At the age of 23, he was called upon to take on a very challenging task, leading a company. His young age did not deter him. Nikolas Karoullas, CEO of Karma Group, has achieved the impossible. In just a few years, he fully settled the company’s debts, and today the company boasts 10 new complexes funded entirely by its own resources. The bar continues to rise as he builds the present while planning for the future.
The Origins of Karma Group
The Karma Group of Companies was founded in 1985 by the late Pambos Karoullas, with the aim of developing real estate, having the privilege of being the first land development company in the free province of Famagusta. The group’s main operations stem from Karma Group, which is engaged in the land development sector with its activities focused on the areas of Protaras, Kapparis, Ayia Thekla, and Ayia Napa. The company offers ideal holiday and permanent residences just a few meters away from the sea, catering to all tastes and financial needs.
Leadership Transition
When did you take over the company’s management, and how difficult was the transition from the first generation to the second?
The business is family-owned, so its management passed to me and my brother, Konstantinos, 10 years ago, after the unexpected death of our father.
The transition was far from easy. At the age of 23, I had to postpone my studies for a year and return to Cyprus to take over the company at a time when the economic crisis had begun in earnest. Fortunately, I received considerable support from my family and my team, who stood by me then and continue to do so today.
Not only did the company survive, but it also managed to clear most of its obligations and expand significantly. Today, it operates within healthy, rational frameworks and with a new organizational structure, building on human relationships, whether dealing with clients, staff, or partners.
From the Impossible to Success
What challenges did you face, and how did you manage to overcome them? Were there any dilemmas, fears, or concerns?
When you have to steer a ship with millions of liabilities without any prior experience, one can assume that the challenges are immense, and at the time, survival seemed impossible.
Fortunately for us, we had solid infrastructure and a strong reputation, which, combined with good management by our team and staff, led us to success.
First, we addressed liquidity issues through direct sales, negotiated agreements with our banking partners, and started consolidating company expenses. Over the past decade, we faced many challenges, but we handled them correctly, as evidenced by our results.
What advice from your father do you hold dearest?
My father taught me to uphold the principles and values I was raised with. Values that cannot be bought with any amount of money or material exchange. “The results will come in the long run,” he used to say, and he was right.
What do you consider your greatest success?
Honestly, I consider our greatest success to be the strong team of people we have built within the company, people I can trust. All other successes, big or small, along with our mistakes, are simply part of the business.
That said, the fact that the company has fully settled its debts and now has 10 new self-financed complexes speaks volumes, especially given the challenging times we have faced.
What Sets Karma Group Apart
Despite your young age, you have managed to position your company as one of the largest and fastest-growing in the land development sector, undertaking major projects.
How did you achieve this?
I don’t think there’s a secret formula for success, just a strong work ethic, passion for what we do, and unwavering commitment to our values.
Our goal is not just to sell properties or expand aggressively, but to maintain the company’s good name through the quality of our constructions and customer service, both before and after the purchase.
I believe our product stands out because we focus on detail and design. Today’s clients have high expectations, so I demand the best from my team. We must serve and safeguard our clients at every level.
Strategically, the company has proven to make the best location choices, adding value to our customers’ investments. Additionally, we ensure a diverse range of properties, catering to all economic levels – from affordable apartments to luxurious beachfront villas. For anyone looking for property in Ayia Napa or Protaras, Karma is certainly among the top choices.
What differentiates you from the competition?
Karma has completed over 120 projects and delivered more than 4,000 homes since its inception. Today, what sets us apart is our construction quality and our human-centered approach toward partners and clients.
Additionally, we believe that our new approach to design has made our projects even more attractive and unique. Moreover, we are implementing appropriate construction methods that ensure all our properties meet A+ energy efficiency standards.
Management and Corporate Responsibility
How important is Corporate Social Responsibility (CSR) to your company, and what actions do you take in this regard?
Karma acknowledges that businesses need society just as much as society needs businesses.
