of carrying them into the bedroom. We incorporate numerous planning and technological "know-how" to address these challenges.
— As a developer, can you tell us what Cyprus lacks?
Firstly, active turnover of land plots. Cities look like the jaw of an old cow. The Cypriot tradition of preserving capital in land leads to the few plots that enter the market being offered at exorbitant prices. This leads to rising property prices and makes it unaffordable for people living and working in Cyprus. If there were an annual land tax like in other European countries and the USA, holding capital in urban wastelands for decades would be costly. Secondly, project financing from local banks based on clear rules. They got burned on real estate and struggled to clean up their balance sheets by selling portfolios of bad loans and foreclosed properties to funds. They don't want to take risks anymore. However, real estate is the most capital-intensive asset in the global economy, and without banks' involvement, the market will remain local. Thirdly, a well-thought-out comprehensive urban strategy. There's nothing wrong with building high-rise buildings, provided that urban mobility is developed, including public transportation, bicycle and pedestrian routes, public spaces, parks, squares, trees along streets, and mechanical multi-story parking. A skyscraper doesn't necessarily mean an increase in the number of cars. The current situation leads to the phenomenon known as "urban sprawl," where cities expand horizontally with a critical dependence on cars.
— Finally, share your plans for the near future.
Completing the construction of our flagship project, ARTSQUARE, on time and fully realizing everything we envisioned. We want its residents to love and take pride in it, with a waiting list for units, and no secondary market deals. Expanding our customer and partner base. Commencing the construction of office complexes in Limassol and Nicosia. Forming a land bank. And, of course, the most exciting part of development – continuing to work with architects and interior designers on new projects already in our portfolio – a romantic estate, an art deco-style skyscraper, a house in the clouds, a super-efficient rental complex, and more.
— Aslan, thank you so much for taking the time to share so many interesting details about yourself and Makespace Development Ltd! We wish you success, many exciting projects, and the successful achievement of your plans!
Thank you!
Available properties for sale in Art Square
Interested in real estate on the island? Visit the number one real estate agency in Cyprus, DOM! The agency's website features the largest property database in the country – more than 30,000 residential and commercial properties across the island. Choose and consult with professional brokers who will help you make the right choice!
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Желаю дальнейших успехов и процветания тебе и всей команде Makespace Development Ltd!