“Zakaki” Limassol to become the most exclusive and affluent region in Cyprus
Located west of Limassol’s city centre, Zakaki has always been known as the undeveloped virgin territory, nestled with Citrus fruit trees, historically cultivated by the Cyprus Phassouri Plantation Company which has been producing a variety of fruits since 1933. This once uninhabited area is now attracting the super-rich as it evolves into a new high-class, swanky neighbourhood. The city centre of Limassol is undergoing rapid redevelopment of newly introduced luxury living high-rise residences and hotels, whereas Zakaki has chosen a more sustainable concept, with plans to flourish alternative family lifestyle. Shaping an environment of tranquility nature surrounded by lush greenery, fragrant citrus groves, eucalyptus trees, pink flamingos, and awaken to the delicate scent of the nearby Akrotiri Salt Lake, Zakaki’s newly planned private low-rise, exclusive residences are just a small part of the €2.5 billion that will be invested within this up and coming affluent area over the next 4 years. The landscape also provides a dynamic new impetus for the City of Dreams Mediterranean “Europes largest casino resort” which effectively paved the way for the actual implementation of significant other development projects in the area.
A band of super-rich foreign tycoons have already made their homes in Limassol and adopted citizenship in recent years lured by favourable tax regimes and easier business environment. Cyprus offers the fastest route to European Citizenship and this is one of the reasons we are seeing so many of the world’s elite making their home’s in Zakaki. This newly developed area is away from the noise and congestion – yet under five minute’s drive to the city centre, three minute’s drive from the largest marina in Cyprus ‘Limassol Marina’ which currently attracts on average 400,000 tourists per year. Only forty five minutes from the islands main international airport of Larnaca, thirty five minutes from Paphos airport, and two minutes from the Limassol new port complex, Europe’s largest which handles luxury cruise liners as well as container vessels, with expansions plans to become the main transit centre of the Mediterranean due to its unique location as a “bridge’’ between three continents of Europe, Asia and Africa.
Besides, it’s close walking proximity to Lady Miles Beach and Cyprus’s second largest shopping mall, the infrastructure and services it will offer, including a new road network, 18 hole golf course, world-class restaurants, bars, cafes, high-end brand designer village, have contributed to attract both local and foreign investors to the area.
The growing demand for high-end super luxury residential properties in Cyprus has resulted in higher rental yields for property – avg. 4.7% to 5.6% y-o-y.Local and international high-net worth investors are taking advantage of the robust economic growth, all contributing to the redevelopment of Zakaki area and is now expected to become a key international destination for luxury living and lifestyle in the Mediterranean.
After a three-and-a-half-year recession, Cyprus returned to growth in the first quarter of 2015 and began its journey of economic recovery, there began a snowball effect that increased the number of investments and developments in the country, particularly in Limassol. Due to low corporation tax and a skilled labour force, many international brands began to see Limassol as a place for lucrative business ventures and is now growing steadily and gaining a new high-class identity. The island nation’s economy is on track to grow, 2019 saw growth double the European Union average. The growth performance of Cyprus continues to exceed international expectations, while successive credit rating upgrades have attracted billions in global investments with significant inflow from the Far East Asian, Russia and Middle East, with more recent interest from the UK, USA, Africa, and India.
Recent talks converse future plans for new recognised schools, university, medical centre including many more amenities within close proximity of Zakaki. As with most redeveloping cities around the world, countries that are attracting foreign investors, locals are concerned that this may cause a ‘Ghost town’ - remain speculative investments rather than real homes and communities. This year alone, locals have started to see a freshly minted city, relocation of renowned corporations, opening of world class hotel brands, top restaurant, and also an increase in international residence, these factors have helped to encouraged and assure uncertainties; Limassol currently has a very high demand for luxury rental properties due to the popularity as it grows into the main business hub on the island. The new casino resort will provide up to 4000 new jobs, and ultimately new employment will balance with housing, avoiding the “bedroom community” disease that eroded suburbs all over the world.
Zakaki has already seen overwhelming sales of newly developed off-plan Luxury villas, residences and apartments from investors either seeking to obtain the strong Cypriot passport through the government’s naturalization program with a €2m investment; they are investors who aim, through their investment, to make a good profit, or are people who want to settle permanently on the island with their families due to the many advantages, whether it's security, the low taxation system, recent growth of businesses, or the exceptional climate.
This is just the beginning of Zakaki – “Watch this space”
Thankfully, the larger players within the real estate industry have not been affected during this current unfortunate Covid pandemic, client requests have been overwhelming. Over the past few weeks, during this unpredictable lock-down period, it has brought to light investors wanting the option to relocate with an alternative citizenship, somewhere safer and quality of life for their families. The Cyprus government have recently announced that construction will continue within the coming weeks, given confidence in achieving initial programme completion dates.
Published by Steven Yiannakou www.citrineestates.com