Therefore, we place particular emphasis on our social and environmental footprint both through ethical business practices but also through targeted initiatives that support vulnerable groups.
Our company has implemented various initiatives centered around respecting humanity and protecting the natural environment.
Karma also supports sensitive and vulnerable groups, provides opportunities for young men and women, organizes annual charity events, and significantly contributes to the local community, usually keeping a low profile about it.
What is your personal management style?
To lead today, you must inspire, share your vision with your team, and have a clear, effective management model.
Considering this, and to properly utilize the company’s resources and capital, I had to invest in human capital by influencing all levels of the organization, offering training, and developing employees’ skills.
We also focus on increasing productivity, improving job quality, and providing opportunities for career advancement through long-term planning.
I believe in a people-centered approach, and my office door is always open to anyone who needs support or guidance.
Risks, Investments, and Future Plans
What was the biggest business risk you have ever taken?
Investment and risk go hand in hand. The market and circumstances change constantly. I believe that any major investment in expensive land carries risk, but if the location is good, its value is unlikely to decline.
Investments, Projects, and Plans
How important are your employees to the organization, and what do you do as a leader to keep them loyal?
The company’s strength comes primarily from its workforce. Every employee, through their personality, character, and knowledge, adds immense value to our daily efforts in managing and meeting client needs. We believe in our employees, which is why we invest in them.
What did you study?
I studied Business Administration and Finance at Liverpool. Unfortunately, circumstances did not allow me to pursue a master’s degree at the time, but it’s still in my plans.
What are your immediate future plans?
Given recent developments in the real estate market, our company has placed great emphasis on thematic developments, design, and aesthetics, making our projects stand out.
Some of our most exciting upcoming projects include:
- The next phase and expansion of the Mythical Resort.
- The new Halki project, a distinctive development that will define our company for years to come.
- The Almaria complex in Pernera, near Paralimni Marina.
- Malama Villas Phase B, just 200 meters from Malama Beach in Kapparis.
Additionally, this month we will complete two milestone projects, one of which is a beachfront development.
A Dynamic Market
Where does your industry stand today? We are seeing notable growth.
The real estate sector currently presents a very positive outlook with strong future potential.
Market corrections following the financial crisis, economic growth, and infrastructure projects such as themed hotels, marinas, casinos, universities, and golf resorts are becoming a reality, adding new momentum to our industry. Beyond traditional property buyers, we are now attracting foreign institutional investors.
At a Glance
- Employees: 148
- Headquarters: Paralimni
- Market Focus: Primarily Cyprus, followed by the Middle East and China
This interview was published in IN Business (May issue).
https://karmadevelopers.com/setai-residences-karma-developers/
SETAI Residences: Karma Developers’ First Residential Project Near My Mall Limassol
In recent years, the cosmopolitan city of Limassol has witnessed impressive growth in the real estate sector, with a continuously increasing demand for investment apartments.
Karma Developers, with its first residential project in Limassol, is making its mark in the area with SETAI Residences. The potential for high-yield apartment investments, especially for rentals, offers numerous advantages to investors who allocate initial capital, generating active income with a stable depreciation trajectory.
Construction work on the complex has already begun, and the company is set to deliver 15 high-quality apartments that meet the modern needs of even the most demanding buyers within 16 months.
The SETAI Residences in Limassol are located near My Mall Limassol and the City of Dreams Mediterranean resort. It features one-, two-, and three-bedroom apartments ranging from 64 to 147 square meters, all classified as Energy-efficient Class A.
This project provides buyers with an unprecedented opportunity to acquire a property that offers the perfect balance of natural beauty and urban cosmopolitan living at affordable prices.
SETAI 1
The Ideal Investment Begins with Design
SETAI Residences stands out for its modern architectural design and minimalist aesthetic, highlighted by a combination of glass, natural concrete, and bold tones. The construction details seamlessly blend with the urban surroundings.
