The Cypriot property market remains resilient and is poised for a “golden era,” according to industry experts at the 19th Property Development & Construction Conference and Exhibition.
The round-table discussion, titled “Cyprus Real Estate 2025 – How are values fluctuating and Expectations for the Future?” explored the sector’s stability, investment trends, and growth prospects.
Market stability and challenges
Kikis Athinodorou, Director of Kikis Athinodorou & Associates LLC, described the market as stable but raised concerns about a 5% capitalisation issue, where older buildings are left unsold.
He stressed the need for maintenance investments to sustain property value and called for a broader approach beyond student accommodation.
Need for speed and flexibility
Markos Christodoulou, Managing Director of IKIA RESIDENCE, acknowledged large-scale development projects but urged caution, particularly regarding permanent residency permits.
He noted that investment applications under this scheme had declined, and political forces must collaborate to address this. He cited Malta’s political efficiency as a model Cyprus could follow to attract foreign businesses.
Continued market growth
Georgios Chrysochos, Director of Cyfield Group, highlighted differences between local and foreign property demand. Local buyers benefit from economic stability and favourable interest rates, while foreign demand remains robust.
However, supply is not increasing at the required pace. He also criticised public project delays, arguing that contractor failures are not always to blame and called for greater independence among engineers overseeing public works.
The “Golden Era” of real estate
Petros Lazarou, CEO of G&P Lazarou Estate Agents Ltd, predicted a “golden era” for Cypriot real estate, driven by the country’s emergence as an energy hub. With the EU moving away from Russian gas, Cyprus’ maritime zones are becoming strategically significant.
He noted that strong corporations are now acquiring and reintegrating properties previously tied to non-performing loans (NPLs), further boosting the sector.
Larnaca’s positive trends
Panikos Livadhiotis, Managing Director of L. Livadhiotis & Sons Property Developers, highlighted Larnaca’s strong market performance due to sustainable banking practices.
Developers and buyers are proceeding without excessive reliance on financing.
He also noted a decline in high-rise buildings in favour of smaller, more manageable structures and emphasised the role of artificial intelligence in enhancing communication and efficiency.
Globalisation and future prospects
Pantelis Leptos, Co-President of Leptos Group, discussed the pandemic’s role in accelerating real estate globalisation. He pointed out that Cyprus has become attractive to digital nomads and remote workers.
He projected GDP growth from €35 billion to €50 billion if Cyprus prioritises sustainability, digital transformation, and talent attraction.
The discussion, which was moderated by Yiannis Misirlis, President of the Cyprus Property Developers Association, reinforced confidence in Cyprus’ real estate sector, with experts predicting continued growth and transformation.
