The Cyprus real estate sector remains strong and stable, with experts predicting a promising future, according to discussions at the 19th Property Development & Construction Conference and Exhibition.
Market Stability and Emerging Challenges
During the roundtable session, “Cyprus Real Estate 2025 – How are Values Fluctuating and Expectations for the Future?”, industry leaders examined the sector’s resilience, investment patterns, and long-term prospects.
Kikis Athinodorou, Director of Kikis Athinodorou & Associates LLC, described the market as stable but flagged concerns over a 5% capitalisation issue, where older buildings remain unsold. He emphasized the importance of maintenance investments to uphold property values and urged stakeholders to look beyond student accommodation to ensure market sustainability.
Regulatory Challenges and Investment Incentives
Markos Christodoulou, Managing Director of IKIA RESIDENCE, acknowledged ongoing large-scale developments but cautioned against over-reliance on permanent residency schemes.
He pointed out that applications for investment-based residency had declined and suggested that Cyprus should streamline its policies—taking cues from Malta’s efficient approach—to attract more foreign investors and businesses.
Growth Trends in Local and Foreign Demand
Highlighting the dynamics of local and international property demand, Georgios Chrysochos, Director of Cyfield Group, noted that:
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Local buyers benefit from economic stability and favorable interest rates.
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Foreign demand remains strong, but housing supply isn’t growing fast enough to meet demand.
He also pointed out that delays in public projects were often misattributed to contractors, when in reality, bureaucratic inefficiencies and a lack of independence among public engineers contributed to the slow progress.
The ‘Golden Era’ of Real Estate
Petros Lazarou, CEO of G&P Lazarou Estate Agents Ltd, predicted a bright future for the sector, referring to it as a “golden era”.
He highlighted Cyprus’ strategic position as an energy hub, particularly as the EU seeks alternatives to Russian gas. This shift has made Cyprus’ maritime zones increasingly valuable, attracting corporate investors who are now acquiring and redeveloping properties that were previously linked to non-performing loans (NPLs).
Larnaca’s Rising Market and the Role of AI
Panikos Livadhiotis, Managing Director of L. Livadhiotis & Sons Property Developers, pointed to Larnaca’s strong market performance, crediting sustainable banking practices for ensuring healthy buyer-developer relationships.
He observed a shift away from high-rise buildings in favor of smaller, more practical structures and emphasized how artificial intelligence (AI) is transforming real estate communications and operations.
Globalization and Future Growth Prospects
Pantelis Leptos, Co-President of Leptos Group, discussed how the pandemic accelerated real estate globalization, making Cyprus an appealing destination for digital nomads and remote professionals.
He projected that Cyprus’ GDP could grow from €35 billion to €50 billion, provided the country prioritizes sustainability, digitalization, and talent attraction in its economic strategy.
Confidence in the Market’s Future
The panel, moderated by Yiannis Misirlis, President of the Cyprus Property Developers Association, reinforced confidence in the sector’s future. Experts agreed that Cyprus’ real estate industry is on track for continued growth and transformation, backed by strategic investments and policy improvements.
Source: Cyprus Property News