The sharp contrast between different angles, textures, and subtle shades of the exterior walls creates a visually striking effect, with a sense of structural ingenuity. The fully enclosed multi-story building is surrounded by moving natural light and vibrant landscaped green spaces, offering relaxation to its residents.
At the same time, the interior design maximizes the available space, creating a warm and inviting atmosphere in each residence.
SETAI 3
An Attractive Investment and Living Opportunity
The intense business activity of multinational companies and their willingness to relocate headquarters or branches to a safe and investment-friendly destination like Limassol – especially in the Port area, where there is a large workforce – is a strong testament to why the Setai residential complex is an ideal investment and an excellent choice for a primary residence.
About KARMA Developers
With over 38 years of experience in the industry, KARMA Developers has delivered more than 5,000 properties to date.
The company’s ethos is shaped by the values that define the Cypriot people: hospitality, integrity, humanity, and trust. With a strong emphasis on quality and a commitment to offering multifaceted customer service experiences, Karma Developers adds value to every project by constructing properties with unique design and high aesthetic and functional standards in the most privileged locations!
Eden Residences: Minimalist Elegance with Stunning, Unobstructed Views of Protaras’ Sea
With the magic of Protaras’ endless blue sea flowing abundantly into its minimalist modern design, Eden Residences by KARMA Developers evokes nothing less than awe and admiration.
Inspired by diversity, history, and the evolution of the free Famagusta region, as well as the initial letter of the word EDEN (E), meaning paradise, the apartment complex’s design masterfully combines modernity with simplicity.
Its pure beauty captivates even the most indifferent eyes. Located just 400 meters from Protaras’ golden sandy beaches, it offers an unparalleled, unobstructed view of the area’s breathtaking, award-winning blue waters.
Simplicity defines the elegant design of the building, which highlights the natural beauty of the region, offering visitors a unique journey into the deep blue of the Mediterranean that flirts with Cyprus’ golden-green hues. The glass panels surrounding all Eden Residences apartments ensure that residents never forget they are in one of the most enchanting spots on the island.
A Harmonious Blend of Design and Functionality
Five key principles characterize the project: levels and atriums, indoor and outdoor spaces, greenery, views and privacy, light, and identity. The result is a vertically layered structure.
Slabs of varying sizes maximize both space and privacy while enhancing the seamless connection between the interiors and exteriors of the apartments. The attention to detail and the focus on combining high-quality materials result in a construction that is both impressive and sophisticated.
The apartment complex is enclosed within a gated community featuring over 5,000 square meters of green spaces, a barbecue area alongside the communal pool, as well as a reception area, gym, and lounge.
Unique Apartments in the Heart of Protaras
With a selection of two- and three-bedroom apartments, each unit is skillfully designed to provide uninterrupted sea views, making Eden Residences an ideal home for families and an exceptional investment opportunity in central Protaras.
In addition to its functionality, the project offers comfort and convenience, as it is situated in the heart of Protaras’ coastal paradise. Furthermore, its underground parking area provides direct access to each floor via an elevator.
Walking through the flawlessly arranged interiors and the building’s automation systems feels like a journey through quality, enhanced by the intricate lighting of each room that maximizes space. The minimalist architectural details complete the scene. Buyers also have the option to personalize their spaces and leave their unique mark, selecting from a wide variety of lighting fixtures, furniture, and finishes.
The exceptional benefits and advantages offered by Eden Residences by Karma Developers couldn’t go unnoticed or unappreciated, as only four out of the 17 apartments in the complex remain available.
Karma Developers’ Vision for the Future
KARMA Developers, attuned to its customers’ desires for high-quality constructions in unique locations that offer ease, comfort, and wellness, is preparing a new residential complex of equivalent specifications near Fig Tree Bay. Its official announcement is expected before the end of the current year.
About KARMA Developers
With over 38 years of experience in the industry, KARMA Developers holds a leading role in shaping Cyprus’ eastern coastline, with perhaps the largest portfolio of completed projects in the region!
