Inside the model

10% road deduction on non-parcelled plots, plus the statutory stepped public-green deduction.

When a plot is not yet parcelled, 10% of gross area is deducted for public roads (plus the statutory stepped public-green deduction). This reflects the typical Cyprus planning outcome; parcelled plots carry no deductions.

The building coefficient sets the legal density area. Apartments lose 7% of that density to circulation before it becomes internal area; houses lose none. Covered verandas — which don't count against the coefficient — then add 25% on apartments and 20% on houses, giving the net sellable area (NSA) that determines the unit count and revenue. Construction is priced on gross floor area (GFA): NSA equals GFA for houses, while apartments build shared cores and corridors, so GFA = NSA ÷ 83%.

A plot that isn't parcelled must build the public road and green space it cedes: the deducted area is constructed at ~€120/m² (roadworks, services, landscaping). These works land at the end of the project — the final months of construction, finishing at handover.

Each house needs land: net land divided by the number of houses must leave at least ~330 m² per house for the dwelling, setbacks, parking and a usable garden. Below that, the scheme isn't feasible for the designated house size — reduce the unit count, shrink the product, or switch typology.

• City-centre apartments80 m²

  Compact stock dominates central locations: units average 80 m² net sellable area. Off-plan apartment prices appreciate ~10% p.a. during construction as the building rises and stock sells down.

• Suburban apartments112 m²

  Suburban blocks skew to family-sized two/three-bedroom layouts, averaging 112 m² net sellable area. Apartments appreciate ~10% p.a. during the construction period.

• Suburban housing190 m²

  Detached and semi-detached houses average 190 m² covered area. Villa product appreciates more slowly off-plan — ~5% p.a. during construction — as buyers pay for the finished home, not the tower-crane discount curve. Per m², houses price ~20% below apartments in the same bracket (more area, lower rate) and sell at roughly half the pace — a higher ticket and a thinner buyer pool at any positioning.

• Budget €3,200/m² sale · €1,500/m² build

  Entry-level product: standard finishes and efficient layouts. Deepest buyer pool, so it sells fastest (~2 units/month) at the thinnest margin per m².

• Mid-market €4,500/m² sale · €1,800/m² build

  The market's centre of gravity: good finishes, standard amenities. Sells ~1 unit/month with a balanced price-to-cost spread.

• Upscale €6,000/m² sale · €2,200/m² build

  Premium locations and specification. A narrower buyer pool trades velocity (~0.5 units/month) for a wider spread between price and cost.

• Luxury €8,500/m² sale · €2,800/m² build

  Trophy product: top-tier design, materials and views. Few qualified buyers (~0.3 units/month) but the highest revenue per m² by far.

Benchmarks are apartment prices per m² of sellable area; housing sells at 80% of the bracket's rate (larger homes trade at a lower €/m²). Custom prices are used exactly as entered.

Off-plan prices rise while the project is under construction — 10% p.a. for apartments, 5% p.a. for houses — then revert to a long-run 2% p.a. after completion. Revenue is realised at the appreciated price of each unit's sale month.

Projects don't sell on day one. The land is acquired at model start (today); design and permitting then run 6 months for apartment schemes up to 12 units, and 12 months for larger schemes and all housing. Construction and off-plan sales start together when design concludes, and marketing begins within 3 months of project start to build the brand before launch.

2 years — or 3 years for suburban housing projects over 20 units.

Apartment projects and small housing schemes build out in 2 years. Suburban housing projects over 20 units run 3 years — phased infrastructure and multiple contractors stretch the programme.

• Budget 2.0 units / month
• Mid-market 1.0 units / month
• Upscale 0.5 units / month
• Luxury 0.3 units / month

The sell-out period is not an input: it is derived from the project's unit count and the average sales velocity of its price category. Housing sells at half the apartment pace in every bracket — a higher ticket and thinner buyer pool. Slower categories automatically produce longer sell-outs, later cash and lower NPV.

Sales don't run at full speed from day one. The model uses an absorption curve: the launch starts at 40% of the category's velocity and ramps to full pace over the first 3 months (small schemes) or 6 months (larger ones) while marketing gains traction; the scheme then sells at full velocity until ~85% of stock is gone; the last 15% — the least attractive units — sell at half pace, often past completion at appreciated prices. Units are scheduled monthly, so a mid-year launch no longer compresses a year's quota into a few months.

Buyers pay off-plan: 30% on contract, 30% at month 9, 30% at month 18 and 10% on completion. A unit sold after a milestone has passed pays the missed tranches immediately (catch-up), so later sales front-load more cash.

• Sales commission 5% of revenue

  Standard Cyprus agency commission on off-plan sales.

• Sales management fee 1% of revenue

  Sales-process management (CRM, reporting, agent coordination), paid in step with collections — on top of the agency commission.

• Marketing 1% of revenue

  A full marketing budget: fixed launch assets (brand, website, CGI renders, film, brochure — ~12% of the budget) plus a flexible campaign pool (paid media, PR, events, portals) spread over the sales period.

• Design & engineering 5% of construction

  Architect, engineering and site-supervision fees; ~83% pre-development, ~17% supervision during works.

• Contingency 5% of construction

  Reserve for cost overruns and change orders.

• Project management 3% of construction

  Construction management of the general contractor.

Planning and building permit fees scale with the building: ~€7/m² GFA for the planning permit and ~€11/m² GFA for the building permit (calibrated to recent Allora projects). Small schemes file the planning permit ~3 months in and the building permit at month 6; larger schemes file at months 6 and 12 — so the building permit always lands as construction starts.

Running a development SPV isn't free: incorporation and acquisition legals plus a bank-compliance commission on the land transfer at setup; then audit, accounting, corporate secretarial, tax compliance, registered office and bank fees every year (audit and accounting scale mildly with project size); and a final striking-off cost when the SPV closes. Typically ~€100k over a mid-size project's life.

Profits are taxed at Cyprus corporate income tax of 15%. Before tax, a Notional Interest Deduction (NID) of 8% on the equity invested (the project's peak funding) is deducted in profitable years, capped at 80% of that year's taxable profit — a Cyprus incentive that rewards equity-funded development. Losses carry forward, so early-year losses shelter later profits; tax is paid in two provisional installments (31 July and 31 December).