The company’s character is built on the values that define the Cypriot people: hospitality, integrity, humanity, and trust. With a strong emphasis on quality and a commitment to providing exceptional customer service experiences, Karma Developers adds value to every project, constructing properties with unique designs and high aesthetic and functional standards in the most privileged locations!
“Thea Residences”: Residential Complex in the Municipality of Deryneia by the KARMA Group
With a core design principle focused on defining a horizontal architectural character, featuring dynamic horizontal projections and expansive balcony spaces on all four sides of the horizon, “Thea Residences” complex represents the first development by the Karma Group in the Municipality of Deryneia. The aim is to provide a different touch and quality of life to those looking to fulfill their dreams.
Located in one of the quietest areas of Deryneia, next to the municipal amphitheater and with views toward Famagusta, on a corner plot with easy access to all services and just a few minutes away from Paralimni, Thea Residences will be the first residential complex for the Karma Group in the Deryneia Municipality, establishing itself as a symbol of luxury living in the area.
Apartments and Their Features
The four-story building will feature covered parking spaces for each apartment and three residential floors, with roof gardens for the penthouses. Each floor will have only two apartments, separated by the common space of the staircase and elevator, making each apartment almost independent, while enjoying views from all sides.
The group has adopted green policies in the execution of its projects, recognizing their importance not only for the sustainability of the buildings it creates but also for the broader effort to improve the planet’s climate. High-quality materials are used to upgrade the energy efficiency of the building to class A standards. This includes space for the installation of photovoltaic panels and electric vehicle charging stations for each unit.
The residential complex “Thea Residences” is part of the government’s subsidy plan for border areas, with benefits of up to €65,000.
Construction work is expected to begin in November 2022, and for more information, interested parties can contact the sales department:
+357 23 730 777
sales@karmadevelopers.com.cy
Halki Villas: With a Primary Focus on Well-Being
Nestled between the crystal-clear waters of Protaras and the lush greenery of Cape Greco, the 14 elegantly designed Halki Villas by KARMA Developers stand out for their minimalist architectural design, which intricately respects the natural surroundings.
The design of these energy-autonomous villas is inspired by the natural landscape that surrounds them. The blend of stone, wood, and raw concrete elements offers a natural yet modern aesthetic, seamlessly integrating the natural environment with human craftsmanship.
Carefully positioned in relation to the sun, air currents, and with a view towards the sea, each villa creates the perfect conditions for comfort, relaxation, and well-being.
The spaces within the Halki Villas are masterfully organized with visible linear divisions running through each home, effectively separating them from the road while simultaneously emphasizing and expanding the space, making the most of the stunning views of the azure sea.
A New Era for KARMA Developers, Offering Clients Unique Designs in Protaras and Ayia Napa
The optimal use of space, achieved by connecting the interior and exterior areas as well as the pool, creates an absolute feeling of comfort and relaxation. The large openings on the ground floor of the villas offer abundant natural light. The entire composition is completed and enhanced by top-tier finishes that exude a sense of modern minimalist architecture.
Set amidst a landscape of rich natural beauty, the villas have aptly been named after the picturesque island of Halki, the smallest yet most charming jewel of the Dodecanese Archipelago.
The magic of the Halki Villas continues, as KARMA Developers moves forward with projects of similar aesthetic value in both the Cape Greco area and the heart of Protaras in the Yianna Mari area!
A Few Words About KARMA Developers:
KARMA Developers, with over 38 years of experience in the field, holds a leading role in shaping the eastern coast of Cyprus, with perhaps the majority of projects built in the area belonging to its portfolio.
The character of the company is shaped by all the qualities that distinguish the Cypriot people: hospitality, integrity, humanity, and trust. Focusing on quality and offering multidimensional customer service experiences, Karma Developers creates added value in every project, building properties with unique design and high aesthetic and functional standards in the most privileged locations.
Source: AlphaNews.live
An Elephant at KARMA in Support of the Sophia for Children Foundation
By Karma Marketing | In News | Posted July 17, 2024
KARMA Developers has adopted one of the elephants created as part of the philanthropic exhibition organized by the Sophia for Children Foundation, titled “Elephant in the Room”!
The elephants began their journey from Kenya to Cyprus, aiming to remind us all that the needs of children stand right before us, just like the elephant in the room, and we must not ignore them.
Twenty-two artists volunteered their time to transform the elephants into works of art, with the ultimate goal of supporting the work and actions of the Sophia for Children Foundation in both Cyprus and Kenya.
The project “Elephant in the Room” was presented at the Presidential Palace under the patronage of the First Lady, Philippa Karsera Christodoulides. During the event, the artworks were raffled to the companies that adopted them, each donating €5,000.
The CEO of KARMA Developers, Mr. Nikolaos Karoullas, attended the charitable exhibition, with KARMA adopting the elephant “Eternal King,” created by Cypriot artist Dimitris Neokleous.
For KARMA Developers, corporate social responsibility initiatives are a fundamental pillar of the company’s philosophy and identity. For the company, these actions are not an obligation but an opportunity to contribute to building a better society.
New Technologies and AI Transforming Real Estate – CEOs’ Estimates
By Karma Marketing | In News | Posted February 12, 2024
The rapid technological advancements of recent years have brought significant changes to various business sectors, including real estate and construction.
Technology and artificial intelligence (AI), in addition to their impact on the internal workings of companies in the sector, have influenced how individuals perceive, invest in, and manage properties.
From automated market analysis to personalized user experiences, technology is creating a new horizon of opportunities and challenges in the real estate sector. Its further integration is expected to bring even more significant changes.
Three industry entrepreneurs shared their insights with InBusinessNews on how technology and artificial intelligence are bringing changes to real estate and their role today.
Specifically, Nikolaos Karoullas, CEO of Karma Group, Giannis Misirlis, President and Founder of Imperio, and Stavros Karamondanis, CEO of Ayia Napa Marina, provided their insights on the matter.
Key Insights:
Nikolaos Karoullas mentions, “The adoption of innovative technologies such as robotic process automation (RPA), virtual reality (VR), project management information systems (PIMS), drones, smart sensors, and artificial intelligence will streamline various processes and lead to increased efficiency and reduced costs.”
Giannis Misirlis emphasizes that virtual presentations of properties for sale or rent have eliminated distances, making property showings much easier. He also adds that various smart solutions and modern automations greatly facilitate tenants’ daily lives, further enhancing their quality of life.
However, according to Stavros Karamondanis, it is important to consider that not all users/clients are on the same level of knowledge, and therefore may not be able to fully utilize technology applications.
“For this reason, more effort and intensive user/client training may be needed,” he clarifies.
A common conclusion among all three entrepreneurs is that although dramatic changes have occurred in the sector in recent years due to new technologies and AI, the future promises even more, as well as areas that still need improvement.
What they said in detail to InBusinessNews:
Nikolaos Karoullas, CEO of Karma Group:
The integration of technology and artificial intelligence (AI) in our sector is expected to bring dramatic changes in the coming years, both in construction and real estate.
The adoption of innovative technologies such as robotic process automation (RPA), virtual reality (VR), project management information systems (PIMS), drones, smart sensors, and artificial intelligence will streamline various processes, leading to increased efficiency and reduced costs.
As for AI, we still have a long way to go, as its use, contribution, and impact are currently limited to specific projects with a minimal percentage.
However, this will change soon, driven by rapid advancements. I expect that companies will soon invest significantly in AI tools for data management, enhanced security and communication, and object simulation, like digital twins that will predict the performance of a specific object or service in the real world.
The revolution of technology and AI in our sector will bring multiple benefits. However, it is important to realize that there are significant challenges such as data privacy, security, and the need for specialized labor capable of utilizing these advanced technologies.
Giannis Misirlis, President and Founder of Imperio:
The technology sector is closely connected to real estate as it influences the environment in which we operate – the way we design a project, construction, implementation, and buying/selling, etc.
New technologies help us significantly in assessing existing needs, so our portfolios are framed with projects that will be useful and serve their intended purpose.
At the same time, virtual presentations of various properties for sale or rent have eliminated distances, making the process of showcasing the property much easier.
Additionally, various smart solutions and modern automations significantly improve the daily lives of tenants, improving their quality of life.
Of course, we still have much to see from new technologies and AI applications in real estate.
Stavros Karamondanis, CEO of Ayia Napa Marina:
Technology and its applications have always played and will continue to play a significant role in developments in both land development and other sectors of the economy.
While the opportunities and integration of technology are undoubtedly critical, certain aspects require attention.
It is a fact that AI & VR technologies offer immersive experiences for users of products and services, as well as potential new clients/investors.
However, at this moment, there is a significant shortage of personnel who can fully integrate and utilize these technologies. Additionally, the application of emerging technologies in the early stages is naturally accompanied by high implementation costs.
One thing that needs consideration is that not all users/clients are on the same level of knowledge, and therefore cannot fully utilize technology applications to the same extent. For this reason, more effort and intensive training of users/clients may be required.
These points should not be seen as obstacles to the implementation and further utilization of these technologies.
Setai Residences: The Ideal Investment by Karma Developers
By Karma Marketing | In News, Projects | Posted May 29, 2024
The SETAI residential project by Karma Developers is underway in the cosmopolitan city of Limassol, just 1.2 km from the City of Dreams Mediterranean resort-casino. Due to the growing demand for investment properties in Limassol, KARMA Developers is making its mark with the new SETAI Residences project, offering apartments with returns of up to 6%.
The SETAI complex is located close to everything Limassol has to offer, combining the perfect balance of natural beauty and cosmopolitan city life. Its unique location makes it particularly attractive for those seeking the ideal investment in real estate, as the complex is adjacent to a green area, a school, a supermarket, cafes, and restaurants. It is just 550 meters from My Mall Limassol and 1.5 km from the beachfront of the New Port.
Karma Developers’ Modern Aesthetic Building
Setai Residences consists of fifteen elegantly designed one, two, and three-bedroom apartments spread across a state-of-the-art three-story building. Each apartment offers a distinct and unique living space tailored to the needs and requirements of modern life. The attention to detail is uncompromising, both in the building’s distinctive linear design elements that blend perfectly with the surrounding urban landscape and in the use of materials such as glass, exposed concrete, and refined color tones that convey structural ingenuity.
Sales have reached 50%, with delivery scheduled for April 2025.
About KARMA Developers:
With 39 years of experience in land development and construction and having delivered over 5,000 properties primarily to Cypriot buyers, KARMA Developers is now one of the most reliable companies on the island.
The company’s permanent goal is the construction of complexes in prime locations, with a strong emphasis on design, construction quality, the creation of green spaces, and the issuance of property titles.
Nikolas Karoullas: Real Estate in 2024 and the Expansion of Karma in Nicosia and Limassol
By Karma Marketing | In News | Posted January 16, 2024
In 2024, with the stabilization of external factors affecting the Cypriot economy and the reduction of inflation, construction activity is expected to recover in both the private and public sectors, according to the CEO of Karma Group, Nikolas Karoullas.
In an interview with InBusinessNews, as part of the “IN Business Forecasting 2024,” Mr. Karoullas explained that the construction sector has been in instability following the shocks caused by the pandemic and the global geopolitical imbalances that followed. However, he highlights that construction and real estate have repeatedly proven to be the safest and best investments, especially in times of crisis.
Noting that during this period the sector demonstrated strong resilience, the CEO of Karma emphasizes that there is still much to be done in 2024, prioritizing the fight against bureaucracy, simplifying and accelerating the processes related to licensing and development control.
Nikolas Karoullas points out that in 2023, Karma Group announced its first residential project, Setai Residences, in the Limassol district, which, according to him, was the starting point for the company’s expansion into other cities in Cyprus, beyond the Famagusta district, where it holds a leading role in shaping the eastern coastline of Cyprus.
“In 2024,” he emphasizes, “we will continue our development plan with our first project in the Nicosia district, while continuing to focus on projects that invest in green development.”
How do you see the economic environment shaping up in 2024, given inflationary pressures, high interest rates, and unpredictable geopolitical developments?
Cyprus’ economy is particularly vulnerable due to its dependence on the political and economic developments occurring in Europe and the broader world. This was confirmed by the recent crises of the pandemic, the ongoing conflict between Russia and Ukraine, and the war in our neighboring Israel and Gaza.
The instability in the global economy and international relations is expected to continue into the new year, once again testing our resilience. However, the forecasts from the Ministry of Finance for the Cypriot economy in 2024 are optimistic, as they predict an economic recovery with a higher growth rate of 2.9%, while inflation and unemployment are expected to decrease.
The forecasts are encouraging, but should not make us complacent. Both the government and the private sector must focus on the next steps and proceed with the transformative changes necessary to create a more sustainable and resilient economy, one that does not rely heavily on external factors.
What do you consider to be the biggest and most challenging issues that the Cypriot economy will face?
2024 is expected to be another year of significant challenges. With inflation decreasing significantly, our concerns are now focused on high interest rates and the impacts they may have if not reduced soon.
At the same time, we must address the consequences that the sanctions imposed on Russia have had on the Cypriot economy, which have significantly affected the services and investment sectors.
Furthermore, the ongoing war in Israel and Gaza creates uncertainty for the country’s tourism industry, while other major challenges include the energy sector, extreme weather events, the dysfunction of the global supply chain, and lower export performance.
The role of the state and the private sector
Would you say that, considering recent upgrades, Cyprus is now firmly on a growth trajectory?
The country’s acquisition of investment grade from Moody’s, the positive ratings from other agencies, and the macroeconomic forecasts from the Ministry of Finance and the European Commission for 2024 send encouraging signals regarding the country’s developmental path.
However, significant steps must be taken to ensure our efforts move in the right direction, both as a state and as the private sector.
The government must first implement the reforms and investments related to Cyprus’ National Recovery and Resilience Plan, move forward in areas and regulations that will accelerate procedures, eliminate bureaucracy, and provide incentives for new investments.
On our part, businesses must invest in technology and artificial intelligence, in specialized human resources, and in applying practices related to the environment, society, and governance (ESG).
Real Estate: The Safest Investment
What do you think will be the path of the sector you operate in during 2024?
Construction and real estate have repeatedly proven to be the safest and best investments, particularly during periods of crisis.
The projects already underway in energy, tourism, and healthcare are contributing to a surge in investment in the sector.
In 2024, with the stabilization of external factors affecting the Cypriot economy and the reduction of inflation, construction activity is expected to recover in both the private and public sectors.
A significant contribution to the sector’s growth will come from the Recovery and Resilience Plan through capital investments, and according to the macroeconomic estimates of the Ministry of Finance, they are expected to positively contribute to growth, especially in 2024-2025, by approximately 0.8%.
If you had the opportunity to request specific measures or policy changes to support/enhance your sector from the government, what would they be?
The housing problem and affordable housing are perhaps the most pressing issues for society, with significant implications. This is an issue that requires immediate regulation by the government, which recently announced measures in the right direction.
I believe that addressing the problem will come with the development of significant housing projects that will meet demand and help reduce rents.
This can be achieved through incentives, subsidies, and green financing.
Another critical issue is the urgent need for the revision and modernization of the licensing system for development projects.
Adaptation to New Trends—ESG and New Technologies
What are the biggest trends/changes in your sector that you expect in 2024?
With climate change being a top priority globally, sustainable and green developments are playing a role in the efforts for a carbon-neutral future.
Energy-efficient and environmentally friendly buildings are now one of the greatest desires of buyers seeking high-energy performance properties to enjoy both short- and long-term benefits.
At the same time, we must not overlook the rapid technological development and artificial intelligence, with their growing influence on new generations who are seeking “smart homes” with high-tech services and tools.
The adaptation of our sector to modern trends will determine its sustainability. Companies that incorporate ESG criteria and new technologies into their projects will undoubtedly gain a competitive advantage.
Specifically, what role does technology, such as artificial intelligence, play and what changes are expected in your sector?
The integration of technology and artificial intelligence (AI) in our sector is expected to bring dramatic changes in the coming years, both in construction and real estate.
The adoption of innovative technologies such as robotic process automation (RPA), virtual reality (VR), project management information systems (PIMS), drones, smart sensors, and AI will streamline various processes and lead to increased efficiency and reduced costs.
As for AI, we still have a long way to go, as although it is used in specific projects, its contribution and impact are still limited.
However, this will change soon, as developments are progressing rapidly, and I expect that companies will soon make significant investments in AI tools and equipment related to data and document management, enhanced security and communication, and object simulation, such as digital twins, which will predict the performance of a specific object or service in the real world.
The technological revolution and AI in our sector will bring multiple benefits, but we must also take into account important challenges such as data privacy, security, and the need for a specialized workforce capable of leveraging these advanced technologies.
The Sector’s Biggest Problems
What are the most significant issues currently affecting the sector, and which ones do you consider to be a priority to address in the new year?
The construction sector has been in instability after the shocks caused by the pandemic and the global geopolitical imbalances that followed.
Disruptions in the supply chain, rising construction costs due to inflation, energy issues, and high interest rates have contributed to the sector’s slowdown, which is reflected in the decline in building permits both in terms of numbers and square footage.
During this period, the sector demonstrated strong resilience. It developed rational risk management models to select profitable projects, invested in the physical and mental health of its workers, and made significant strides toward sustainable development and digital transition.
However, there is still much to be done in 2024. First, we need to combat bureaucracy to simplify and accelerate the processes related to licensing and development control. This is something we hope to achieve with the implementation of the Local Government Reform.
A solution also needs to be found for the housing crisis, which today is an unattainable dream for young generations who are unable not only to acquire their own homes but even to rent.
At the same time, one of our top priorities is the green transition and digitization of the construction sector, ensuring that new projects align with modern demands and incorporate the Circular economy, numerous innovations, and energy autonomy.
Other issues that need to concern us are public works production processes, the quality offered, the protection of cultural heritage, as well as construction site safety and workforce specialization.
Karma’s Expansion in Nicosia and Limassol
What are your plans/strategy for 2024? Should we expect new developments and further establishment in the market?
In 2023, we announced our first residential project, Setai Residences, in the Limassol district, which was the starting point for our expansion into other cities in Cyprus, beyond the Famagusta district, where we hold a leading role in shaping the eastern coastline of Cyprus.
In 2024, we will continue our development plans with our first project in the Nicosia district, while continuing to support projects that invest in green development.
We are also in the process of announcing our first zero-energy performance project in the Cape Greco area, Protaras.
A complex located in nature, where it will be built with consideration for the surrounding area, using recyclable, natural, and biological materials that are constructed with zero emissions, and will have its own water recycling system, photovoltaics, etc.
At the same time, at Karma Group, we will continue to create projects of modern aesthetics that respect the surrounding space in which they are built, supporting our timeless approach, which integrates the aesthetics and construction materials of our projects organically and harmoniously into the space where they will be constructed.
This policy sets us apart from the competition.
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claudia@karmadevelopers.com.cy
16 Kennedy Avenue (Kapparis), Paralimni
